KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Asian markets slid on Monday amid growing confusion over US tariff plans and a sharp drop in oil prices, as geopolitical chess games and economic policymaking collide once again.
President Donald Trump’s weekend announcement hinted at a delay in tariff hikes until August 1, with letters to be sent to countries “not moving fast enough” on trade negotiations. Yet, the lack of specific details on countries affected and rates applied left investors in the dark.
“The path forward isn’t clear, but the terrain is littered with risk.” — Stephen Innes, SPI Asset Management
Key Market Moves:
Nikkei (Japan): -0.5%
CSI 300 (China): -0.5%
MSCI Asia-Pacific ex-Japan: -0.6%
South Korea: Flat
Singapore STI: +0.3% to 4,025.72 (as of 12:31 PM) – notably bucking the regional trend
Trade Policy: Clouded by Ambiguity
While Trump’s team claims the new tariff letters are imminent, the lack of concrete agreements — especially with key partners like the EU, Japan, India, and Vietnam — has fueled investor unease. There’s still no confirmation on whether this delay applies to all trading partners or only select nations.
The stakes are high. Analysts warn that if tariffs revert to the April 2 baseline or escalate, downside risks to US and global growth could intensify — at a time when central banks are walking a tightrope between inflation and recession fears.
Oil Prices Skid: OPEC+ Sends a Shockwave
Oil prices sank after OPEC+ unexpectedly announced a supply hike of 548,000 barrels per day for August — with a possible repeat in September.
Brent: ↓ $0.52 to $67.78
WTI: ↓ $1.01 to $65.99
Analysts interpret this move as an attempt to undercut US shale producers and cap non-OPEC supply growth.
“We see OPEC+ targeting Brent around $60–$65. This pressures US shale and could shift long-term market share.” — Vivek Dhar, CBA
Other Market Insights:
Gold: Slight pullback (-0.3%) to $3,324/oz, still +2% last week on a weaker USD
10Y Treasury Yield: ↓ 2 bps to 4.326%
US Dollar: Mixed; DXY at 97.07, euro steady at 1.1771, yen firmer at ¥144.76
The Federal Reserve remains in focus this week, though few key speeches or data points are expected. Investors await clues on rate cut timing, especially amid external shocks.
Takeaways for Investors:
Expect volatility until the US clarifies its tariff plans post-July 9.
Singapore equities could outperform regionally if safe-haven flow trends hold.
Oil sector and related equities may face near-term pressure from OPEC+ actions — a potential buying opportunity if prices stabilize.
Watch for policy shifts from the Fed, RBA (likely cut to 3.60%), and RBNZ (expected hold at 3.25%) this week.
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