KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Key Takeaway: Crude oil prices rose after OPEC+ agreed to a smaller-than-expected production increase for October, while renewed concerns about Russian supply amid potential new sanctions added further support.
Market Snapshot
Brent crude: +0.33% to US$66.24/bbl
WTI crude: +0.39% to US$62.50/bbl
OPEC+ Decision
OPEC+ to raise October output by 137,000 bpd, far below:
~555,000 bpd in Aug–Sep
411,000 bpd in Jun–Jul
Move signals a partial reversal of cuts initially planned to stay until end-2026.
Analysts had expected larger hikes, making this decision a supply-side surprise supportive of prices.
Russia Sanctions Risk
Prices underpinned by speculation of new sanctions on Russia after the largest air attack on Ukraine since the war began.
U.S. President Donald Trump signaled readiness for a second phase of restrictions.
The EU’s top sanctions official met U.S. counterparts in Washington, raising the prospect of the first coordinated transatlantic sanctions package under Trump’s second term.
Any restrictions would tighten global supply further.
Macro Context
Traders eye the FOMC meeting next week, with an 89.4% chance of a 25 bps Fed rate cut priced in.
Lower rates typically support demand for oil by reducing borrowing costs and boosting economic growth.
Outlook
With OPEC+ delivering a measured supply increase and risks of disruptions from Russia, oil markets remain supported. Short-term direction will hinge on sanctions progress and U.S. Fed policy decisions next week.
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