Malaysia Morning Wrap | KLCI Edges Higher as Bank Negara Maintains Interest Rates; Ringgit Continues Upward Trend
Key Takeaways:
• US Markets Rally on Policy Shifts and Strong Economic Data
• KLCI Rises 0.66% as Bank Negara Holds Rates Steady
• Stocks to watch: NATGATE, LSH, etc.
🇺🇸 Wall Street Summary
$S&P 500 Index (.SPX.US)$ 6,913.35 (0.55%)
$Dow Jones Industrial Average (.DJI.US)$ 49,384.01 (0.63%)
$Nasdaq Composite Index (.IXIC.US)$ 23,436.02 (0.91%)
$Nasdaq Composite Index (.IXIC.US)$ climbed 211.20 points, or 0.91%, to close at 23,436.02. Meanwhile, $Dow Jones Industrial Average (.DJI.US)$ advanced 306.78 points, or 0.63%, finishing at 49,384.01, and $S&P 500 Index (.SPX.US)$ rose 37.73 points, or 0.55%, to end the session at 6,913.35.
Markets staged a two-day rebound on Wednesday and Thursday, triggered by a series of U.S. policy moves: the president first ruled out military action to seize Greenland, then scrapped planned tariffs, and finally unveiled a framework to resolve the Greenland issue in coordination with America’s European NATO allies.
All stocks in the "Magnificent Seven" rebounded on Thursday, buoyed partly by the resolution of the relevant issue. $Meta Platforms (META.US)$ led the rally with a 5.6% gain, followed by $Tesla (TSLA.US)$ , which climbed 4.2%. Other major tech stocks also advanced on Thursday, fueled in part by the market’s optimism over trade and geopolitical stability. These included $SEALSQ Corp (LAES.US)$ with an 11.6% surge, $Arm Holdings (ARM.US)$ with a 4.6% rise, and $Oracle (ORCL.US)$ with a 2.5% gain.
Meanwhile, a batch of U.S. economic reports delivered broadly positive outcomes. The November PCE index—the Fed's preferred inflation gauge—hit 2.8% for both headline and core, matching economists' forecasts but topping the 2% long-term target. Weekly initial jobless claims also came in below expectations. Additionally, the final Q3 GDP revision showed a 4.4% annualized growth rate, the strongest pace since 2023.
🇲🇾Bursa Market Insight
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ 1,717.14 (+0.66%)
The $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ gained 11.33 points or 0.66% to close at 1,717.14 on Thursday, buoyed by Bank Negara's decision to maintain the Overnight Policy Rate at 2.75%. The market saw positive sentiment with 622 gainers outpacing 425 losers, while trading volume reached 2.82 billion shares worth RM3.41 billion.
The Malaysian ringgit reached a four-week high, extending its upward trend for the fourth consecutive day to trade at 4.035 against the US dollar at the time of reporting. This surge coincided with significant net buying by foreign funds and local institutions, which acquired RM215 million and RM203 million worth of equities respectively on Wednesday. In contrast, local retailers were net sellers, offloading RM418 million in equities.
Analysts expect the FBM KLCI to trade within a range of 1,700 to 1,740 points in the near term, reflecting a cautious but slightly optimistic outlook. While the index has rebounded over the past two days, experts like Mohd Sedek Jantan from IPP Global Wealth view this as a technical recovery rather than a strong directional trend.
Investors remain focused on the upcoming Federal Reserve decision, with expectations of two rate cuts this year potentially benefiting Malaysian equities.
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🔔Stocks to Watch
$NATGATE (0270.MY)$ announced its clearance by the Inland Revenue Board following a tax investigation linked to a scrap metal smuggling operation. The company's records were found to be in order, and a previously earmarked bank account has been regularized.
Teleport Commerce Malaysia, the logistics arm of $CAPITALA (5099.MY)$, has raised $50 million in pre-IPO growth capital through redeemable convertible perpetual securities. The funding, provided by HPS Investment Partners, will support Teleport's expansion ahead of a planned future listing.
$LSH (0351.MY)$ is seeking shareholder approval to invest RM484.8 million in the Morib rejuvenation project, partnering with Besteel Engtech Sdn Bhd. The RM692.6 million project includes renovating Sri Morib Golf Club and developing 150 acres for residential and commercial use.
$CABNET (0191.MY)$'s subsidiary, Cabnet M&E Sdn Bhd, has been awarded two contracts worth RM14.8 million for electrical system works in Johor. The contracts, awarded by Haily Construction Sdn Bhd, cover shops and a serviced apartment project.
$BWYS (0313.MY)$ revealed plans to sell its Bukit Changgang industrial property for RM67 million and acquire freehold land in Tanjong Duabelas for RM94.5 million.
$ALPHA (0303.MY)$'s second-quarter net profit decreased by 20.5% to RM12 million, despite a 9.4% revenue increase to RM47.3 million. The earnings decline was attributed to higher administrative expenses related to ongoing expansion efforts.
$DXN (5318.MY)$, a direct-selling health and wellness company, is considering investments of up to $50 million in Brazil to strengthen its presence in Latin America.
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Source: Dow Jones Newswires, Bursa Malaysia, The Edge
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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