KUALA LUMPUR, May 7 (Bernama) -- Bursa Malaysia closed marginally higher today, supported by continued buying in banking heavyweights following Bank Negara Malaysia’s decision to maintain the overnight policy rate (OPR) at 2.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.98 points, or 0.11 per cent, to 1,758.85 from Wednesday’s close of 1,756.87. The benchmark index, which opened 5.94 points higher at 1,762.81, moved between 1,758.42 and 1,768.46 during the day. Market breadth was positive with gainers beating losers 660 to 583. A total of 593 counters were unchanged, 815 untraded, and nine suspended. Turnover eased to 3.78 billion units worth RM4.24 billion, compared with 3.98 billion units worth RM3.97 billion yesterday.
Singapore’s REIT sector is facing renewed pressure, with the S-REIT Index down around 6% year-to-date , as rising bond yields and geopolitical risks reduce investor appetite for yield-sensitive assets. Rising Yields Narrow REIT Appeal The selloff comes as global bond yields trend higher , driven by inflation concerns linked to the Middle East conflict. Singapore’s 10-year government yield has risen about 20 basis points in March , reducing the relative attractiveness of REIT distributions. As a result, yield spreads are tightening , making REITs less compelling compared to fixed-income alternatives. Energy Shock and Growth Risks Weigh on Sentiment The ongoing conflict is expected to: Disrupt global energy supply Push inflation higher Slow economic growth These factors are weighing on REIT demand, particularly as the sector was only beginning to recover from the previous interest rate hiking cycle . Defensive Large-Cap REITs Preferred RHB r...