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.
Rising mortgage rates in the UK have likely pushed around 320,000 people into poverty, nearly 100,000 more than suggested by official statistics, according to a report released on Thursday.
Key Points:
Impact of Mortgage Rates:
- Current Rates: While rates have dropped from peaks above 6% for a typical two-year mortgage last year, they remain above 5%, significantly higher than pre-2022 levels.
- Historical Context: Mortgage rates began rising sharply in 2022.
Report Findings:
- Source: The report is from the Institute for Fiscal Studies (IFS) and funded by the Joseph Rowntree Foundation, an anti-poverty charity.
- Underestimated Impact: The report reveals that the rise in borrowing costs has impacted more people than official statistics indicate. Official household income data uses a single average interest rate for all households, which understates the number of people in poverty.
Researcher Insights:
- Statement from IFS: "This has led to the headline statistics understating the number of people in poverty, something set to get worse in next year’s data," said Sam Ray-Chaudhuri, research economist at the IFS.
- Inflation Impact: The report also highlights that poverty increases have been understated due to the unequal impact of inflation. Data from the Office for National Statistics shows inflation peaked at 14.3% for households in the lowest income decile, compared to 11.3% for those in the highest income bracket.
The findings underscore the significant financial strain rising mortgage rates have placed on UK households, exacerbating poverty levels more than previously recognized by official measures.
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