Oil breaks US$100, Wall Street retreats and bond yields rise, inflation is becoming the market’s biggest risk again Global markets are starting Thursday in a more defensive position. Brent crude has broken above US$100 a barrel , U.S. Treasury yields are pushing higher, and Wall Street fell for a third straight session as investors reassess whether central banks may need to keep tightening rather than easing. For Malaysian investors, the key chain today is increasingly clear: Oil → inflation → interest rates → bond yields → USD/MYR → Bursa valuations. 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,636.36, -0.48% 🇺🇸 Dow Jones 52,380.66, -0.77% 🇺🇸 Nasdaq 26,253.34, -0.64% 🇲🇾 FBM KLCI 1,714.34, virtually flat 💵 USD/MYR ~4.06 🇺🇸 U.S. 10Y Treasury ~4.84% 🇺🇸 U.S. 2Y Treasury ~4.42% 🥇 Gold ~US$4,396/oz 🛢️ Brent crude US$101.21/bbl 🛢️ WTI crude US$96.05/bbl ₿ Bitcoin ~US$79,300 🇯🇵 Nikkei ~64,760, -0.6% this morning Brent jumped about 3.4% Wednesda...
FBM KLCI Rises as Regional Peers Struggle
Malaysia’s benchmark index, the FBM KLCI, rose 0.33% to close at 1,590.24, outperforming most regional markets as broad-based buying supported sentiment. Despite a mixed broader market—503 gainers versus 490 losers—the upward momentum has encouraged optimism, with Rakuten Trade projecting the index could extend gains to 1,620 if current momentum continues.
Investor sentiment was buoyed by developments in international diplomacy, including President Trump’s initiative to mediate between Russia and Ukraine, offering a slight geopolitical reprieve.
Malaysia’s Macro Outlook Remains Constructive
CIMB economists Vincent Loo and Azri Azhar forecast Malaysia’s GDP growth at 4.3% in 2025, supported by:
Resilient household spending
Continued growth in private investment
Strength in the electrical and electronics (E&E) sector
Recovery in tourism
They expect Bank Negara Malaysia (BNM) to maintain the Overnight Policy Rate (OPR) at 2.75% in September, while November’s decision will hinge on macro developments.
US Market Volatility Sparks Tech Rotation
Wall Street experienced turbulence, with the Nasdaq falling 1.46% and the S&P 500 down 0.59%, led by sharp declines in tech names such as Palantir and AMD. In contrast, investors rotated into defensive sectors like utilities and healthcare, while Home Depot posted a strong rebound following its earnings release and strategic pricing shift.
Notably, the Commerce Department expanded 50% tariffs to 400+ steel and aluminum products, adding pressure on industrial and manufacturing equities globally.
Stock Highlights
SUNCON: MACC confirms investigation is isolated to a single employee; operational risk deemed contained.
CYPARK: Secures RM1.3 billion Islamic financing from MBSB Bank to refinance RE assets, enhancing capital structure.
SRIDGE: Cyberjaya data centre JV collapses after SIC withdrawal.
KNM: Unveils PN17 regularisation plan involving €270 million asset sale and capital restructuring.
PESTEC: Triggers PN17 after equity falls below threshold based on FY2025 audited accounts.
FAREAST: 2QFY25 net profit slips 3% despite 34% revenue growth; six sen dividend declared.
TEOSENG: Records 60% YoY net profit growth in 2QFY25, aided by government egg subsidies.
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