Markets decline but consolidation expected here

The FBM KLCI fell by 0.2% due to profit-taking in half of its key index components, with the Healthcare sector dropping 1.3%. 

Global markets also saw declines:

US stock markets dropped after a 50 bps interest rate cut from the Federal Reserve, which also hinted at slower future cuts, while European markets pulled back and Asian markets ended mixed.

Consolidation

In terms of market outlook, further consolidation in the Malaysian market is expected due to tempered optimism around US rate cuts and a lack of new domestic leads. Focus may shift to selective sectors, like construction, which is expected to extend gains ahead of the 2025 budget. 

The Banking and REIT sectors are also anticipated to gain favor as investors seek higher yields in a declining interest rate environment. Key upcoming data includes the Bank of England’s interest rate decision and US new home sales.

Read more Business News

Staff Writer

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