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...
Market Snapshot
Malaysian technology counters surged on Monday, tracking a regional rally as dovish signals from the US Federal Reserve lifted optimism for a September rate cut.
Bursa Malaysia Technology Index: +2%, highest since Feb 24, 2025.
Malaysian Pacific Industries (MPI): Jumped as much as 9% to RM27.74, despite lingering earnings concerns.
The move comes as capital inflows into Asia intensified, with investors positioning for potential monetary easing in the US.
Drivers of the Rally
Fed Pivot Hopes:
Fed Chair Jerome Powell’s Jackson Hole remarks — that the outlook “may warrant adjusting the policy stance” — reinforced bets for a 25bps September rate cut.
Lower rates reduce funding costs for capital-intensive tech firms and support growth-sector valuations.
Wall Street Lead:
Sentiment was buoyed by strong gains in the Magnificent Seven (Alphabet, Amazon, Apple, Broadcom, Meta, Microsoft, Nvidia) last Friday.
AI-related optimism continues to drive global tech appetite.
Emerging Market Flows:
Dovish Fed expectations encourage capital inflows into EMs, strengthening the ringgit and improving prospects for Malaysia’s growth-oriented sectors.
Earnings Watch
Investor focus now turns to Nvidia’s Aug 27 results, which could be pivotal for sustaining the global AI-driven rally. Stronger-than-expected earnings may spark another leg higher for AI-related stocks, while any disappointment could trigger a pullback.
Other notable tech earnings on the horizon: CrowdStrike, HP, Snowflake, Alibaba.
Investment Takeaways
Sector Momentum: Malaysian tech is benefiting from global AI enthusiasm and Fed pivot optimism, but near-term moves remain event-driven (e.g., Nvidia’s results).
Valuation Support: Lower borrowing costs could drive a re-rating of Malaysian chip and semiconductor players like MPI, Vitrox, Inari Amertron.
Risks:
A weaker-than-expected AI earnings season could spark corrections.
Domestic earnings softness still lingers for some names despite price momentum.
Ringgit volatility may affect foreign fund flows.
Bottom Line
Malaysian tech stocks are riding the global wave of AI optimism and Fed-driven liquidity hopes, with the Bursa Tech Index hitting a six-month high. Investors should watch Nvidia’s earnings closely, as it may decide whether this rally extends or fades.
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