KUALA LUMPUR, Jan 28 (Bernama) -- Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25. The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session. Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended. Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday's 3.58 billion units worth RM4.46 billion.
US equities opened the week modestly higher as investors positioned for a heavy catalyst stack — led by Big Tech earnings, the Federal Reserve policy decision, and rising political risk premiums.
At the same time, gold surged above US$5,000/oz, reinforcing that risk appetite remains fragile and selective, not outright bullish.
Market Snapshot (Early US Session)
S&P 500: +0.39%
Dow Jones: +0.45%
Nasdaq: +0.23%
Breadth was positive, but gains were measured, reflecting caution ahead of event risk.
Key Themes Driving Markets
1. “Magnificent 7” Earnings: The AI Payoff Test
This week marks a critical checkpoint for the AI trade.
Four Mega-cap names — Apple, Microsoft, Meta Platforms, and Tesla — report results.
What markets want:
Evidence that AI capex is translating into revenue
Reassurance on margins, not just growth
Forward guidance that justifies elevated valuations
With positioning crowded, guidance matters more than beats.
2. Fed Meeting: Rates on Hold, Credibility in Focus
The Federal Reserve is widely expected to hold rates steady this week.
However, markets are increasingly sensitive to:
Political pressure on Chair Jerome Powell
Questions around central bank independence
Timing of the next Fed chair nomination
Key risk:
Any hint of politicisation or policy uncertainty could reignite volatility, even if rates stay unchanged.
3. Gold at Record Highs = Quiet Risk Signal
Gold breaking above US$5,000/oz is not a coincidence.
Signals persistent hedging demand
Reflects concerns over fiscal dominance, geopolitics, and policy credibility
Supports materials and mining equities, which outperformed
This is not a classic “risk-on” rally — it’s a barbell market.
4. Political Risk Back on the Radar
Rising odds of a US government shutdown ahead of the Jan 30 funding deadline
Senate opposition to DHS funding increases headline risk
Adds to near-term uncertainty, particularly for defensive and policy-sensitive sectors
Notable Stock Moves
Gold miners surged alongside bullion
Airlines fell after major winter storm disruptions
Intel extended losses after weak guidance
USA Rare Earth jumped on reports of US government investment
CoreWeave rallied after Nvidia announced a US$2bn investment
Investor Takeaways
Market Tone
Cautiously constructive, but fragile
Upside driven by earnings validation
Downside risk tied to policy and political noise
What to Watch This Week
Big Tech guidance → validates or challenges AI valuations
Fed messaging → tone matters more than rates
Gold vs equities divergence → tells you whether this rally is durable
Positioning Strategy
Overweight quality AI leaders with proven monetisation
Maintain gold / materials exposure as hedge
Avoid over-levered cyclicals until macro clarity improves
Bottom Line
This is not a momentum-driven market — it’s an earnings-and-credibility market.
Stocks can grind higher, but only if fundamentals do the heavy lifting.
Any disappointment from Big Tech or the Fed risks outsized reactions.
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