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.
Earnings from Japan’s Fast Retailing Co., Ltd., the owner of Uniqlo, and Seven & i Holdings Co., Ltd., which operates 7-Eleven, are set to show how these retailers are pursuing international growth to offset weak domestic consumer demand.
Seven & i is facing challenges with its operating income, largely due to weak consumer sentiment in Japan. However, the spotlight remains on the $38.7 billion takeover approach by Alimentation Couche-Tard Inc., which could lead to a restructuring of Seven & i’s business, including the potential sale of subsidiaries or assets. The company has been exploring the sale of part of its stake in Seven Bank Ltd. and has approached buyers for its retail and supermarket units.
On the other hand, Uniqlo's owner Fast Retailing is likely to report steady profit growth, primarily driven by strong international business. Uniqlo’s hot-weather clothing has performed well, with robust summer demand, according to Bloomberg Intelligence analysts. Uniqlo plans to open around 80 stores annually in greater China, fueling a projected 13% annual sales gain in the region through 2026, outpacing the 3% growth forecast in Japan.
Meanwhile, Samsung Electronics Co., Ltd. will shed light on the technology sector's health and its progress in the artificial intelligence (AI) space. Samsung's folding phone models and higher prices for memory chips used in AI applications have boosted operating profit. However, potential job cuts in Southeast Asia, Australia, and New Zealand are in focus as Samsung works to keep up with rivals in AI-related products.
Elsewhere, LG Energy Solution Ltd. continues to face pressure due to weak demand for electric vehicles (EVs), particularly in Europe and the US. Analysts predict that LG’s third-quarter net income may have halved as the company shifts resources to its energy storage businesses.
Fast Retailing’s full-year operating profit growth is expected to match the previous year, driven by Uniqlo’s overseas expansion. Conversely, Seven & i’s second-quarter operating profit likely declined again, although its overseas convenience store operations remain a bright spot.
Lastly, Tata Consultancy Services (TCS) is expected to report improved deal flow from the financial sector, with revenue growth projected at 5.1% in constant currency terms, the highest in five quarters.
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