KUALA LUMPUR, May 21 (Bernama) -- Bursa Malaysia ended at its intraday low on Thursday as investor sentiment remained cautious amid ongoing foreign outflows, although the recent weakness may present bargain-hunting opportunities in fundamentally sound blue-chip counters. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.33 points, or 0.54 per cent, to 1,708.36, from yesterday’s close of 1,717.69. The benchmark index, which opened 3.74 points higher at 1,721.43, hit an intraday high of 1,722.50 in early trade before losing momentum for the rest of the day. Market breadth was negative, with losers outpacing gainers 656 to 508, while 565 counters were unchanged, 989 untraded and 32 suspended. Turnover fell to 3.49 billion units worth RM3.70 billion compared with 4.15 billion units worth RM4.29 billion on Wednesday.
Quick Summary
Global equities advanced as investors leaned on earnings optimism
Gold and silver hit fresh record highs on safe-haven demand
Oil prices jumped on renewed US–Iran tensions
Rate-cut expectations eased after the Fed signalled a prolonged pause
Stocks Hold Firm on Earnings Optimism
World shares edged higher on Thursday as markets looked to corporate earnings to support valuations, even as expectations for near-term US rate cuts faded.
Euro STOXX 600 rose 0.5%, supported by strength in energy and basic resources
UK, France and Spain posted gains, while Germany slipped 0.6%
S&P 500 and Nasdaq futures rose around 0.3% each
Investors are closely watching results from Apple, with analysts at JPMorgan expecting earnings to beat consensus, driven by stronger-than-expected iPhone 17 demand and slower cost growth.
Fed Signals: Last Cut May Be Behind Us
The Federal Reserve left interest rates unchanged, as expected. Chair Jerome Powell described the economic outlook as “clearly improving” and confirmed broad support for a policy pause.
Markets responded by:
Cutting the probability of a rate cut by April to 26%
Pricing June as the next realistic window
Deutsche Bank said risks are now balanced around the expectation of just one rate cut in September, calling it potentially the final cut of the cycle.
Big Tech: AI Spending vs Profits
Tech earnings delivered mixed signals:
Microsoft slid 6.5% on concerns that heavy AI-related capex may not deliver sufficient returns
Meta surged 8% after hours after lifting both revenue and capex guidance for 2026, adding about US$140 billionin market value
Analysts noted that while AI spending is accelerating, investors are increasingly demanding clear earnings payoff.
Gold Blazes Higher, Oil Jumps on Geopolitics
Gold surged 2.5% to US$5,536/oz, up 28% this month alone
Silver also climbed to a fresh high
Europe’s basic resources index jumped 3%, the highest since 2008
Oil prices rose to four-month highs after Donald Trump warned Iran of possible attacks if nuclear talks fail:
Brent crude: +1.5% to US$69.44
US crude: +1.7% to US$64.26
Asia Mixed, Indonesia Still Under Pressure
MSCI Asia-Pacific ex-Japan index was flat
South Korea climbed 0.6%, taking January gains to 23%
Taiwan is up nearly 13% this month
Indonesia fell for a second session after MSCI raised concerns over ownership and transparency, prompting Goldman Sachs to cut its rating
Dollar Slips as Policy Uncertainty Grows
The US dollar stayed weak:
Dollar index at 96.17, near a four-year low
Euro rose to US$1.1979
Dollar weakened against the yen and Swiss franc
US Treasury Secretary Scott Bessent reiterated support for a “strong dollar,” even as global officials voiced concern over the currency’s slide.
Bottom Line
Earnings are now the main pillar supporting global equities, as hopes for rapid rate cuts fade. With gold at record highs, oil rising on geopolitics, and the dollar under pressure, markets are navigating a complex mix of strong profits, tighter monetary reality, and political risk.
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