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.
Japan's Nikkei share average ended at a three-week low on Monday, extending its decline to a fourth session, as chip-related stocks tumbled after their Wall Street peers closed sharply lower in the previous session.
Key Takeaways:
- Nikkei Decline: The Nikkei fell 1.16% to 39,599, its lowest close since June 28, marking its longest losing streak since October last year. The broader Topix was also down 1.16% to 2,827.53.
- Chip Stocks Impact: Chip-equipment maker Tokyo Electron fell 2.57%, chip-testing equipment maker Advantest lost 3.53%, and silicon-wafer maker Shin-Etsu Chemical slipped 2.15%.
- Global Influence: The Japanese market reflected negative overseas cues, particularly the slump in US stocks on Friday due to a global technical outage caused by a software glitch, which added uncertainty to the market.
- US Market Impact: Nvidia shares led a sell-off in chip-related stocks, with the Philadelphia SE Semiconductor index dropping over 3%.
- Trump Trade: Heavy industry maker IHI fell 3.86% as investors sold stocks that had previously rallied on higher chances of Donald Trump winning the US presidential race. Biden's announcement to end his reelection campaign and endorse Kamala Harris triggered a sell-off as market players booked profits.
- Market Breadth: Of the Nikkei's 225 constituents, 170 fell and 52 advanced, with three trading flat. Only four of the Tokyo Stock Exchange's 33 industry sub-indexes rose, with railway firms up 1.22% and the airline sector inching up 0.41%.
The decline in Japan's Nikkei highlights the sensitivity of global markets to political developments and technical disruptions, with significant impacts on key sectors like technology and heavy industry.
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