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.
Kenanga Research’s analysis of Malaysia’s new “Appreciation Package” highlights both short-term economic benefits and long-term fiscal challenges: Key Measures: RM100 cash aid (Sumbangan Asas Rahmah – SARA Untuk Semua) for all eligible Malaysians. Reduction in RON95 petrol prices to RM1.99/litre (from RM2.05) for eligible groups. Package cost estimated at RM2.8 billion (~0.14% of GDP) . Economic Impact: ✅ Boost to private consumption in 2H25, supporting GDP growth at 4.3% (vs. 5.1% in 2024). ✅ Expected to offset trade risks from global tariffs and support domestic demand. ✅ Inflation forecast revised down to 1.7% (from 2.0%) due to fuel price cuts. Fiscal Trade-offs: ⚠️ Fiscal deficit for 2025 projected at 4.1% of GDP , exceeding the initial 3.8% target. ⚠️ Government debt expected to hit RM1.33 trillion (65.9% of GDP) , potentially breaching the statutory debt ceiling (65%). Fuel Subsidy Reform: T...