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.
Chinese stocks slumped as skepticism over Beijing's stimulus plans and weak holiday spending data impacted market sentiment. The CSI 300 Index fell as much as 5.1%, marking its first loss in 11 days, while a gauge of Chinese companies listed in the US dropped 6.9% on Tuesday, led by declines in travel and consumption-related shares.
Investor enthusiasm over China’s stimulus-driven rally is fading, with no major new initiatives announced at a key policy meeting. Many strategists and fund managers have expressed concern that Beijing's spending pledges lack sufficient backing, while some fear that many stocks have become overvalued.
During the Golden Week holiday, consumer sentiment appeared muted, with tourist spending rising 7.9% compared to 2019, while the number of trips increased 10.2%. This resulted in a 2.1% drop in per-trip expenditure, signaling that despite the recent barrage of stimulus measures, consumer spending remains subdued.
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