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.
China’s runaway stock rally came to a halt on Wednesday, with commodities struggling as investors tempered their expectations for a robust Chinese economic recovery. This pressure spread across global shares, causing concerns about sustained growth.
China's benchmark indexes saw their largest daily losses since the start of the pandemic. Shanghai stocks dropped 6.6%, and blue-chips fell 7.1%, ending a 10-day winning streak. The pullback followed a news conference by China's National Development and Reform Commission, which failed to deliver significant new stimulus details.
Investor attention is now shifting to China's finance ministry, set to hold a news conference on Saturday, expected to unveil fiscal stimulus plans. Markets anticipate a spending package between two and 10 trillion yuan (US$280 billion to US$1.4 trillion) to boost the economy.
Despite the slowdown, some market players remain optimistic. Alexandre Marquis of Unigestion pointed out that domestic stocks are performing better, signaling potential positive news for China's economy.
Meanwhile, the MSCI world equity index fell 0.2%, and European stocks managed slight gains of 0.1%, with sectors like utilities, healthcare, and real estate in demand during uncertain times.
In the commodities market, Dalian iron ore and Shanghai copper posted losses, and Brent crude steadied at US$77.89 a barrel, following a 4.6% drop overnight.
In Japan, the Nikkei rose 1%, bolstered by Seven & I Holdings' 4.7% surge after reports that Alimentation Couche-Tard would raise its buyout offer, potentially marking the largest overseas buyout of a Japanese firm.
Investors are also keeping an eye on the US Federal Reserve, with minutes from the September meeting due to be released, and comments from several Fed officials expected later in the day.
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