KUALA LUMPUR, Aug 19 (Bernama) -- Bursa Malaysia ended lower on Wednesday, as elevated United States (US) Treasury yields and weakness in technology stocks weighed on investor sentiment, an analyst said. However, gains in healthcare and telecommunications stocks provided some support to the broader local market. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.04 points, or 0.12 per cent, to 1,731.32 compared with Tuesday’s close of 1,733.36. The benchmark index opened 1.39 points weaker at 1,731.97, and fluctuated between 1,725.95 and 1,733.44 throughout the day. On the broader market, losers outpaced gainers 701 to 478, while 563 counters were unchanged, 1,131 untraded and 16 suspended. Turnover shrank to 3.31 billion units valued at RM2.92 billion from 3.74 billion units valued at RM2.91 billion on Tuesday.
US investors are keeping a record $7.7 trillion parked in money-market funds, showing little urgency to shift into stocks even as markets hit fresh highs and the Fed eases rates.
Market Snapshot
Money-market fund assets reached a record $7.7 trillion last week.
$60 billion inflows in the first week of September alone (Crane Data).
Trend began in 2022 during Fed rate hikes, when yields on short-term debt surged.
Stock indices remain near records (.SPX +0.49%, .DJI +0.37%), but cash allocations stay elevated.
Why It Matters
Attractive yields: Money-market funds still pay far more than in the 2010s/early 2020s when rates were near zero.
Investor caution: Many prefer stability and liquidity, waiting for potential stock pullbacks.
“Wall of cash” effect: $7.7 trillion represents dry powder that could enter equities if sentiment shifts, potentially fueling strong market moves.
Expert View
Peter Crane, President of Crane Data, described the situation as a “wall of cash” that isn’t leaving soon. Despite rate cuts, yields remain historically high, keeping money parked in cash-like instruments.
Key Takeaway
Investors remain cautious, prioritizing liquidity over chasing stock gains. With trillions in reserve, markets could see a powerful boost if this capital rotates back into equities — but for now, the money stays on the sidelines.
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