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.
An anticipated US policy rate cut this week is expected to positively impact Malaysian stocks, particularly in the oil and gas (O&G) , real estate investment trust (REIT) , and large-cap banking sectors , according to Kenanga Investment Bank . Historically, US rate cuts have been favorable for the FBM KLCI , yielding a median return of 8% over a 12-month period following the cut. The index has shown negative returns over a 12-month horizon on only three occasions out of the past ten rate cuts, the research house noted. "As all eyes this week will be on the US at the cusp of a rate decision, sentiment on broader equities will hinge not only on the extent of the cut but more so on the US Federal Reserve's (Fed) outlook ," Kenanga stated. The Fed is expected to announce its first rate cut in more than four years on Wednesday, though there is debate over the size of the reduction as inflation has eased and the employment market has cooled. The FBM KLCI has already gai...