Bursa ends higher on bargain-hunting ahead of BNM rate decision

Bursa Malaysia saw a rise in shares on Wednesday as bargain hunters took advantage of the recent sell-off, in anticipation of Bank Negara Malaysia's (BNM) decision on the overnight policy rate (OPR) due Thursday. At 5pm, the FTSE Bursa Malaysia KLCI stood at 1,708.74, up 8.20 points from Tuesday's close of 1,700.54. The BNM Monetary Policy Committee is expected to meet tomorrow, with expectations of no change in the OPR at 2.75% for the remainder of 2026.

Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, noted that bargain hunting was observed in banking and commodity-related heavyweights following a strong sell-off. Despite global markets extending losses due to rising bond yields, Thong believes bargain hunting could continue at current levels, particularly in select heavyweight stocks with attractive valuations.

Investors are expected to closely monitor BNM's monetary policy decision and upcoming US employment data for further insights into the interest-rate outlook. In the coming days, the FBM KLCI is likely to remain in consolidation mode as investors assess developments in the Middle East and global interest rates.