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.
Brazil's economy is growing faster than expected, with GDP expanding 3.3% in the second quarter, outpacing regional peers. However, Morgan Stanley strategist Nikolaj Lippmann cautions that this growth is bad news for Brazilian equities . The robust economic growth is being driven by increased fiscal spending , which is fueling inflation and prompting the central bank to maintain high interest rates, thereby weighing on the stock market. Lippmann explained that Brazil’s growth is being fueled by debt, with the nominal budget deficit reaching 9.8% of GDP as of August and gross debt rising to 78.5% of GDP, up from 71.7% at the end of 2022. As a result, Brazil’s high debt levels are limiting investment in riskier assets like equities. The central bank’s benchmark interest rate is expected to rise to 13.25% by July 2025, further discouraging stock market investments in favor of fixed income, which is offering double-digit returns . Foreign investors have also been withdrawin...