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.
New Zealand's financial system will experience a gradual reduction in settlement cash over the next year, moving from a state of "abundant" liquidity to "ample", according to Reserve Bank of New Zealand (RBNZ) Assistant Governor Karen Silk. This shift reflects the winding down of balance sheet tools implemented during the Covid pandemic to support market liquidity.
Speaking at a conference in Sydney on Tuesday, Silk projected that ample settlement cash levels could be reached by the second half of 2025. She emphasized that market participants need to prepare for a reduced liquidity environment compared to recent years, and the RBNZ is working to ensure a smooth transition.
As cash availability tightens, wholesale interest rates may become more sensitive to changes in settlement balances, such as bond maturities and government spending or tax transactions. Silk noted that liquidity management will require more active involvement from both market participants and the RBNZ.
The RBNZ will take a hybrid approach to liquidity provision, combining daily operations and standing facilities for on-demand liquidity with foreign exchange swaps. Silk also mentioned that the RBNZ does not see a need for additional asset purchases as part of its toolkit at this time.
Silk concluded by highlighting ongoing considerations, including the Committed Liquidity Facility and the Exchange Settlement Account System review, which may further influence settlement cash demand in the future.
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