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.
Asian stocks and oil prices tumbled on Wednesday as renewed worries over US economic growth and a sharp selloff in technology shares triggered a flight from risky assets. The decline followed a significant tech selloff on Wall Street, led by a nearly 10% drop in Nvidia, and continued concerns over weak economic data from China.
Key Takeaways:
Broad Market Declines Led by Asia and Tech Stocks: Japan's Nikkei led the downturn in Asia with a more than 3% fall, while the MSCI Asia-Pacific shares outside Japan lost 1.6%. The selloff extended globally, with US and European futures also in decline. The pullback was driven by a confluence of factors, including weak US manufacturing data and a cautious return to trading after the US Labor Day holiday, prompting widespread portfolio de-risking.
Oil Prices Hit Multi-Month Lows: Brent crude and US crude oil prices dropped to their lowest levels since December, falling to $73.32 and $69.83 per barrel, respectively. Concerns over China's economic outlook, particularly its sluggish recovery and impact on demand, exacerbated the decline. As the world's largest oil importer, China's weakened demand expectations have placed further downward pressure on oil prices.
Heightened Market Sensitivity to Upcoming US Economic Data: Investors are closely watching upcoming US economic data, including job openings, jobless claims, and the non-farm payrolls report due on Friday. Given the Federal Reserve's focus on the labor market, these figures could influence the size and timing of any rate cuts. While there is optimism around potential rate reductions, analysts caution that such cuts could signal deeper economic problems than anticipated.
Overall, the market outlook remains cautious, with uncertainties around US growth, China's economic performance, and upcoming data releases contributing to a challenging trading environment.
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