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.
The Philippines’ economic growth accelerated in the second quarter, despite borrowing costs being at a 17-year high.
Key Highlights:
- GDP Growth: The gross domestic product (GDP) rose by 6.3% in the April-June period from a year ago, as reported by the statistics agency on Thursday. This matches the median estimate in a Bloomberg survey and compares with a revised 5.8% growth in the previous quarter.
- Implications for Monetary Policy: The strong economic performance may prompt the central bank to reconsider a potential rate cut next week. Bangko Sentral ng Pilipinas Governor Eli Remolona indicated earlier this week that a shift to monetary policy easing on Aug 15 was "a little bit less likely" after inflation rose last month.
Growth Target:
- The latest GDP figures support the government’s 6%-to-7% growth target for the year.
Economic Drivers:
- Household Spending: Bloomberg Economics’ Tamara Henderson noted that signals for household spending, the primary growth engine, suggest strengthening in private consumption. Real incomes have increased, and remittances from overseas have picked up, contributing to economic expansion.
- Forecasts: Henderson had forecast a 6.8% expansion last quarter, partly due to base effects, underscoring the robust economic performance.
The continued growth in the Philippine economy reflects resilience and potential adjustments in monetary policy to sustain this momentum.
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