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.
Following Donald Trump's presidential election win, US mortgage rates have continued their upward trend. The contract rate for a 30-year fixed mortgage increased by five basis points to 6.86% in the week ending Nov. 8, marking the highest level since July. Over the past six weeks, rates have risen by 72 basis points, the most significant surge in two years.
This rise in mortgage rates aligns with the movement of Treasury yields, which have been influenced by investor expectations of higher inflation and budget deficits under the new administration. Consequently, the Federal Reserve may adopt a cautious approach to interest rate cuts in the near future.
The Mortgage Bankers Association (MBA) reported a decline in refinancing applications for the seventh consecutive week, the longest streak since April 2022. However, applications for home purchases saw a slight uptick. The MBA's weekly survey, encompassing over 75% of all US retail residential mortgage applications, reflects these trends.
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