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...
Malaysia’s Leading Index (LI) signaled slower economic momentum in July, with annual growth dipping 0.5% year-on-year to 114.3 points, according to the Department of Statistics Malaysia (DOSM).
Drivers of the Decline
The weaker reading was weighed down by:
Real Imports of Other Basic Precious & Non-Ferrous Metals: –16.3% YoY.
Bursa Malaysia Industrial Index: –13.4% YoY.
On a monthly basis, however, the LI rose 0.5% MoM, rebounding from June’s 0.3% decline, thanks to stronger contributions from semiconductor imports, new company registrations, and approved housing units.
Coincident Index Shows Stronger Current Activity
The Coincident Index (CI), which tracks current economic performance, climbed 2.2% YoY in July, faster than June’s 1.7%. It reached 129.7 points, supported by broad-based improvements, particularly:
Real Contributions to EPF: +5.4% YoY.
Industrial Production Index: +0.3% MoM.
Manufacturing sector indicators — employment, salaries, and capacity utilization each rose 0.2% MoM.
Outlook: Growth to Moderate
The smoothed long-term trend shows the LI remains below 100.0 points, reinforcing expectations of slower momentum ahead.
External trade remains under pressure due to softer demand from major trading partners.
Domestic consumption is expected to cushion growth, supported by:
Low and stable inflation.
Rising wages.
Strong tourism recovery.
Recent monetary policy easing.
Key Takeaway
While Malaysia’s external-facing sectors face headwinds, household spending and services should provide resilience, keeping the economy on track for modest expansion despite global uncertainties.
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