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.
Singapore's central bank, the Monetary Authority of Singapore (MAS), kept its monetary settings unchanged, resisting the global trend of policy easing amid strong economic growth in the third quarter.
The MAS maintained the slope, width, and center of its currency band, which will keep the Singapore dollar on an appreciating path, helping to mitigate imported inflation. The decision reflects the central bank's view that the current monetary policy settings remain consistent with medium-term price stability.
While inflation risks are more balanced than in recent months, the MAS is still concerned about unit labor cost growth and its potential impact on services inflation. Core inflation is expected to remain contained, and the MAS projects it to end the year around 2%.
Singapore's gross domestic product (GDP) grew 2.1% in the third quarter, surpassing economists' expectations, and 4.1% year-on-year, driven by the manufacturing and construction sectors. The MAS expects GDP growth to reach the upper end of its 2%-3% forecast for the year.
However, the MAS acknowledged uncertainty in the economic outlook, citing risks from geopolitical tensions, global macroeconomic policy easing, and the durability of recent improvements in the electronics sector.
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