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Market Daily Report: Bursa Malaysia Closes Higher On BNM’s OPR Decision, Wall Street Gains

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.
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China Snack Maker Turns to State Help After Deep Price Cuts Amid Deflation Pressure

Bestore Co., a premium Chinese snack company, is selling a 21% stake to a local government-owned firm after cutting prices by 45% to stay competitive — a move that reflects the growing toll of China’s deflationary squeeze on private businesses.

What Happened:

  • Ningbo Hanyi Venture Capital, Bestore’s largest shareholder (>35%), and another investor will transfer 21% of shares to a government entity.

  • The deal is worth 1.05 billion yuan (RM620.67 million).

  • Once completed, the local government will become Bestore’s largest shareholder.

Why It Matters:

  • Bestore, known for dried fruits and puffed snacks, was the first premium snack retailer to list in Shanghai (2020).

  • Revenue has declined since 2022, with expected 1H 2025 losses exceeding 75 million yuan.

  • A price war has ravaged China’s F&B sector, forcing brands to slash prices unsustainably.

Deflation Fallout:

  • Intense competition has hurt multiple industries — from snack brands to EVs and coffee chains.

  • The Chinese government and trade bodies have urged an end to “involution” (cutthroat pricing).

  • Xi Jinping recently called for a crackdown on disorderly price competition.

Bestore’s Bet:

  • By aligning with a state-owned company, Bestore hopes to gain supply chain and logistics support, stabilizing its operations.

Insight:
Bestore’s restructuring is a sign of deeper stress in China’s private sector, as businesses facing shrinking margins and weak demand turn to state backing for survival.

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