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.
US stocks continued their record-setting rally on July 24, lifted by growing hopes for a US-EU trade deal and the recent breakthrough agreement with Japan. The S&P 500 hit an all-time high, while demand for safe-haven assets like Treasuries and the dollar slipped.
Key Market Drivers:
- US-EU Trade Talks ProgressingDiplomats are working to finalize a deal that would impose a 15% tariff baseline, avoiding the more punitive 30% rate expected August 1. The Japan deal—featuring billions in investments and tariff relief—has become a blueprint for EU negotiations.
- Strong Market SentimentAnalysts note low volatility and rising prices—a “don’t short a dull tape” environment, according to Nationwide’s Mark Hackett.Jose Torres (Interactive Brokers) says “animal spirits” are back, as trade progress is fueling earnings optimism.
Mixed Earnings After-Hours
Alphabet beat revenue estimates but flagged higher capex.
Tesla missed expectations.
Bond Market Reaction
10-year Treasury yields rose to 4.39%, breaking a five-day rally.
Weak demand seen in Japan’s 40-year bond auction—the lowest since 2011.
Traders are now pricing in 75bps of Fed rate cuts for 2026 (vs. 25bps in April).
Institutional Outlook
BMO: Trade clarity could reignite market confidence.
JPMorgan: Warns of complacency risk as equity rallies coincide with earnings downgrades.
Navellier & Associates: Despite high valuations, the trend is positive, with tech expected to lead this earnings season.
“Earnings continue to deliver better-than-average beats,” says Louis Navellier.
Investor Takeaway:
Short-term catalyst: EU trade deal optimism + earnings beats = upside.
Medium-term focus: Rate cut bets are back in play. Bond traders are positioning for more aggressive Fed easingin 2026.
Risk: Market could be ignoring the gap between sentiment and fundamentals, leading to possible volatility.
Bottom Line: The rally still has legs if trade talks succeed and earnings hold up—but complacency is creeping in. Stay selective and watch macro headlines closely.
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