Energy Stocks Boost Bursa Malaysia as U.S. Markets Slide on Global Concerns
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U.S. stock markets closed lower, with $Dow Jones Industrial Average (.DJI.US)$ falling by 0.44% to 33,585.00. The day’s losses were driven by declines in key sectors such as healthcare and aerospace, with $Merck & Co (MRK.US)$ down 1.70%, $Boeing (BA.US)$ losing 1.55%, and $Amazon (AMZN.US)$ declining 1.52%. Meanwhile, technology stocks managed to post gains, with $Salesforce (CRM.US)$ rising 0.51% and $Chevron (CVX.US)$ climbing 0.20%. The mixed performance reflects investor caution amidst global uncertainties, including inflation concerns and the Fed’s interest rate policy.
$S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ also saw minor losses, closing lower by 0.17% and 0.05%, respectively. Meanwhile, U.S. oil futures rose significantly, with $Crude Oil Futures(DEC4) (CLmain.US)$ increasing by 5.25% to USD 73.78 per barrel, and $Brent Last Day Financial Futures(JAN5) (BZmain.US)$ crude advancing by 5.09% to USD 77.66 per barrel.
$S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ also saw minor losses, closing lower by 0.17% and 0.05%, respectively. Meanwhile, U.S. oil futures rose significantly, with $Crude Oil Futures(DEC4) (CLmain.US)$ increasing by 5.25% to USD 73.78 per barrel, and $Brent Last Day Financial Futures(JAN5) (BZmain.US)$ crude advancing by 5.09% to USD 77.66 per barrel.
Bursa Malaysia Rebounds After Early Losses
Bursa Malaysia’s $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ reversed earlier losses, ending the day 2.24 points higher at 1,641.55, representing a 0.14% increase. The index had fluctuated throughout the session, trading between a high of 1,643.82 and a low of 1,630.45. In total, 3.3 billion shares worth RM2.5 billion were traded.
Bursa Malaysia’s $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ reversed earlier losses, ending the day 2.24 points higher at 1,641.55, representing a 0.14% increase. The index had fluctuated throughout the session, trading between a high of 1,643.82 and a low of 1,630.45. In total, 3.3 billion shares worth RM2.5 billion were traded.
The market showed mixed sentiment, with 473 gainers outnumbered by 504 decliners, while 545 counters remained unchanged. Among the top gainers were $F&N (3689.MY)$ and $PANAMY (3719.MY)$, both climbing 50 sen. Conversely, $PERTAMA (8532.MY)$ plunged to a two-year low, hitting its limit down, losing 30% and closing at RM1.12.
Regional Market Performance and Ringgit Depreciation
Regionally, Asian markets showed a varied performance. Japan’s $Nikkei 225 (.N225.JP)$ surged by 1.97%, driven by optimism over global demand for Japanese exports, while Hong Kong’s $Hang Seng Index (800000.HK)$ fell by 1.47%, impacted by geopolitical tensions. The $FTSE Singapore Straits Time Index (.STI.SG)$ in Singapore ended marginally higher, adding 0.04%.
Regionally, Asian markets showed a varied performance. Japan’s $Nikkei 225 (.N225.JP)$ surged by 1.97%, driven by optimism over global demand for Japanese exports, while Hong Kong’s $Hang Seng Index (800000.HK)$ fell by 1.47%, impacted by geopolitical tensions. The $FTSE Singapore Straits Time Index (.STI.SG)$ in Singapore ended marginally higher, adding 0.04%.
The $USD/MYR (USDMYR.FX)$ continued its downward trend, falling for a third consecutive session by 1.2%, hitting its lowest point since mid-September. The depreciation was influenced by rising demand for the U.S. dollar amidst escalating tensions between Iran and Israel, prompting investors to seek safe-haven assets.
Sectoral Insights and Market Movers
In the energy sector, $HENGYUAN (4324.MY)$ gained 26 sen to RM2.35, benefiting from the increase in crude oil prices. Other notable gainers included $AYER (2305.MY)$, which rose 30 sen to RM7, and $BLDPLNT (5069.MY)$, which gained 46 sen to close at RM11. In contrast, $MPI (3867.MY)$ dropped 36 sen to RM26.58, and $HEIM (3255.MY)$ slid 28 sen to RM23.42.
$Bursa Energy (0061I.MY)$-related stocks received a boost from rising oil prices, while profit-taking activities hit $Bursa Industrial Products & Services (0002I.MY)$ and $Bursa Finance Services (0010I.MY)$ stocks. The broader market remained mixed, with profit-taking activities dominating some sectors.
In the energy sector, $HENGYUAN (4324.MY)$ gained 26 sen to RM2.35, benefiting from the increase in crude oil prices. Other notable gainers included $AYER (2305.MY)$, which rose 30 sen to RM7, and $BLDPLNT (5069.MY)$, which gained 46 sen to close at RM11. In contrast, $MPI (3867.MY)$ dropped 36 sen to RM26.58, and $HEIM (3255.MY)$ slid 28 sen to RM23.42.
$Bursa Energy (0061I.MY)$-related stocks received a boost from rising oil prices, while profit-taking activities hit $Bursa Industrial Products & Services (0002I.MY)$ and $Bursa Finance Services (0010I.MY)$ stocks. The broader market remained mixed, with profit-taking activities dominating some sectors.
Outlook and Market Sentiment
Both U.S. and Malaysian markets remain under pressure from geopolitical concerns and economic uncertainties. In the U.S., investors are focusing on upcoming labor market data, including jobless claims and the JOLTS job report, as well as potential wage growth and unemployment data. These economic indicators will provide critical insights into the Federal Reserve’s monetary policy approach.
Meanwhile, in Malaysia, the market’s direction will largely depend on external factors, particularly global commodity prices and geopolitical developments in the Middle East. The weakening of the ringgit adds further caution to the local market, although selected sectors such as $Bursa Energy (0061I.MY)$ and $Bursa Plantation (0025I.MY)$ may continue to see gains.
Both U.S. and Malaysian markets remain under pressure from geopolitical concerns and economic uncertainties. In the U.S., investors are focusing on upcoming labor market data, including jobless claims and the JOLTS job report, as well as potential wage growth and unemployment data. These economic indicators will provide critical insights into the Federal Reserve’s monetary policy approach.
Meanwhile, in Malaysia, the market’s direction will largely depend on external factors, particularly global commodity prices and geopolitical developments in the Middle East. The weakening of the ringgit adds further caution to the local market, although selected sectors such as $Bursa Energy (0061I.MY)$ and $Bursa Plantation (0025I.MY)$ may continue to see gains.
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