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KUALA LUMPUR (Nov 3): The FBM KLCI closed down 5.01 points or 0.34% at 1,461.45 today, while the Bursa Malaysia index for small-cap (small-cap) equities rose 2.21% as investors weighed Bank Negara Malaysia (BNM) decision to hold interest rates. During an eventful week, which will see markets gearing up for the announcement of Malaysia’s Budget 2021 in addition to the US Presidential elections.
It was reported that BNM decided to keep the overnight policy rate at 1.75% today as Malaysia’s economic activity is projected to improve further and the central bank expects the nation’s core inflation to remain subdued as the world economy grapples. with the resurgence of Covid-19. cases.
Investors will also keep a close eye on the US presidential election today as they anticipate the announcement of Malaysia’s Budget 2021 on Friday (November 6).
Today, Rakuten Trade Sdn Bhd Research Vice President Vincent Lau said that “investors are still on the sidelines as they became cautious” ahead of today’s US presidential election (Nov 3), as well as Malaysia’s Budget 2021 announcement on Friday.
CGS-CIMB Securities Sdn Bhd economists Michelle Chia and Lim Yee Ping wrote today in a note that BNM’s decision went against CGS-CIMB’s expectations, “implying BNM’s inclination to look beyond short-term risks to economic recovery, drawing a line on further rate cuts. “
“Market attention will next shift to the 2021 Budget on November 6, which is expected to provide the next stretch of stimulus for economic recovery,” Chia and Lim said.
Today, Bursa saw 6.45 billion securities worth RM3.31 billion traded on the exchange. The winners outnumbered those who declined in 669 to 384 respectively.
At a glance, the people who notably declined included KLCI constituents PPB Group Bhd and Sime Darby Bhd.
PPB’s share price closed 14 sen or 0.76% lower at RM 18.36, while Sime Darby Bhd closed 13 sen or 5.24% lower at RM 2.35.
Globally, global stock markets were reported to have risen as investors forecast the outcome of the closely watched US presidential election.
Meanwhile, President Donald Trump and Democratic rival Joe Biden made a desperate push for votes in battle states as their campaigns braced for post-election disputes that could prolong a divisive presidential election.
European stock markets rose in early trading on Tuesday, as investors bet on a clear win for Biden as the United States votes, in its most polarized presidential election in memory.
Asian stocks got off to a strong start on Tuesday, with investors buoyed by strong industrial production data from major economies, while the dollar and gold held firm on political uncertainty ahead of the US elections.
“The markets are valuing a Biden win, certainly a clear result, and they want a clear and indisputable result,” quoted Michael Hewson, chief market analyst at CMC Markets. Reuters like saying.
A surprise Trump victory, a contested result, or simply a split result could trigger corrections in the markets, Hewson said.
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