European Stocks Edge Lower as Rising Global Bond Yields Weigh

KUALA LUMPUR: Bursa Malaysia closed lower on Thursday, impacted by moderate selling along with buying as heightened oil prices and soaring global bond yields negatively influenced investor confidence, according to an analyst. The FTSE Bursa Malaysia KLCI ended 4.12 points, or 0.24 per cent, at 1,672.31 after closing Wednesday at 1,676.43.

The index, which opened 1.98 points lower at 1,674.45, fluctuated between 1,671.48 and 1,679.47 throughout the day. More losses than gains were recorded, with 677 stocks falling compared to 436 that rose, while 542 remained unchanged, 1,246 were untraded, and 27 were suspended. The trading volume surged to 3.32 billion units, valued at RM2.74 billion, from 3.20 billion units, worth RM2.99 billion, the previous day.

Mohd Sedek Jantan, IPPFA Sdn Bhd's director of investment strategy and country economist, noted that the November Brent crude futures surged by 3.3 per cent to US$106.50 per barrel and then regained some of those gains. He argued that the increase in oil prices contributed to worries that higher energy costs could intensify inflationary pressures, potentially leading to sustained higher interest rates.

Regionally, equities faced additional downward pressure as bond yields hovered near multi-decade peaks, putting downward pressure on equity values. For Bursa Malaysia, Mohd Sedek suggested that the confluence of higher oil prices, elevated yields, and ongoing foreign selling tends to keep the market's risk appetite cautious, with investors possibly continuing to favor defensive and commodity-linked sectors. At the time of writing, Brent crude oil had climbed 2.45 per cent to US$105.54 per barrel.