Malaysian Stocks Rally After BNM Rate Decision
Bursa Malaysia’s KLCI surged 1.2% to 1,637 on Thursday afternoon, reversing prior losses and hitting a three-week high. Overnight gains on Wall Street lifted sentiment as traders assessed the implications of sweeping Democratic wins in the U.S. midterms on the Iran war, President Trump’s policy agenda and the AI trade. Locally, Bank Negara Malaysia (BNM) held its overnight policy rate at 2.75% for an eighth month, in line with expectations. Manufacturing activity also grew at its fastest pace in six months last month, supported by stronger output and new orders. However, gains faced some restraint from slowing economic growth, with Q3 GDP expansion easing to a one-year low of 5.3%. Financials and consumer-related sectors led the rally, offsetting declines in energy minerals, healthcare, tech, and manufacturing. Major banks advanced, including Malayan Banking (3.0%), Public Bank (4.2%), and Hong Leong Bank (4.9%. Other notable gainers included KPJ Healthcare (3.8%) and Nestle (2.4%).
Bursa Malaysia’s KLCI surged 1.2% to 1,637 on Thursday afternoon, reversing prior losses and hitting a three-week high. Overnight gains on Wall Street lifted sentiment as traders assessed the implications of sweeping Democratic wins in the U.S. midterms on the Iran war, President Trump’s policy agenda and the AI trade. Locally, Bank Negara Malaysia (BNM) held its overnight policy rate at 2.75% for an eighth month, in line with expectations.
Manufacturing activity also grew at its fastest pace in six months last month, supported by stronger output and new orders. However, gains faced some restraint from slowing economic growth, with Q3 GDP expansion easing to a one-year low of 5.3%. Financials and consumer-related sectors led the rally, offsetting declines in energy minerals, healthcare, tech, and manufacturing. Major banks advanced, including Malayan Banking (3.0%), Public Bank (4.2%), and Hong Leong Bank (4.9%.
Other notable gainers included KPJ Healthcare (3.8%) and Nestle (2.4%).