Malaysia Morning Wrap | Fed Holds Rates Steady; YTL Power to Launch Malaysia's First Nvidia Supercomputer in July
Good morning mooers! Here are things you need to know about today's market:
U.S. stocks rose as Powell downplayed tariff concerns and kept policy steady.
Malaysian stocks fell Wednesday, led by declines in construction and banking sectors.
Stocks to watch: SAMAIDEN, YTLPOWR, etc.
- Moomoo News MY
Wall Street Summary
$S&P 500 Index (.SPX.US)$ 5,675.29 (+1.08%)
$Dow Jones Industrial Average (.DJI.US)$ 4,1964.63 (+0.92%)
$Nasdaq Composite Index (.IXIC.US)$ 17,750.79 (+1.41%)
On Wednesday, the Nasdaq, S&P 500, and Dow Jones rose as investors embraced the Federal Reserve’s economic outlook.
The Fed kept its key rate at 4.25%-4.5% and signaled two possible rate cuts in 2025. The FOMC noted solid growth and a strong job market, though it raised its core PCE inflation forecast to 2.8% from 2.5% and cut its 2025 growth estimate to 1.7% from 2.1%.
Jerome Powell downplayed recession fears as “not high” and called tariff-related inflation risks “transitory,” boosting confidence. The Fed also plans to slow its balance sheet reduction from April, supporting market liquidity.
Bursa Market Insight
Bursa Malaysia's main index closed lower Wednesday, with construction and banking sectors leading the decline. Healthcare stocks showed some resilience.
Analysts attributed the drop to a lack of positive catalysts. They noted that investors remain cautious due to potential U.S. tariff increases and ongoing Russia-Ukraine peace talks.
The $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ failed to hold the 1,520 level, with 1,500 seen as the next support. Despite the pullback, market analysts expect bargain hunting in fundamentally strong stocks, projecting the index to trade between 1,500 and 1,530 for the rest of the week.
$CIMB (1023.MY)$ faced significant pressure as concerns over Indonesia's economic stability spilled over. The bank, which derives about 25% of its earnings from its Indonesian subsidiary CIMB Niaga, saw its share price drop over 4% to RM6.93, making it the largest decliner among the FBM KLCI's 30 constituent stocks.
Analysts note that CIMB's exposure to Indonesia makes it particularly vulnerable to the recent market turbulence. The sell-off in Indonesian stocks, triggered by political speculation and economic concerns, has had a ripple effect on Malaysian companies with significant Indonesian operations.
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Stocks to Watch
$YTLPOWR (6742.MY)$ plans to unveil Malaysia's first Nvidia supercomputer by early Q3 2024. The system, featuring Nvidia's latest Blackwell platform, will be housed at YTL's Green Data Centre in Johor, positioning the company as a pioneer in Asia-Pacific cloud services.
$SAMAIDEN (0223.MY)$ has secured a 21-year power purchase agreement with $TENAGA (5347.MY)$ for a 99.99MW solar plant in Kelantan. The project, part of the LSS5 programme, will be developed by Samaiden's subsidiary and connected to TNB's high-voltage network.
Jeweller $POHKONG (5080.MY)$ saw its Q2 net profit rise 4.78% to RM29.60 million, driven by higher gold prices. Revenue climbed 8.42% to RM459.51 million, reflecting increased demand for gold jewelry and investment products. No dividend was declared for the quarter.
$TSRCAP (5042.MY)$ has been awarded a RM219 million infrastructure contract for the Kwasa Damansara project. The deal, which dwarfs TSR's market cap, includes earthworks, road construction, and utility installations at the Sungai Buloh development.
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Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The Edge.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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