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 International Monetary Fund (IMF) has expressed its readiness to work with Sri Lanka's newly elected leftist president, Anura Kumara Dissanayake, on the next steps of the country’s $3 billion bailout package. In a statement following Dissanayake’s inauguration, the IMF emphasized its commitment to collaborating with the new administration to ensure the continuation of the economic recovery efforts initiated during one of Sri Lanka’s worst economic crises in 2022.
The IMF noted that it will engage in discussions on the timing of the third review of the loan program with the president’s team "as soon as practicable." The organization underscored that the bailout had been crucial in stabilizing Sri Lanka’s economy, which faced severe inflation and widespread protests just two years ago.
During his campaign, President Dissanayake pledged to renegotiate aspects of the IMF loan program, which had included unpopular tax hikes and spending cuts that contributed to the country’s cost-of-living crisis. Although modifying the terms of the debt plan could risk delaying additional loans, the country must meet specific fiscal criteria before receiving the next round of funding.
Sri Lanka’s former president, Ranil Wickremesinghe, who initially brokered the deal with the IMF, warned that altering the loan terms could harm the country's fragile economy. Prior to the IMF’s financial support, the nation was grappling with rampant inflation, which decimated household savings and triggered large-scale protests.
Investors remain hopeful that President Dissanayake will stick to the core aspects of the IMF loan plan, with potential modifications. Rizvie Salih, a key member of Dissanayake’s coalition, reassured that while the country intends to continue with the IMF program, it will seek adjustments to better address the economic needs of the population.
The IMF also highlighted recent progress in Sri Lanka’s debt restructuring process, including an agreement with bondholders. However, the agreement is still contingent on confirmation from Sri Lanka’s Official Creditors Committee regarding equitable treatment. This progress is seen as a crucial step in the country’s path toward economic stability and recovery.
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