Bursa Malaysia Expertise Index jumps over 5% on hopes of slower US fee hikes

KUALA LUMPUR (Nov 11): Bursa Malaysia’s Expertise Index rose as a lot as 6.25% to 61.15 factors on Friday (Nov 11), fuelled by slower-than-projected US inflation information, which can immediate slower fee hikes by the US Federal Reserve (Fed).

The rally in native tech counters was additionally in keeping with the surge within the in a single day US shares, notably the tech-heavy Nasdaq, which jumped 7.35%, adopted by the S&P 500 (+5.54%) and the Dow Jones Industrial Common (+3.7%).

“The shopping for curiosity in tech shares was as a result of notion that the softening of the US shopper worth index (CPI) could result in a pivoting from hawkish to much less hawkish stance, contributing to the rebound in Nasdaq. [As such] the shopping for curiosity [has] spilled over to our native fronts,” Malacca Securities head of analysis Loui Low Ley Yee advised The Edge when contacted.  

At market shut, the Expertise Index elevated 5.33%, outperforming the benchmark FBM KLCI’s 1.27% achieve.

Reuters reported that the S&P 500 and Nasdaq noticed their greatest day by day proportion positive factors in over two-and-a-half years as an indication of slowing inflation in October sparked hypothesis the Fed would possibly turn out to be much less aggressive with rate of interest hikes.

The US CPI expanded 7.7% from a 12 months earlier, the smallest annual advance because the begin of the 12 months and down from 8.2% in September, in keeping with the US Labour Division report.

At dwelling, tech counters dominated the highest gainers checklist, together with semiconductor producer Malaysian Pacific Industries Bhd (MPI) and automatic check gear (ATE) producers Greatech Expertise Bhd and Pentamaster Corp Bhd.

By worth, MPI ended the day as the highest gainer because it elevated RM2.30 (9.63%) to RM26.18, whereas Greatech was up 53 sen (16.21%) to RM3.80 and Pentamaster gained 31 sen (8.12%) to RM4.13.

Bloomberg information confirmed that the 42-stock Expertise Index had 29 gainers, 4 decliners and 9 unchanged counters.

Greatech was the most important index mover in proportion phrases, which lifted the index by 18.88% or 0.56 factors, adopted by MPI at 13.35% or 0.4 factors, and Inari Amertron Bhd at 11.87% or 0.36 factors.

The highest laggard was KESM Industries Bhd, which dragged the index by 0.21%, adopted by Omesti Bhd (-0.15%) and Income Group Bhd (-0.01%).



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