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.
Toyota Motor Corp has increased its share buyback program to ¥1.2 trillion (US$8.3 billion), capitalizing on robust demand across its key markets in Japan, Europe, and North America. The world’s largest carmaker added ¥200 billion to its previously announced ¥1 trillion stock repurchase plan, according to a Tuesday filing. This move could result in Toyota buying back up to 3.93% of its shares, citing recent share price levels as a key factor in the decision.
While the announcement wasn’t entirely unexpected, Bloomberg Intelligence senior auto analyst Tatsuo Yoshida commented that reducing strategic shareholdings will continue to be a priority for Toyota, much like its ongoing efforts to electrify its fleet. However, the pace of the buyback will depend on how it affects the market.
Despite Toyota’s stock performance being relatively flat for the year, with just a 1% increase compared to the Nikkei 225’s 13.4% rise, the company has posted strong financial results. For the quarter ending June 30, Toyota reported an operating profit of ¥1.31 trillion, a 17% increase from the previous year. The company’s hybrid models have been performing exceptionally well in North America, and the weaker yen has also contributed to boosting Toyota’s income in its home currency.
This extended buyback program, which was first announced in May, will continue through April 2025. The move aligns with the Japanese government’s broader initiative to encourage large corporations to unwind cross-held shareholdings, a practice long used to solidify business relationships. In line with this push, Toyota revealed in July that it would buy back ¥806.8 billion of its stock from major Japanese financial institutions, including Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group.
These financial groups are expected to divest a combined ¥1.32 trillion worth of strategic shareholdings in Toyota, further reinforcing the company’s efforts to streamline its ownership structure and enhance shareholder value.
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