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.
Markets are bracing for a high-stakes week as a series of major events could shake the recent calm that has propelled U.S. stocks to record highs.
Tariffs Loom Large
President Donald Trump’s Aug. 1 deadline for sweeping global tariffs is approaching. If no trade deals are reached, higher levies on key trading partners could take effect, potentially sparking volatility. The S&P 500 has surged 28% and the Nasdaq 38% since the market dip in early April following Trump’s initial “Liberation Day” tariff announcement.
Federal Reserve in Focus
The Federal Reserve’s policy meeting on Wednesday is another major market driver. The Fed is expected to keep rates steady as officials wait to assess the impact of tariffs on inflation. However, tensions remain high, with Trump urging Fed Chair Jerome Powell to cut rates immediately. Some of Trump’s own appointees have signaled support for a cut as early as this month.
Tech Earnings on Deck
Apple, Microsoft, Amazon, and Meta — four of the “Magnificent Seven” — will report results. These megacaps carry heavy weight in the S&P 500 and Nasdaq due to their massive valuations. So far, with 30% of companies reporting, Q2 earnings are tracking a 7.7% year-over-year gain, above early July estimates of 5.8%.
Jobs Report to Cap the Week
Friday brings the July employment report, with economists expecting 102,000 new jobs, following 147,000 in June. Strong data would reinforce signs of a modest economic re-acceleration.
Volatility Watch
Despite the rally, analysts warn the market is priced for perfection. The S&P 500 trades at 22.6 times earnings, well above the historical average of 15.8, leaving stocks vulnerable to disappointment. The Cboe Volatility Index has dropped below its long-term median, though meme-stock-style spikes in names like Kohl’s and Opendoor are flashing signs of speculative excess.
“There’s a lot to digest next week,” said Matthew Miskin of Manulife John Hancock Investments. “Expectations are much higher now, so any miss could hit hard.”
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