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.
Stocks hit new all-time highs, with investors eagerly awaiting corporate earnings to bolster confidence in a potential soft landing for the economy. The S&P 500 rose nearly 1%, marking its 46th record close of the year, driven by optimism about earnings reports from major companies. Despite reduced third-quarter forecasts, many believe that Corporate America will deliver positive surprises this earnings season.
Analysts expect S&P 500 firms to post their weakest growth in a year, with an average 4.3% increase in earnings, according to Bloomberg Intelligence. However, corporate guidance suggests potential growth of around 16%, indicating companies could exceed expectations once again.
Nvidia Corp, Apple Inc, and Tesla Inc led gains among megacap stocks, with Goldman Sachs and Citigroup advancing ahead of their quarterly earnings reports.
The Nasdaq 100 added 0.8%, and the Dow Jones climbed 0.5%. Treasury futures dipped slightly, while the US dollar edged up. Meanwhile, oil prices fell 3% as concerns over Middle East supply disruptions eased.
The upcoming earnings reports from financial heavyweights like JPMorgan Chase & Co and Wells Fargo are expected to highlight benefits from lower interest rates, which have spurred debt underwriting and refinancing activity.
Analysts at UBS Global Wealth Management and Morgan Stanley remain positive on US equities, citing strong corporate profit growth, AI-driven innovations, and a supportive macroeconomic environment. Despite concerns about high valuations, strategists argue that equities offer attractive returns, especially as companies tied to economic momentum continue to perform well.
Although some volatility is expected due to factors like geopolitical risks and US elections, analysts at Goldman Sachs are maintaining an overweight stance on equities for the next three months, expecting solid returns from earnings growth and valuation expansion.
Corporate updates include:
- B Riley Financial Inc agreed to sell a majority stake in Great American Holdings to Oaktree Capital Management.
- Adobe Inc launched new AI video tools to tap into the growing demand for artificial intelligence technology.
- Caterpillar Inc was downgraded to underweight by Morgan Stanley, citing a disconnect between its fundamentals and stock price.
- SoFi Technologies Inc secured a deal with Fortress Investment Group to fund US$2 billion in personal loans.
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