Bursa edges down as investors digest Fed decision

US, 30 JULY 2026 —

Bursa Malaysia opened lower on Thursday, taking cues from dampened sentiment on US Wall Street after the US Federal Reserve (Fed) kept interest rates steady at its latest Federal Open Market Committee meeting. The decision, which marked the fifth consecutive meeting with no change in interest rates, has led to a cautious approach among investors. Besides the Fed's decision, the recent US strikes on Iran, following an attack on a US military base in Jordan, might also weigh on the local bourse.

At 9:05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid by 2.68 points to 1,712.88 from yesterday's close of 1,715.56. The broader market was negative, with losers outpacing gainers 239 to 76, while 237 counters were unchanged, 2,225 untraded, and 87 suspended. Turnover totalled 98.08 million shares worth RM56.55 million, indicating a relatively slow start to the day. The Fed's decision to hold rates steady, with the Federal Funds Rate unchanged between 3.50% and 3.75%, has been met with skepticism by investors, who are concerned about the central bank's ability to combat inflation.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng noted that US Wall Street closed sharply lower as traders were unconvinced of the Fed's policy in fighting inflation by maintaining interest rates unchanged for now. "In addition, the uncertainty over the Strait of Hormuz remains as crude oil prices escalate with Brent hitting above US$90 per barrel (at a point)," he said. This uncertainty is likely to continue weighing on investor sentiment, at least in the short term. The impact of the Fed's decision on the global economy, particularly on emerging markets like Malaysia, will be closely watched in the coming days.

Among heavyweights, Tenaga Nasional eased 14 sen to RM14.46, CIMB shed two sen to RM7.79, and IHH Healthcare remained unchanged at RM8.35, while Maybank and Public Bank added two sen each to RM10.88 and RM5.17, respectively. The performance of these blue-chip stocks will be crucial in determining the overall direction of the market. Among active stocks, Marine & General expanded one sen to 28 sen, MAG Holdings was flat at 16.5 sen, while VS Industry was down one sen to 22.5 sen, PUC slipped half-a-sen to 3.5 sen and AirAsia Group weakened two sen to RM1.04.

The top gainers on the day included Petronas Gas, which advanced 14 sen to RM17.78, TradePlus Shariah Gold Tracker, which jumped five sen to RM5.14, Westports Holdings, which was four sen up to RM6.87, Hengyuan Refining Company, which inched up four sen to RM6.87, and Hong Leong Bank, which climbed five sen to RM5.01. These gains were, however, not enough to offset the losses in the broader market. Among the broader indices, the FBM Emas Index decreased 24.36 points to 12,648.44, the FBM Top 100 Index inched down 23.43 points to 12,483.74, and the FBM Mid 70 Index contracted 50.09 points to 17,931.54.

By sector, the Industrial Products and Services Index was marginally lower by 0.41 of a point to 185.92, and the Plantation Index edged down 0.83 of a point to 9,301.09, while the Energy Index fell 0.13 of a point to 70.81 and the Financial Services Index rose 13.95 points to 20,230.93. The performance of these sectors will be closely watched in the coming days, as investors try to gauge the impact of the Fed's decision on the Malaysian economy. The FBM Emas Shariah Index tumbled 36.13 points to 12,469.24, and the FBM ACE Index fell 29.40 points to 4,895.31, indicating a broad-based decline in the market.

As the market continues to digest the implications of the Fed's decision, investors will be looking for clues on the direction of interest rates and the overall state of the global economy. The US strikes on Iran have added to the uncertainty, and it remains to be seen how this will play out in the coming days. For now, investors are adopting a cautious approach, and it is likely that the market will remain volatile in the short term. Details on the potential impact of the Fed's decision on the Malaysian economy are still emerging, and it will be important to monitor developments closely.

In the coming days, investors will be watching the reaction of other central banks, as well as the performance of the US economy, to gauge the potential impact of the Fed's decision. The Malaysian market, in particular, will be closely watched, as investors try to assess the potential implications of the Fed's decision on the local economy. With the Fed's decision marking a significant development in the global economy, it is likely that the market will continue to be driven by news and events from the US, at least in the short term. As the situation continues to unfold, investors will be looking for opportunities to buy or sell, depending on their outlook for the market.

Related: Bursa Malaysia · US Federal Reserve · Thong Pak Leng · US