KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Asian equities extended gains on Thursday as optimism over a potential extension of the US-Iran ceasefire drove investors back into risk assets, while easing oil prices helped reduce inflation concerns.
Equities Rebound Toward Pre-War Levels
The MSCI Asia-Pacific Index rose 1%, approaching levels seen before the Middle East conflict began.
- Regional markets, including Singapore, Taiwan, and China, have largely recovered war-driven losses
- China’s CSI 300 Index held gains after stronger-than-expected economic growth
The rally reflects a broad shift back into equities, supported by improving geopolitical sentiment and strong corporate earnings.
Oil Stabilises Below US$100, Easing Inflation Pressure
Brent crude held around US$95 per barrel, well below last month’s peak near US$120.
Lower oil prices are helping to:
- Reduce inflation expectations
- Support bond markets, with US Treasury yields easing slightly
- Improve outlook for global economic growth
This has been a key driver behind the risk-on rotation across global markets.
US Markets Hit Record Highs on Tech Strength
Wall Street continued its upward momentum:
- S&P 500 and Nasdaq 100 both reached record highs
- The Nasdaq 100 extended its longest winning streak since 2019
Gains were supported by strong earnings from major banks and a rotation within tech stocks, with investors shifting from chipmakers to software names.
Dollar Weakens as Safe-Haven Demand Fades
The US dollar weakened, with the Bloomberg Dollar Spot Index on track for its longest losing streak since 2006.
This reflects:
- Reduced demand for safe-haven assets
- Increased confidence in a potential diplomatic resolution
Ceasefire Extension Key to Market Direction
Reports suggest the US and Iran are considering a two-week extension of the ceasefire, allowing more time for negotiations on critical issues such as:
- Reopening the Strait of Hormuz
- Addressing nuclear-related concerns
Markets are increasingly pricing in a de-escalation scenario, though uncertainties remain.
Investor Takeaways
- Asian equities are rebounding, nearing pre-war levels on ceasefire optimism.
- Oil prices below US$100 are easing inflation concerns and supporting global markets.
- US indices hitting record highs reflect strong earnings and renewed tech momentum.
- The US dollar is weakening, signaling reduced risk aversion.
- Further market direction will depend on progress in US-Iran negotiations and oil price trends.
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