KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
The Nasdaq and S&P 500 fell on Wednesday as the Magnificent 7 tech giants led declines, while the Federal Reserve’s July minutes pointed to a split on the path forward for monetary policy.
Key Index Performances
Nasdaq Composite: -0.8% to 21,172.86
S&P 500: -0.2% to 6,395.78
Dow Jones Industrial Average: +0.06% to 44,938.31
While the Dow managed a narrow gain, risk appetite was clearly weaker in growth-heavy indices.
The Magnificent 7 Lead the Retreat
Apple (AAPL): -1.97%
Intel (INTC): -6.99%
Nvidia (NVDA): -0.14%
Amazon (AMZN): -1.84%
Other top underperformers included Micron (MU), with tech, consumer discretionary, and communication services sectors all ending in the red. Energy stocks, on the other hand, emerged as the top gainer, buoyed by rising oil prices.
Fed Minutes: Mixed Signals, Lingering Inflation Concerns
The July 29–30 FOMC meeting minutes revealed a division among Fed officials:
Some focused on inflation risks
Others flagged concerns about employment and economic growth
Most agreed that inflation pressures remain dominant in guiding rate decisions
Clarity on the impact of tariffs on inflation remains a key uncertainty.
Bond Market Reaction:
10-Year Yield: ↓ 1.5 bps to 4.29%
2-Year Yield: ↓ 1 bps to 3.74%
Treasuries showed modest gains, reflecting investor caution ahead of the Jackson Hole Symposium and Powell's speech on Friday.
Generative AI: Hype vs. Reality?
A note from MIT Media Lab’s Project NANDA reports:
“Only 5% of generative AI pilots deliver tangible business value,”despite $30–40 billion spent on the tech. This echoes recent cautious sentiment in the AI space, possibly fueling investor skepticism toward high-growth names.
Other Highlights
Crude Oil (WTI): +1.3% to $63.14/barrel, supporting value plays in energy.
- Geopolitical News:The Trump administration is pushing a diplomatic meeting between Russia and Ukraine, according to the White House—another wildcard that may influence global sentiment.
Investment Implications
Rotation in Play: Investors are trimming exposure to stretched tech valuations while shifting into value sectorslike energy and potentially healthcare.
Fed Caution: The policy path remains data-dependent, but inflation hawks still hold sway.
AI Reality Check: The AI investment narrative is facing a moment of reassessment, especially among less-proven names.
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