KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Bank Negara Malaysia’s surprise OPR cut by 25bps is seen as a protective move to support growth amid global uncertainty, especially trade tensions.
🔍 Key Takeaways:
✅ Domestic activity still looks healthy – unemployment at 3%, retail trade up 4.1%
✅ Growth slowdown expected in 2H25, especially after the new 25% US tariff hits in Q3
✅ RAM Ratings expects 2025 GDP growth trimmed by 0.6 points due to tariff drag
✅ Banks may feel minimal impact on margins (2–3bps), with asset quality still sound
✅ Loan growth moderating, but no financial stress expected
✅ No further rate cuts anticipated — unless things get much worse
The cut should ease borrowing costs for households and businesses — and act as a safety net for potential shocks ahead.
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