KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
Summary
Global markets rebounded as oil prices fell sharply on renewed hopes of a Middle East ceasefire, easing inflation fears and supporting equities. However, volatility remains high as negotiations are still uncertain.
Oil Slides, Markets Turn Positive
Oil prices declined significantly:
- Brent crude fell over 4%, slipping below US$100 per barrel
- The drop reflects reduced geopolitical risk premium
Asian equities responded positively, with markets in Japan, South Korea, and Australia advancing. US futures also climbed more than 0.7%.
Key Point: Falling oil prices are easing inflation concerns and boosting global equities
Ceasefire Talks Drive Optimism
Sentiment improved after reports of diplomatic progress:
- US reportedly sent Iran a 15-point proposal
- Discussions ongoing for a potential 30-day ceasefire
- High-level peace talks may begin soon
Despite this, the situation remains fluid, with ongoing military activity and uncertainty over Iran’s response.
Key Point: Markets are reacting to headlines, not confirmed outcomes
Inflation Pressures Ease, Dollar Weakens
- Bloomberg Dollar Index: -0.2%
- US 10-year Treasury yield: 4.34% (slightly lower)
- Gold rose to around US$4,550
- Bitcoin climbed to ~US$70,500
Lower oil prices are reducing expectations of further rate hikes, supporting both equities and alternative assets.
Key Point: Lower yields and weaker dollar reflect easing inflation expectations
Strait of Hormuz Remains the Key Risk
The biggest uncertainty remains the critical energy route:
- Iran still controls access to the Strait of Hormuz
- Transit restrictions and new fees signal continued tension
- Full reopening remains the key trigger for sustained market recovery
Key Point: Market stability depends heavily on oil supply normalization
Other Risks Emerging
Beyond geopolitics, financial stress is building elsewhere:
- Large firms like Ares Management and Apollo Global Management restricted investor withdrawals
- Signals growing strain in the US$1.8 trillion private credit market
Key Point: Hidden financial risks could resurface even if geopolitical tensions ease
Conclusion
Markets are stabilising as oil retreats and ceasefire hopes build, but the situation remains highly uncertain. Investors are closely watching developments around the Strait of Hormuz and diplomatic progress.
Key Point: This remains a headline-driven market, with oil prices dictating short-term direction
Comments
Post a Comment