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.
Hong Kong stocks led gains across Asia on Monday, buoyed by the prospect that the U.S. economy may avoid a recession, while signs of state support propelled Shanghai-listed banks to record highs.
Key Highlights:
Hong Kong Market Performance: The Hang Seng Index in Hong Kong closed 0.8% higher at 17,569.57, leading gains in the region.
Shanghai Market Gains: The Shanghai Composite Index rose 0.49% to 2,893.67, and China’s blue-chip CSI 300 index climbed 0.34%. The banking sub-index surged 1.9%, marking its largest one-day percentage increase in six months.
Record Peaks for Chinese Banks: Shanghai-listed shares of Agriculture Bank of China reached a record high, while the Industrial and Commercial Bank of China (ICBC), the country’s largest lender, rose 2% and was poised for its ninth consecutive session of gains. Investors were drawn to the generous dividend payouts by Chinese banks, and sentiment was further boosted by heavy inflows into blue-chip exchange-traded funds favored by state-backed funds.
Gold Miners Rally: Gold miners, including Chifeng Jilong, Hunan Gold Corp, and Zhongjin Gold, saw significant gains as gold prices hovered near record highs.
JD Health Leads H-Shares: Among H-shares, JD Health International Inc was the top gainer, rising 7.93%, buoyed by positive results from JD.com last week, which lifted sentiment across the group.
Market Sentiment: Despite the gains, market sentiment remains cautious, with concerns persisting about the broader Chinese economy and the property market. Steven Leung, executive director at UOB Kay Hian, noted that investors are eagerly awaiting U.S. rate cuts, given the Hong Kong financial system's peg to the U.S. dollar.
U.S. Rate Outlook: U.S. Federal Reserve Chair Jerome Powell is set to speak at the Jackson Hole symposium on Friday, with investors expecting him to acknowledge the possibility of rate cuts.
Yuan Strengthens: The Chinese yuan was quoted at 7.1388 per U.S. dollar, strengthening by 0.29% from the previous close of 7.1595.
Year-to-Date Performance: Despite Monday's gains, the Shanghai stock index is down 2.7% for the year, and the CSI 300 has fallen 2.2%.
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