Friday 29 Mar 2024
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KUALA LUMPUR (Nov 10): The FBM KLCI gained 5.12 points or 0.3% on bargain hunting and as global investors reevaluated the significance of Republican candidate Donald Trump’s U.S. presidential election victory to the U.S. economy.

Analysts said Trump's victory had led to uncertainty about U.S. policies on the global economic and political backdrops. However, world share markets rose today, as investors focused on Trump's expansionary fiscal plans for the U.S. economy, according to analysts.

At 5 p.m., the KLCI closed at 1,652.74 points. Investors bargain hunted for Malaysian shares today, after the KLCI fell 16.2 points yesterday.

Today, the KLCI rose with Asian shares. Japan's Nikkei 225 jumped 6.72%, while Hong Kong’s Hang Seng rose 1.89%.

FXTM chief market strategist Hussein Sayed said in a note today: My only explanation to the markets’ super-fast reversal is that investors started looking at the fiscal side. More than eight years into the crisis, central banks were the major driver of financial markets and when their monetary policies started looking ineffective, stock markets remained stuck in narrow ranges." 

"Now with Trump’s promises of big U.S. fiscal spending on the horizon, including massive cut in taxes and less regulation, investors believe that U.S. profit growth will rise sharply, inflation will return, and bonds’ yield curves will steepen," Hussein said. 

Etiqa Insurance and Takaful Bhd research head Chris Eng said the market had expected a rebound in Malaysian shares, but was surprised by how quickly it happened.

“As we talked about it before, we were expecting the market to rebound, but it happened faster than expected. We thought the market would have gone down for a day or two, before the rebound happened,” Eng said.

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