KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
As geopolitical tensions and trade fragmentation rattle global markets, Malaysia is fast emerging as a bright spot for investors seeking stability and sustainable growth, according to Franklin Templeton Institute strategist Christy Tan.
Malaysia’s Strengths:
2Q25 GDP: +4.5% YoY, driven by a 5.3% services boom and 3.8% infrastructure expansion.
Fiscal reforms: Expansion of the Sales & Services Tax and rationalised electricity tariffs bolster public finances without hurting growth.
Strategic positioning: Digitisation, sustainability initiatives and the Johor-Singapore Special Economic Zone (SEZ) are turning Malaysia into a regional trade diversification hub.
Investor Insight: Despite RM11 billion in foreign equity outflows in early 2025 due to global trade tensions, Malaysia’s high-dividend defensive sectors tied to infrastructure and digital transformation continue to attract interest.
Asia’s Adaptive Edge
India: Remains a top conviction play on resilient GDP and booming digital economy.
Japan: Fresh U.S.-Japan trade deal spurred US$5.6 billion in U.S. inflows in 1H25, 4x YoY.
Emerging Markets: Low external debt and monetary flexibility make select EM debt attractive as global rates ease.
U.S. Outlook: Rally Meets Risk
S&P 500: +30% since April; Nasdaq +41% — valuations stretched.
Inflation: Rebounded to 2.7%; new tariffs could push it to 3.3% by early 2026.
Debt: U.S. federal debt tops US$36T; annual interest costs now exceed US$1T.
Consumer stress: Savings rate at 4.5%, far below pre-pandemic norms.
The Takeaway
“In a world of rising fragmentation and volatility, Asia — and Malaysia in particular — offers a compelling case for long-term, resilient growth. This is where adaptability meets o
Comments
Post a Comment