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.
The US Export-Import Bank (Ex-Im Bank) has authorized a US$690 million loan to support the construction of a petrochemical plant in Malaysia, despite objections from climate activists. Critics argue that the project contradicts the Biden-Harris administration's promise to halt public financing for overseas fossil fuel projects.
In 2021, President Joe Biden issued an executive order to curb such financing, and the US signed an international pledge with 33 nations to cease supporting fossil fuel ventures. Nevertheless, the Ex-Im Bank, an independent agency, has continued to back such projects, authorizing US$2.2 billion in new oil, gas, and coal-related projects abroad since May 2023.
Environmental groups have criticized the Ex-Im Bank’s focus on fossil fuel investments, arguing in a letter to US Treasury Secretary Janet Yellen and the bank’s chair Reta Jo Lewis that this undermines the US’s climate credibility. Despite this, the Pengerang Energy Complex in Malaysia, which is part of a major oil, gas, and petrochemical hub, received backing. The complex has agreements with companies like Chevron Corp, Equinor Asa, and PTT PCL.
The facility will produce 6.5 million metric tons of petrochemicals and oil products annually, including jet fuel, light naphtha, and low sulfur fuel oil. Honeywell UOP, which is providing engineering and design for the project, is expected to implement technology that will reduce carbon dioxide emissions by 30% when operational.
Despite efforts to decarbonize, environmentalists are urging the Biden administration to take stronger actions to stop Ex-Im from supporting projects they see as undermining the US’s climate goals. Friends of the Earth president Erich Pica emphasized the need for Biden to prevent the bank from backing polluting industries if his climate commitments are to be taken seriously.
Comments
Post a Comment