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.
Spending to See Strong Growth BMI expects Malaysian consumer spending to rise 3.8% in 2025 to MYR930.7 billion , followed by 5.0% growth in 2026 reaching MYR977.3 billion . This rebound brings spending close to pre-Covid growth levels, supported by a healthier labour market and monetary easing. Low Inflation and Rate Cuts Support Demand Headline inflation is forecast to average 1.9% in 2025 and 2.2% in 2026 , providing households with stronger purchasing power. June 2025 inflation slowed to 1.1% YoY , the lowest since February 2021. Bank Negara Malaysia’s 25bps rate cut in July 2025 to 2.75% — the first in five years — is expected to ease borrowing costs and encourage spending. Another rate cut to 2.50% is projected by end-2026. Labour Market Strengthens Purchasing Power Unemployment remains low at 3.0% , its best level in a decade, and is forecast to average 3.1% over 2025–2026 . Comb...