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.
Malaysia’s automotive market is expected to maintain stable growth in the affordable car segment , while the mid-market segment may face challenges due to the rollout of e-invoicing and potential changes in fuel subsidy policies , according to Kenanga Research . While the overall industry continues to enjoy solid demand, with a backlog of 160,000 units as of the end of August, Kenanga Research highlighted a “two-speed automotive market” through 2024. The research firm’s top pick in the sector is MBM Resources Bhd , which has significant exposure to Perodua , benefiting from a backlog of over 100,000 units and a 7% dividend yield . The firm has an outperform rating on MBM Resources with a target price of RM6.30 . The B40 segment, which is targeted by affordable car brands, is likely to be unaffected by fuel subsidy rationalization and may benefit from the progressive wage model and civil servant pay rises scheduled for December 2024. This increase will help civil servants reco...