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.
A hawkish shift by the Federal Reserve has unsettled bullish sentiment in the stock market, with Bank of America strategist Michael Hartnett warning of shaky risk appetite as US equities face their worst week in over three months . Key Highlights 1. Fed's Impact on Sentiment Fed Pivot : A renewed focus on inflation concerns and fewer expected rate cuts in 2025 have dampened investor confidence. Stock Allocation Surge : Record-high allocations to US equities and low cash holdings triggered a sell signal for stocks earlier this week, according to BofA's fund managers survey . 2. Market Breadth Concerns Narrow Leadership : The S&P 500 Equal Weighted Index has dropped 7% since a November peak, while the main S&P 500 declined less than 3% , indicating reliance on a few top-performing stocks. Banking Sector's Role : The SPDR S&P Bank ETF must hold near...