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...
Key Takeaways:
Market Selloff: Jakarta Composite Index fell 2.3% intraday, closing down 1.3%, marking its sharpest fall since June 23.
Currency Weakness: Rupiah dropped 0.95% to 16,495/USD, before paring losses to -0.8% on suspected Bank Indonesia intervention.
Trigger: Violent protests in Jakarta, including a fatal incident, have raised political risk concerns and shaken investor sentiment.
Regional Context: Asian markets broadly cautious ahead of US inflation data, with most currencies weaker; the Philippines peso and South Korean won down 0.4%.
Broader Trend: Despite today’s fall, Jakarta benchmark remains +3.8% in August, following a strong rally since April.
Market Reaction
Equities: The Jakarta Composite Index (JCI) staged its steepest intraday drop in two months, as investors reacted to violent protests over lawmakers’ pay and education funding. Profit-taking was a clear theme following the JCI’s record high on Thursday.
Currency: The rupiah led regional declines, pressured by capital outflows, before stabilising after Bank Indonesia intervention across spot and offshore markets.
Political Unrest as Catalyst
The protests intensified after a motorcyclist was killed in clashes with police, raising domestic political tensions. The event has injected short-term volatility into an otherwise strong equity market, reminding investors of Indonesia’s sensitivity to political developments.
Regional Market Snapshot
Thailand: Shares slipped 0.2% as the Constitutional Court deliberates on PM Paetongtarn Shinawatra’s dismissal case.
South Korea & Philippines: Equities fell 0.4% and 0.6%, respectively.
Singapore & Taiwan: Both markets gained 0.4%, bucking the regional trend.
Currencies largely weakened across Asia:
Peso & Won: -0.4%.
Ringgit: -0.2%.
Singapore dollar & Taiwan dollar: flat.
Indian rupee: record low.
Global Macro Overlay
US Dollar: Index rose 0.2% Friday but remains -2% for the week, pressured by Fed rate cut bets.
Emerging Markets: The MSCI EM currency gauge gained 0.2% this week, while equities outside Japan traded flat, reflecting mixed risk sentiment.
Investor Takeaway
While the rupiah and equities faced a sharp pullback, today’s selloff appears to be profit-taking amplified by political protests, rather than a structural reversal. The JCI remains positive for August. That said, short-term volatilitywill likely persist until political tensions ease. Longer term, market resilience may hinge on stability in domestic politics and global macro drivers such as US monetary policy.
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