Malaysia Morning Wrap | US government shutdown nears end as Fed officials signal caution on rate cuts
Key Takeaways:
• Dow Jones Hits Record High as Investors Shift from Tech to Non-Tech Stocks
• US Government Shutdown Nears End as Fed Officials Signal Caution on Rate Cuts
• Malaysian Bourse Dips on Profit-Taking Despite Ringgit Strength
• Stocks to watch: VSTECS, SWIFT, etc.
🇺🇸Wall Street Summary
$S&P 500 Index (.SPX.US)$ 6,850.92 (0.06%)
$Dow Jones Industrial Average (.DJI.US)$ 48,254.82 (+0.68%)
$Nasdaq Composite Index (.IXIC.US)$ 23,406.46 (-0.26%)
The $Dow Jones Industrial Average (.DJI.US)$ closed at a record high of 48,254.82 on Wednesday, up 0.68%, marking its second consecutive record-setting session. This surge was driven by strong performances from non-tech Dow components like $UnitedHealth (UNH.US)$ (up 3.55%) and $Goldman Sachs (GS.US)$ Sachs (up 3.54%).
Conversely, the tech-heavy $Nasdaq Composite Index (.IXIC.US)$ fell 0.26% to 23,406.46, reflecting a continued trend of investors rotating out of "Magnificent Seven" tech stocks such as $Amazon (AMZN.US)$ (down 1.97%) and $Apple (AAPL.US)$ (down 0.65%). The $S&P 500 Index (.SPX.US)$ managed a slight gain of 0.06% to 6,850.92.
The US House of Representatives is set to vote Wednesday evening on a crucial measure to end the 43-day federal government shutdown, the longest in US history. If passed, the bill will be promptly sent to President Trump, who is expected to sign it within 24 to 48 hours.
Meanwhile, Federal Reserve officials dampened expectations for a rate cut at the December 9-10 policy meeting. Atlanta Fed President Raphael Bostic stated he favors no further easing until there's "clear evidence" of inflation approaching the 2% target, while Boston Fed President Susan Collins cited a "high bar" for additional cuts. These statements follow two consecutive 25-point rate cuts in recent Fed meetings.
🇲🇾Bursa Market Insight
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ 1631.61 (-0.20%)
The $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ closed 0.2% lower at 1,631.61 points on Wednesday, as investors engaged in profit-taking following recent market gains. The broader market saw 650 losers against 463 gainers, with 557 counters unchanged. Trading volume reached 3.43 billion shares, valued at RM2.86 billion.
Mohd Sedek Jantan of IPPFA Sdn Bhd reports mixed market sentiment in Malaysia, with investors being selective ahead of crucial economic data releases. The recent pullback is attributed to short-term profit-taking, while underlying macro fundamentals remain strong.
UOB Group forecasts gradual improvement in capital flows to emerging markets, including Malaysia, through 2026. This outlook is based on expected Fed rate cuts, potential USD weakness, and stronger growth in emerging economies. Malaysia experienced a positive shift in October, with RM1.7 billion in portfolio inflows after five months of outflows.
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🔔Stocks to Watch
$VSTECS (5162.MY)$ reported impressive Q3 2025 results, with net profit rising 31.7% to RM25.78 million and revenue growing 17.8% to RM991.94 million. The company anticipates another record year, driven by increased adoption of digital technologies, cloud computing, and AI. A first interim dividend of 2.8 sen per share was declared, payable on January 7, 2026.
$SWIFT (5303.MY)$'s Q3 FY2025 results showed significant growth, with net profit up 23.7% to RM7.14 million and revenue increasing 9.8% to RM200.97 million. The improvement was attributed to stronger margins in the freight forwarding segment and higher revenue across all divisions.
$NHFATT (7060.MY)$ reported an 83% increase in Q3 FY2025 net profit to RM10 million, despite a 9.2% drop in revenue to RM65.96 million. The profit growth was driven by lower costs and reduced foreign exchange losses. The company declared a third interim dividend of 1.5 sen per share, payable on December 23.
$UTDPLT (2089.MY)$ saw a 5.5% decrease in Q3 FY2025 net profit to RM203.28 million, despite a 23.6% revenue increase to RM677.08 million. The decline was due to higher operating costs and lower other income. The company declared its 18th consecutive special dividend of 14 sen per share, along with an interim dividend of 30 sen per share.
$SYNERGY (0279.MY)$ experienced a sharp 74.8% drop in Q3 FY2025 net profit to RM2.77 million, with revenue falling 35.8% to RM73.14 million. The decline was attributed to softer market demand linked to US tariffs.
$KERJAYA (7161.MY)$'s subsidiary, Kerjaya Prospek (M) Sdn Bhd, has been awarded a RM56.4 million contract by the Penang Chief Minister's Department. The project involves constructing steel roof structures, including a hawker centre on Jalan Gurney in Penang, with an 18-month completion timeline.
$PRIVA (0123.MY)$ has decided to independently lead the development of a data centre project in Bagan Datuk, Perak, through its subsidiary Silver Streams Technofarm Sdn Bhd. The company will handle all aspects of the project, including funding, feasibility studies, design, construction, operations, and a 30-year land lease with Felcra Bhd.
$ABMB (2488.MY)$ has formed a partnership with local solar energy firm AQ Energy to develop solar and battery solutions for SMEs. The collaboration aims to jointly develop, implement, and finance integrated solar and BESS projects with a total capacity of up to 30MW and a project value of up to RM100 million.
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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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