KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Key Takeaways:
NFIB optimism index rose to 100.8 in August, the highest since January.
Sales expectations drove the increase, with a net 12% of owners anticipating higher retail volumes—the best reading in six months.
Price pressures easing: Only 21% of firms raised prices, the lowest share this year.
Labour quality remains the top concern, but job openings fell to their lowest level since 2020.
Sales Outlook Lifts Sentiment
The National Federation of Independent Business (NFIB) reported that small-business optimism improved modestly in August, advancing 0.5 points to 100.8. The index was supported by stronger sales expectations and a more favorable view of business health.
68% of owners rated their business health as “excellent” or “good,” an improvement from July.
A net 12% expect higher sales volumes, up six points from the prior month.
Inflation Pressures Ease, But Expansion Plans Slow
The survey indicates that import duties are starting to influence pricing, yet firms’ pricing power appears to be moderating:
21% raised prices, the lowest reading this year.
Fewer firms also plan to raise prices in the next three months.
Despite supportive tax policy under the new “One Big Beautiful Bill,” only 21% of owners plan capital expenditures in the next six months, down slightly from July.
Business Conditions and Uncertainty
A net 34% of owners expect better business conditions, down two points from July but still elevated relative to recent history.
The NFIB uncertainty index fell four points to 93, reflecting reduced uncertainty around financing and capital spending, though it remains one of the highest readings in five decades.
Labour Market: Constraints Easing
Labour quality remains the top concern for 21% of small businesses, unchanged from July. However, signs of easing appear:
Unfilled job openings fell to 32%, the lowest since December 2020, suggesting gradual relief in hiring pressures.
Outlook for Investors
The latest NFIB data point to a healthier small-business backdrop, with sales expectations rebounding and pricing pressures cooling. However, weak capital expenditure intentions and persistent labour quality issues temper the outlook.
Bottom Line: The report supports the narrative of a softening but resilient US economy—a backdrop that could reinforce expectations of Fed rate cuts while keeping inflation risks in check.
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