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Market Daily Report: Bursa Malaysia Closes Higher On BNM’s OPR Decision, Wall Street Gains

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.

BNM’s Rate Cut Lifts Market Mood, But REIT Gains May Be Capped

Bank Negara Malaysia’s (BNM) surprise move to cut the  Overnight Policy Rate (OPR) by 25 basis points to 2.75%  — its first reduction since 2023 — has boosted overall sentiment. However, analysts believe the positive impact on  Malaysian REITs (Real Estate Investment Trusts)  will be  modest . Key Rate Action BNM lowered OPR to 2.75%  (from 3.00%) on Wednesday. Move seen as  pre-emptive  to support growth amid global uncertainties. Roughly  half of economists polled by Bloomberg  anticipated this cut. What Analysts Say Public Investment Bank Minimal earnings impact (only  1%-2% ) for REITs with floating-rate borrowings. Maintains  neutral stance . Target price for IGB REIT  raised to  RM2.50 (from RM2.10)  following Mid Valley Southkey mall acquisition. RHB Investment Bank Maintains “Overweight”  on REITs. Strong domestic consumption and lower bond yields still support sector performance. Risks from  SS...