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.
US consumers’ expectations for inflation over the next year dropped for the second month in a row in June. According to a Federal Reserve Bank of New York survey, consumers now anticipate prices to rise by 3% annually, down from 3.2% in May.
This decline brings short-term inflation expectations back to the levels seen from December to April, before they increased to 3.3%.
The survey also showed that consumers expect home prices to increase by 3% over the next year, down from 3.3% in May. Additionally, consumers foresee slower rises in the costs of gas, food, medical care, and rent over the next 12 months.
A report due on Thursday is expected to confirm that the core consumer price index, excluding food and energy, rose by 0.2% in June, marking the smallest back-to-back gains since August.
In the longer term, the survey revealed a slight increase in the three-year inflation outlook to 2.9% from 2.8%, while the five-year expectation fell to 2.8% from 3%.
Key Takeaways:
- Inflation Expectations: Consumers expect prices to rise by 3% over the next year, down from 3.2% in May.
- Home Prices: Expectations for home price increases dropped to 3%, aligning with the 12-month average.
- Cost of Living: Anticipated slower increases in the costs of gas, food, medical care, and rent.
- Core CPI: The core consumer price index is expected to rise by 0.2% in June.
- Long-Term Outlook: Three-year inflation expectations rose slightly to 2.9%, while five-year expectations fell to 2.8%.
These trends suggest a cooling of near-term inflation pressures, although some long-term concerns remain.
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