Banking stocks in Malaysia led the FTSE Bursa Malaysia KLCI (KLCI) index to a 0.39% dip, closing at 1,457.6 on Tuesday, in anticipation of Jerome Powell's speech on the US interest rate outlook. This decline was felt despite a broader market optimism, buoyed by robust corporate earnings and improving economic conditions.
The market saw more gainers (490) than decliners (412), with turnover increasing to 3.45 billion units valued at RM1.97 billion ($468 million), indicating continued market activity amidst the downturn. Thong Pak Leng from Rakuten Trade highlighted this optimism, pointing out that the broader market remained resilient.
Despite the fall in the KLCI index, the overall market exhibited fluctuations throughout Tuesday's trading session, swinging between 1,454.46 and 1,462.01. Additionally, 454 counters remained unchanged, with 1,008 untraded and 10 suspended.
The anticipation of Powell's speech underlines its potential impact on global financial markets. As investors await his remarks on the future of US interest rates, markets across the globe are likely to continue experiencing volatility. The reaction of Malaysian banking stocks provides a snapshot into these global market dynamics.
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