KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
China announced a 300 billion yuan (US$41 billion) initiative aimed at revitalizing consumer and industrial spending. The plan, revealed by the National Development and Reform Commission, involves upgrading the nation's industrial and household equipment using funds from ultra-long special sovereign bonds sold this year.
Key Points:
- Funding Allocation: About half of the funds will provide subsidies to companies purchasing new equipment, while the rest will support local government incentives for consumer trade-ins, such as cars.
- Objective: The initiative aims to bolster consumer spending and solidify the foundation of a consumption recovery, addressing weak retail sales growth.
- Program Similarity: The initiative mirrors the “cash for clunkers” programs in other countries, encouraging both consumer and business expenditure.
- Government Measures: The government has expanded support to include energy sectors and increased subsidies for consumers trading in old cars. Additionally, a 15% rebate is offered for home appliance purchases meeting specific energy efficiency standards.
- Timeline: All funds are set to be allocated by the end of August, with simplified procedures to facilitate the program's implementation.
Officials emphasized that these measures are expected to positively impact consumption in the latter half of the year, despite facing significant pressure in the first half.
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