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...
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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