KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Strong Earnings Signal Consumer Resilience
Visa (V) posted an 8% increase in quarterly profit to $5.3 billion, highlighting that consumer spending remains healthy despite lingering inflation concerns. Adjusted earnings came in at $2.98 per share, beating Wall Street estimates of $2.85, while revenue surged 14% to $10.2 billion, also topping forecasts.
Transaction Volumes Keep Climbing
Global payments volume on Visa-branded cards rose 8%, with U.S. volumes up 7% and international volumes climbing 10%. This growth underscores continued strength in both discretionary and everyday spending. For retail investors, these numbers show that Visa’s business model benefits directly from consumer activity regardless of economic uncertainty.
Shares Dip After-Hours — Opportunity?
Despite the earnings beat, Visa shares fell 2.6% in after-hours trading, likely due to profit per share coming in slightly below some estimates. However, the stock is up 12% year-to-date and recently hit an all-time high of $373.31, outperforming the S&P 500’s 9% gain. For long-term investors, a short-term pullback could present a buying opportunity.
Why Retail Investors Should Watch Visa
Consistent Growth: Double-digit revenue increase shows Visa’s network strength.
Global Reach: Rising cross-border and transaction volumes highlight international expansion.
Economic Barometer: Visa’s payment data is a direct reflection of consumer confidence and spending habits.
Bottom Line
Visa’s results show that consumer spending remains strong, even in a mixed economic backdrop. For retail investors, Visa’s ability to generate steady earnings and cash flow — regardless of market conditions — makes it a core long-term play in the payments space. Short-term dips could offer attractive entry points for those looking to add exposure to a dominant global brand.
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