SPI Asset Management's Innes said despite the overall narrative being one of cautious anticipation, the mood on the trading floors was tense.
KUALA LUMPUR: Bursa Malaysia rebounded and closed higher due to buying support in selected heavyweights amid mixed performances from Asian markets.
At 5pm, the FBM KLCI rose 0.14% or 2.25 points to 1,599.58 from Tuesday’s close of 1,597.33.
The index opened unchanged and moved between 1,594.75 and 1,602.38 throughout the trading session.
In the broader market, decliners marginally beat gainers 501 to 480, while 562 counters were unchanged, 928 untraded and 10 suspended.
Turnover narrowed to 2.55 billion units valued at RM2.29bil versus 2.99 billion units worth RM2.43bil on Tuesday.
SPI Asset Management managing director Stephen Innes said despite the overall narrative being one of cautious anticipation, the mood on the trading floors was tense as investors braced for the US Federal Reserve’s (Fed) Federal Open Market Committee (FOMC) meeting yesterday.
He said market expectations of a 25 basis point interest rate cut from the Fed this month should theoretically be bullish.
However, the prevailing uncertainty is tied to the forward guidance, anticipated to carry a somewhat hawkish tone and possibly suggest a pause in interest rate cuts.
“Such an outlook could cast a shadow over regional stock markets, including Bursa Malaysia,” he told Bernama.
Innes further said compounding the cautious market sentiment, November’s economic data from China highlighted significant economic challenges.
There was a marked slowdown across key sectors, with retail sales, fixed asset investments and property investments decelerating notably.
Furthermore, the consumer price index contracted by 0.6% month-over-month, underscoring an urgent need for more robust economic support as looming US tariff threats hover on the horizon.
“This backdrop paints a complex picture for regional markets as they navigate through these uncertain economic times,” Innes added.
