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.
Canada's unemployment rate unexpectedly fell to 6.5% in September, down from 6.6%, as the country added 46,700 jobs, according to Statistics Canada. This stronger-than-expected job growth bolsters the Bank of Canada’s case for gradual interest rate cuts and raises hopes of a soft landing for the economy. Economists had predicted a slight rise in unemployment to 6.7% with more modest job gains.
The job growth was driven by full-time positions, which surged by 112,000, offsetting a decline of 65,300 part-time jobs. The private sector added 61,200 jobs, while the public sector shed 23,600. The overall labor force grew modestly, by just 15,900 people.
This labor market strength suggests that labor demand remains resilient, which may support the central bank's stance of continuing gradual rate cuts to tame inflation without triggering significant job losses. Canadian bonds underperformed after the report, with yields rising and the Canadian dollar gaining against the US dollar.
Ahead of the Bank of Canada’s October 23 meeting, market expectations are split between a 25 and 50 basis-point rate cut, with former Deputy Governor Paul Beaudry indicating he wouldn't be surprised by a 50 basis-point cut. This report, which is the last before the next rate decision, may ease concerns about a sharp increase in layoffs and support the likelihood of further cuts.
Wage growth also slowed to 4.5% annually, down from 4.9%. Job gains were led by sectors such as information, retail, culture, and trade, while education, health care, and agriculture saw job losses. Youth unemployment fell to 13.5% in September, down from 14.5% in August.
Economists widely expect a 25 basis-point cut at the Bank of Canada’s next meeting.
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