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.
British estate agents have observed a notable increase in buyer demand following the Bank of England's (BOE) decision on August 1 to begin cutting interest rates from a 16-year high, according to property website Rightmove.
Key Highlights:
Buyer Demand Surge: Buyer inquiries in August were 19% higher compared to the same period last year, marking a significant jump from the 11% annual increase seen in July, as reported by Rightmove, which lists properties for over 90% of UK estate agents.
Impact of Rate Cut: The BOE's rate cut has sparked renewed optimism among potential home buyers, even though mortgage rates have not yet seen a substantial decrease. "The long-hoped-for first cut has finally arrived, and mortgage rates are heading downwards, which is positive for home-mover sentiment," said Tim Bannister, Rightmove's director.
Mortgage Rate Trends: The average interest rate on a five-year fixed-rate mortgage has dropped to 4.80%, down from 5.82% a year ago when the BOE had just raised rates to their peak of 5.25%.
Market Expectations: Financial markets are anticipating at least one or possibly two more quarter-point rate cuts by the BOE this year, suggesting a continued easing of borrowing costs.
Property Prices: The average asking price for newly advertised properties on Rightmove between July 7 and August 10 fell by 1.5% compared to the previous month, to £367,785, a typical seasonal decline for August. However, asking prices were still 0.8% higher than a year earlier, showing a slight improvement from the 0.4% annual rise reported in the previous month.
Sales Data: Official figures based on completed sales in June indicated that prices were 2.7% higher than a year earlier, marking the joint-biggest increase since March 2023.
Outlook: The BOE's rate cut has provided a boost to the UK housing market, with increased buyer interest and a downward trend in mortgage rates, potentially signaling a more favorable environment for home buyers in the months ahead. However, market dynamics will continue to be influenced by the pace of further rate cuts and broader economic conditions.
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