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 Overview
Singapore: Straits Times Index (STI) opened higher at 4,263.99 (+0.26%), with 152 advancers vs. 20 decliners.
U.S.: Stocks surged Friday after Powell signaled a dovish pivot at Jackson Hole.
Global: Canada eases U.S. trade tensions by dropping certain USMCA-compliant tariffs.
U.S. Markets – Fed Pivot Lifts Wall Street
Powell’s Remarks: Suggested a possible rate cut in September, citing inflation risks and a weakening labor market.
Jobs Data: July added 73K jobs, well below expectations, with sharp downward revisions for prior months.
Market Reaction:
Dow Jones: +1.9% to 45,631.74 (over +800 points)
S&P 500: +1.5% to 6,466.91
Nasdaq: +1.9% to 21,496.53
Sectors: Consumer discretionary, energy, and communication services led; consumer staples lagged.
Rate Cut Odds: FedWatch tool shows 85% probability of 25bps cut in September, up from 75% a day earlier.
Investor Takeaway: Equities may gain near term on Fed pivot hopes, but inflation remains a risk to further easing.
Singapore Markets – Institutional Outflows Continue
Institutional Flow: Net outflow of S$53M (Aug 15–21), following S$465M the prior week.
Key Outflows: Sembcorp Industries, DBS, CapLand Ascendas REIT, ST Engineering, ComfortDelGro.
Key Inflows: Singtel, Jardine C&C, SGX, YZJ Financial, OCBC Bank.
Buybacks: 22 firms repurchased S$62.5M in shares. Keppel led with 2.77M shares at avg S$8.35.
Investor Takeaway: Selective accumulation in banks and telcos, but overall institutional sentiment still cautious.
Regional & Sector Highlights
Canada: Drops 25% tariffs on USMCA-compliant U.S. goods starting Sept 1, easing trade tensions.
Private Capital: Singapore led SEA in Q2 2025 with 33 deals worth US$3.86B, nearly half the region’s total.
Property Market: Q2 2025 private residential leasing rose 2.8% to 21,330 units. Rents up 0.8%, with strong demand for larger homes.
Stocks to Watch
Mapletree PanAsia Com Tr (N2IU.SG): Completed divestment of TS Ikebukuro Building.
First Resources (EB5.SG): Launches mandatory tender offer for Austindo Nusantara Jaya’s remaining 6.2%.
Sabana REIT (M1GU.SG): Appoints new management team led by Karen Lee (ex-ALog Trust).
Lum Chang (L19.SG): Forms JV with L&K Engineering for Singapore project (30%-70% split).
Raffles Edu (NR7.SG): Disputes S$6.2M tax claim, calls it baseless.
Creative (C76.SG): Narrows net loss to $4.4M (vs. $6.8M prior year) after layoffs; revenue slipped 3% to $30.1M.
Key Takeaways for Investors
Fed Pivot Boosting Risk Appetite: Expect volatility as markets price in a September cut.
Singapore Outflows Ongoing: But inflows into Singtel, banks, and SGX suggest selective opportunities.
Property Market Stabilizing: Rental demand improving, especially for larger units.
Corporate Actions in Focus: Buybacks, acquisitions, and management reshuffles could drive stock-specific moves.
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