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.
UK gambling stocks slumped on Monday following reports that Chancellor Rachel Reeves may be considering tax increases on the industry, potentially amounting to £3 billion. Shares in major gambling companies took significant hits:
- Entain plc (owner of Ladbrokes) fell as much as 15%.
- Rank Group plc (operator of Grosvenor casinos) dropped nearly 7%.
- Evoke plc (owner of William Hill) slid 16%.
The report, first published by The Guardian, suggested that the UK Treasury is reviewing proposals from influential think tanks to double taxes on online casinos and bookmakers. While no final decision has been made, the changes could be announced in the upcoming budget.
Analyst Reactions:
- Citibank Inc. analyst Monique Pollard noted that potential tax hikes could have a "material" impact on earnings for major players like Flutter and Entain.
- Jefferies analyst James Wheatcroft called the report "unrealistic," adding that the proposed changes would significantly erode bookmaker profitability in the UK.
This news has led to significant market reactions, with New York-listed Flutter Entertainment also experiencing an 8.8% drop in late Friday trading.
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