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.
Most Asian currencies and stocks advanced on Monday, with Thai markets in the spotlight following the election of a new prime minister and stronger-than-expected economic growth in the second quarter.
Key Highlights:
Thai Market Surge: The Thai baht strengthened by up to 0.5%, reaching its highest level since early January, while the stock market gained nearly 1.2%. The robust performance was supported by Thailand's 2.3% GDP growth in Q2, which exceeded the 2.1% expected by analysts.
Political Stability: The election of Paetongtarn Shinawatra as Thailand's youngest prime minister last Friday eased some political uncertainty that had weighed on the country’s economy. However, analysts caution that political risks remain, and much will depend on how quickly the new cabinet is formed.
Regional Currency Strength: The Malaysian ringgit surged 1.3% to a 1.5-year peak of 4.370 per dollar, while the South Korean won rose 1.4%, reaching its highest level since late March. Other Asian currencies, including the Singapore dollar, Indonesian rupiah, and Taiwan dollar, also saw gains between 0.3% and 0.8%.
Investor Sentiment: The ringgit’s performance has been bolstered by investor interest in Malaysia as an alternative investment destination. Malaysian stocks have been among the best performers in the region.
Central Bank Watch: Investors are also closely monitoring upcoming central bank decisions in Thailand, Malaysia, and South Korea, with expectations that all three will maintain their current interest rates.
Global Focus: Globally, attention is turning to the Jackson Hole symposium later this week, where Fed Chair Jerome Powell is expected to address economic concerns and the Federal Reserve’s interest rate trajectory.
Asian Shares: The Philippines' benchmark index rose by as much as 1.4%, holding near early April highs, while markets in Malaysia, Indonesia, and Taiwan climbed between 0.1% and 1.1%.
Outlook: The combination of strong economic data from Thailand and a stabilization in the political landscape has provided a boost to investor confidence, although analysts remain cautious about potential long-term risks.
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