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.
More than 700 Swedish companies declared bankruptcy in September, marking a 17% increase from the previous year, according to data from credit reference agency Creditsafe. This uptick follows a 3% annual decrease in bankruptcies reported in August, signaling a concerning trend for the nation's economy.
Real Estate Sector Hardest Hit
The real estate sector faced particularly severe challenges, with bankruptcies in this industry more than doubling during the month. Despite a general sense of optimism regarding an economic recovery—fueled by the central bank's decision to reduce borrowing costs—this positive sentiment has yet to manifest in increased business activity. Henrik Jacobsson, CEO of Creditsafe in Sweden, noted, “This uncertainty continues to put pressure on businesses in Sweden.”
Ongoing Economic Struggles
Jacobsson highlighted rising unemployment and the necessity for many companies to lay off staff as critical issues. He pointed out that investments in the Swedish business sector are currently at historically low levels, indicating a tough fall ahead for many business owners.
Employee Impact and Sector Variations
Data indicates that the number of employees affected by bankruptcies rose by 50% in the first nine months of the year compared to the same period last year. However, not all sectors experienced the same level of distress. Retail bankruptcies decreased by nearly 20%, while those in the hotel and restaurant sectors, as well as construction companies, fell by 10%.
Conclusion
As the economic landscape remains uncertain, with a mix of rising bankruptcies and varying sector performance, the outlook for Swedish businesses continues to be precarious. The ongoing challenges faced by the real estate sector and the broader implications of rising unemployment will be critical areas to monitor in the coming months.
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