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.
Goldman Sachs analyst Isabella Rosenberg suggests that the upcoming interest rate cuts by the Federal Reserve (Fed) may not significantly weaken the US dollar, as other central banks are also easing their monetary policies. Historically, synchronized rate cuts among major central banks have been associated with a stronger dollar. Key Takeaways: Limited Downside for the US Dollar : According to Rosenberg, the impact of Fed rate cuts on the US dollar will likely be limited due to concurrent easing by other central banks, including the European Central Bank and the Bank of England. The coordinated nature of these rate cuts reduces the pressure on the dollar, which typically faces depreciation when the Fed cuts rates in isolation. Impact of Synchronized Easing : Rosenberg’s analysis, based on rate cuts since 1995, shows that when most central banks ease together, the effect on the US dollar is mitigated. Even as the market anticipates a faster shift from the Fed, Goldman Sachs believes oth...