Latest news with #Sedek
New Straits Times
19 hours ago
- Business
- New Straits Times
Bursa Malaysia down 0.7pct amid persistent macroeconomic, political uncertainties
KUALA LUMPUR: Bursa Malaysia closed lower on Friday, as the local benchmark was unable to hold onto its early gains pressured by ongoing foreign fund outflows and persistent macroeconomic and political uncertainties. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 0.70 per cent, losing 10.63 points to 1,508.35 compared to its last close price of 1,518.98. The benchmark index started the day 2.24 points higher at 1,521.22 and reached an early peak of 1,522.06 before losing momentum and closing at its lowest point of the day. In the broader market, declining stocks outweighed advancing ones, with 616 losers compared to 336 gainers, while 417 counters remained unchanged. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the index had erased its earlier momentum, sending the one-month return to -2.0 per cent and hovering just above the key psychological threshold of 1,500. "The decline was broad-based, although selected banking and consumer stocks among the FBM KLCI constituents managed to stage modest rebounds following yesterday's drop. "However, the rebound was uneven and lacked the depth needed to anchor broader market stability," he adds. Sedek said he expects the FBMKLCI to trade in a narrow range in the absence of a clear catalyst. "Should the index fall below the 1,500 level, bargain hunting may emerge, especially in undervalued large-cap names. However, market sentiment is likely to remain cautious," he said.
New Straits Times
3 days ago
- Business
- New Straits Times
Bursa Malaysia down ahead of key US data releases
KUALA LUMPUR: Bursa Malaysia ended lower today, pressured by selling activity amid cautious market sentiment as investors await key US economic data releases later this week. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 2.68 points or 0.18 per cent to 1,523.48 from Tuesday's close of 1,526.16. The benchmark index opened 3.98 points higher at 1,530.14 and fluctuated between 1,523.48 and 1,532.80 throughout the day. In the broader market, decliners outpaced gainers 474 to 435, with 499 counters unchanged, 938 untraded and 50 suspended. Turnover declined to 2.51 billion units worth RM2.04 billion compared with Tuesday's 2.66 billion units worth RM1.85 billion. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the FBM KLCI closed lower today, failing to sustain an early recovery attempt, in contrast to Wall Street's overnight rally. He said persistent selling pressure weighed on the index, reflecting cautious market sentiment as investors await pivotal US economic data releases later this week. They are the Consumer Price Index and retail sales figures, which will provide critical insights into the trajectory of global economic growth. "Nvidia's quarterly earnings report, due tonight, remains a focal point, given its role as a bellwether for the tech sector and broader market confidence," he said. Sedek said foreign investors intensified their net selling on Bursa on Tuesday, extending last week's outflows. This sustained selling underscores heightened caution among global funds amid uncertainties surrounding US monetary policy and elevated regional market valuations.
New Straits Times
09-05-2025
- Business
- New Straits Times
Bursa closes slightly higher, improved sentiment fuelled interest in industrial stocks
KUALA LUMPUR: Bursa Malaysia ended slightly higher on Friday, supported by gains in industrial stocks as investor sentiment improved amid renewed optimism over global trade talks. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.24 per cent, or 3.76 points, to close at 1,546.50, up from Thursday's close of 1,542.74. The broader market saw an even match, with 453 gainers and 453 losers, while 524 counters were unchanged. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said market sentiment was lifted by a positive lead from Wall Street. This was driven by reduced trade tension concerns, especially after US President Donald Trump announced a proposed trade agreement with the United Kingdom, which encouraged a risk-on mood among investors. "Locally, Malaysia continues to attract strategic interest from multinational investors. The European Union (EU) has signalled clear intent to elevate its economic ties with Asean, with Malaysia positioned as a key partner. "According to the EU ambassador to Malaysia, Rafael Daerr, the Malaysia-EU Free Trade Agreement is expected to serve as a critical instrument to strengthen bilateral trade and investment linkages," he said. Sedek said this comes at a time when global markets remain vulnerable to protectionist shifts and policy uncertainty. "Looking ahead, we maintain a positive view on the FBM KLCI's near-term trajectory, with the recent relief rally likely to continue. "The benchmark index appears set to challenge the 1,555 resistance level - a threshold last tested in early March during a period of heightened tariff speculation - and may even extend toward 1,560 if momentum holds," he said. Sedek said if the upcoming US-China trade discussions in Switzerland over the weekend result in meaningful progress, the FBM KLCI is likely to climb to the 1,565–1,575 range. "However, if discussions break down or produce ambiguous outcomes, global risk sentiment may reverse, exerting downward pressure on regional markets, including Bursa Malaysia," Sedek adds.
New Straits Times
03-05-2025
- Business
- New Straits Times
Domestic bonds emerge as safe-haven assets
KUALA LUMPUR: Malaysian bonds have shone as safe-haven assets, mirroring a global retreat to safety as the 10-year US Treasury yields decline, analysts said. However, they warned that the confidence in the local bonds could be precarious amid deepening global trade tensions and a vulnerable external sector. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the Malaysian Government Securities (MGS) have shone as 10-year US Treasury yields declined by 36 basis points to 4.21 per cent. The decline was driven by mounting concerns over sluggish global growth and policy unpredictability surrounding renewed US tariff threats. "The shift toward MGS as safe-haven assets indicates that investors view Malaysia's fiscal discipline and monetary policy framework favourably, especially compared to other emerging markets, despite challenges in mining and manufacturing sectors," he told Business Times. Even though investors currently view Malaysian bonds as safe, he said worsening global trade tensions might scare them into pulling their money out, reducing demand for MGS and potentially destabilising Malaysia's bond market. "Malaysia's export-driven sectors - mining and manufacturing - face headwinds, risking a faltering ringgit, which recently rallied on a transient 90-day tariff reprieve. A depreciating currency could spur capital outflows, dimming bond inflows," he added. Sedek said April's subdued secondary bond market activity signals investor caution in turbulent times. He said Malaysia's 4.4 per cent growth in the first quarter of 2025, fuelled by robust domestic demand and construction, offers resilience but the horizon holds intrigue. He added that a potential Bank Negara Malaysia rate cut in the second half this year, hinted at by a gloomier growth outlook, could keep yields enticing. "Sustainability hinges on deft navigation of trade negotiations and unwavering fiscal credibility to anchor investor faith in a tempestuous global landscape," he said. According to MARC Ratings Bhd, rising global trade tensions have driven foreign investors toward safer assets, fuelling bond inflows into Malaysia despite persistent equity outflows. The ratings agency said foreign investors withdrew RM4.7 billion from equities in March, but this was offset by RM2.8 billion in net inflows into the bond market. Yields on MGS declined across the curve, with sharp drops in short- to medium-term tenures reflecting strong demand for bonds amid dovish global monetary expectations and tariff-related uncertainty. MARC said corporate credit spreads widened, signalling a shift in preference toward sovereign and high-grade bonds. Risk appetite in the secondary market also faded. Globally, the US Dollar Index fell below 100 amid concerns over US President Donald Trump's trade policies and expectations of Federal Reserve rate cuts. While US Treasury yields climbed on inflation fears and retaliatory selling, equity markets lost momentum. "Despite maintaining a broadly dovish bias, central banks and global markets are adopting a cautious wait-and-see approach during the current 90-day tariff review, as Trump's policy actions are likely to remain unpredictable," MARC said. Domestically, Malaysia's economy is expected to grow 4.4 per cent in the first quarter of 2025, down from 5.0 per cent in the previous quarter due to weaker mining and manufacturing activity. However, domestic demand, services and construction remained firm. Inflation stayed subdued at 1.4 per cent in March, but MARC flagged upside risks from the recent minimum wage hike and the upcoming RON95 fuel subsidy rationalisation. Exports rose 6.8 per cent in March, driven by electrical and electronics, palm oil and machinery shipments to the US, Hong Kong and Singapore. Despite this, MARC warned that exposure to new US tariffs would pose risks, though countries could mitigate this through ongoing supply chain diversification. The ringgit, which initially weakened after the US tariff announcement, rebounded in April on improved regional sentiment, broader US dollar weakness and a 90-day pause on tariff implementation.
New Straits Times
02-05-2025
- Business
- New Straits Times
Bursa Malaysia closes higher amid positive Wall Street signals
KUALA LUMPUR: Bursa Malaysia ended higher on Friday, continuing the strong momentum from earlier in the week. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.15 per cent, gaining 2.27 points to close at 1,542.49, up from its previous close of 1,540.22. Across the broader market, 743 counters recorded gains, surpassing the 308 that declined, while 453 remained unchanged. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said although there were positive signals from Wall Street overnight, the local market remained cautious for most of the day as investors awaited key US labour market data. "The overall performance of the composite index this week has exceeded our earlier expectations. "While we initially anticipated the market to trade within a tight range of 1,513 to 1,515, the index extended its rally and ended the week at 1,542.49. "This stronger-than-expected performance suggests sustained investor confidence and underlying market resilience, even amid global uncertainties," he said. Sedek noted that heading into next week, the sustained momentum, coupled with renewed foreign interest as overseas investors return as net buyers on Bursa Malaysia, suggests the potential for continued fund inflows. "Regardless of the non-farm payrolls (NFP) outcome tonight, Malaysian equities continue to stand out on valuation grounds, which could increasingly capture the attention of global investors. "We expect the FBM KLCI to maintain its upward trajectory, with potential to trade in the 1,565–1,570 range next week," he added.
