Market Sentiment Wavers as Bursa Malaysia, U.S. Stocks Decline Amid Fed Cut
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Both the U.S. and Bursa Malaysia markets experienced volatility amidst global economic uncertainty and investor caution ahead of the U.S. Federal Reserve’s expected interest rate cut. While the U.S. stock market saw declines, Bursa Malaysia ended lower as well, with losses driven by various sectoral pressures.
U.S. Stock Market
Performance Overview
U.S. Stock Market
Performance Overview
U.S. equities closed lower on Wednesday, with $Dow Jones Industrial Average (.DJI.US)$ falling by 0.25% or 103 points to end at 34,450.73. $S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ also declined, each shedding 0.3%. The market’s negative reaction came after the Federal Reserve delivered a 50 basis points rate cut, the first since March 2020. The decision initially spurred a surge in stocks, but market sentiment shifted, leading to a sell-off by the close.
Federal Reserve Rate Cut
• The Federal Reserve’s 50 basis points rate cut marked a significant policy shift, with markets initially split between a 25 basis points and 50 basis points reduction. The decision suggested a more aggressive approach to stabilizing the economy amid ongoing inflation concerns. The Fed also hinted at two more 25 basis points cuts within the year, heightening market speculation about future monetary policy.
Key Stock Movements
• Top Performers:
• $Apple (AAPL.US)$ rose 1.80% to $220.69.
• $Disney (DIS.US)$ added 0.78% to $93.58.
• $West Pharmaceutical Services (WST.US)$ led $S&P 500 Index (.SPX.US)$, increasing by 4.50% to $309.18.
• On $Nasdaq Composite Index (.IXIC.US)$, $Odyssey Marine Exploration (OMEX.US)$ surged by 182.09%.
Federal Reserve Rate Cut
• The Federal Reserve’s 50 basis points rate cut marked a significant policy shift, with markets initially split between a 25 basis points and 50 basis points reduction. The decision suggested a more aggressive approach to stabilizing the economy amid ongoing inflation concerns. The Fed also hinted at two more 25 basis points cuts within the year, heightening market speculation about future monetary policy.
Key Stock Movements
• Top Performers:
• $Apple (AAPL.US)$ rose 1.80% to $220.69.
• $Disney (DIS.US)$ added 0.78% to $93.58.
• $West Pharmaceutical Services (WST.US)$ led $S&P 500 Index (.SPX.US)$, increasing by 4.50% to $309.18.
• On $Nasdaq Composite Index (.IXIC.US)$, $Odyssey Marine Exploration (OMEX.US)$ surged by 182.09%.
• Worst Performers:
• $Intel (INTC.US)$ fell 3.26% to $20.77.
• $Honeywell (HON.US)$ declined 1.27% to $201.64.
• $ResMed (RMD.US)$ was the biggest loser on $S&P 500 Index (.SPX.US)$, down 5.12% to $238.03.
Market Sentiment and Commodities
• Declining stocks outnumbered advancing ones on both the NYSE and Nasdaq, indicating broader market weakness.
• In the commodities market, $Gold Futures(DEC4) (GCmain.US)$ delivery decreased by 0.32% to $2,584.00 per troy ounce.
• $Crude Oil Futures(JAN5) (CLmain.US)$ delivery fell by 1.10% to $69.19 per barrel, with Brent Oil declining 1.00% to $72.96 per barrel.
Bursa Malaysia
Performance Overview
• $Intel (INTC.US)$ fell 3.26% to $20.77.
• $Honeywell (HON.US)$ declined 1.27% to $201.64.
• $ResMed (RMD.US)$ was the biggest loser on $S&P 500 Index (.SPX.US)$, down 5.12% to $238.03.
Market Sentiment and Commodities
• Declining stocks outnumbered advancing ones on both the NYSE and Nasdaq, indicating broader market weakness.
• In the commodities market, $Gold Futures(DEC4) (GCmain.US)$ delivery decreased by 0.32% to $2,584.00 per troy ounce.
• $Crude Oil Futures(JAN5) (CLmain.US)$ delivery fell by 1.10% to $69.19 per barrel, with Brent Oil declining 1.00% to $72.96 per barrel.
Bursa Malaysia
Performance Overview
Bursa Malaysia closed lower on Wednesday, with $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ easing 3.69 points or 0.22% to 1,660.59. The index opened higher at 1,664.33 and fluctuated between 1,654.0 and 1,664.78 throughout the day. Market sentiment was subdued, with 526 decliners outnumbering 442 gainers, and 489 counters remaining unchanged.
Sectoral Performance
1. Glove Stocks and Healthcare
• The rally in glove stocks lost momentum, with key players like:
• $TOPGLOV (7113.MY)$ falling 7 sen to RM1.07.
• $HARTA (5168.MY)$ dropping 3 sen to RM3.11.
• $KOSSAN (7153.MY)$ sliding 13 sen to RM2.12.
• The loss of momentum in glove stocks indicates waning interest in pandemic-related sectors as the global economic outlook evolves.
Sectoral Performance
1. Glove Stocks and Healthcare
• The rally in glove stocks lost momentum, with key players like:
• $TOPGLOV (7113.MY)$ falling 7 sen to RM1.07.
• $HARTA (5168.MY)$ dropping 3 sen to RM3.11.
• $KOSSAN (7153.MY)$ sliding 13 sen to RM2.12.
• The loss of momentum in glove stocks indicates waning interest in pandemic-related sectors as the global economic outlook evolves.
2. Financial Services
• Despite the overall market downturn, the Financial Services Index expanded by 19.14 points to 19,660.09.
• Despite the overall market downturn, the Financial Services Index expanded by 19.14 points to 19,660.09.
• Among heavyweights
• Maybank gained 2 sen to RM10.68.
• Public Bank added 1 sen to RM4.71.
• Maybank gained 2 sen to RM10.68.
• Public Bank added 1 sen to RM4.71.
3. Energy and Industrials
• $Bursa Energy (0061I.MY)$ Index slipped by 7.45 points to 862.27.
• $Bursa Industrial Products & Services (0002I.MY)$ Index eased 0.83 points to 176.08.
• $Bursa Energy (0061I.MY)$ Index slipped by 7.45 points to 862.27.
• $Bursa Industrial Products & Services (0002I.MY)$ Index eased 0.83 points to 176.08.
4. Other Sectors
• $Bursa Plantation (0025I.MY)$ Index dropped 49.27 points to 7,164.2.
• $Bursa Technology (0005I.MY)$: Volumes in the technology sector reached 344.51 million shares traded, indicating persistent activity despite broader market uncertainty.
Market Volume and Turnover
• Main Market volume fell to 1.59 billion units worth RM2.62 billion from Tuesday’s 1.88 billion units worth RM3.14 billion.
• Warrant turnover was sharply lower at 421.13 million units valued at RM39.83 million compared to 932.78 million units valued at RM108.56 million previously.
• $FTSE Bursa Malaysia ACE Index (.FBMMES.MY)$ volume narrowed to 286.10 million units worth RM91.29 million from Tuesday’s 370.14 million units worth RM96.42 million.
Global and Economic Context
• $Bursa Plantation (0025I.MY)$ Index dropped 49.27 points to 7,164.2.
• $Bursa Technology (0005I.MY)$: Volumes in the technology sector reached 344.51 million shares traded, indicating persistent activity despite broader market uncertainty.
Market Volume and Turnover
• Main Market volume fell to 1.59 billion units worth RM2.62 billion from Tuesday’s 1.88 billion units worth RM3.14 billion.
• Warrant turnover was sharply lower at 421.13 million units valued at RM39.83 million compared to 932.78 million units valued at RM108.56 million previously.
• $FTSE Bursa Malaysia ACE Index (.FBMMES.MY)$ volume narrowed to 286.10 million units worth RM91.29 million from Tuesday’s 370.14 million units worth RM96.42 million.
Global and Economic Context
• Market Caution: Global markets displayed caution ahead of the U.S. Federal Reserve’s rate decision. Despite the Fed’s aggressive cut, uncertainties about the accompanying statements and future policy directions have created a risk-averse environment among investors.
• Regional Markets: Regional markets were mixed, with Japan’s $Nikkei 225 (.N225.JP)$ gaining 0.49% and Hong Kong’s $Hang Seng Index (800000.HK)$ rising 1.37%. In contrast, Singapore’s $FTSE Singapore Straits Time Index (.STI.SG)$ eased by 0.10%.
• Investor Outlook: The market’s future trajectory will depend on how investors interpret the Fed’s decisions and their implications for global economic growth and market stability.
Outlook
Both the U.S. and Bursa Malaysia markets remain sensitive to developments surrounding the U.S. Federal Reserve’s interest rate policies. The anticipated “cut-and-pause” strategy by the Fed could provide a more stable environment by curbing inflationary pressures while supporting the U.S. dollar. In Bursa Malaysia, sectors such as $Bursa Finance Services (0010I.MY)$ and $Bursa Technology (0005I.MY)$ may offer some resilience despite broader market volatility.
• Regional Markets: Regional markets were mixed, with Japan’s $Nikkei 225 (.N225.JP)$ gaining 0.49% and Hong Kong’s $Hang Seng Index (800000.HK)$ rising 1.37%. In contrast, Singapore’s $FTSE Singapore Straits Time Index (.STI.SG)$ eased by 0.10%.
• Investor Outlook: The market’s future trajectory will depend on how investors interpret the Fed’s decisions and their implications for global economic growth and market stability.
Outlook
Both the U.S. and Bursa Malaysia markets remain sensitive to developments surrounding the U.S. Federal Reserve’s interest rate policies. The anticipated “cut-and-pause” strategy by the Fed could provide a more stable environment by curbing inflationary pressures while supporting the U.S. dollar. In Bursa Malaysia, sectors such as $Bursa Finance Services (0010I.MY)$ and $Bursa Technology (0005I.MY)$ may offer some resilience despite broader market volatility.
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