KUALA LUMPUR, Sept 28 (Bernama) -- Bursa Malaysia ended marginally lower on Monday amid selling activity as the market lacked fresh catalysts to spur investors’ buying interest, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.60 points, or 0.09 per cent, to 1,670.02, from Friday’s close of 1,671.62. The benchmark index, which opened 0.93 of-a-point higher at 1,672.55, moved between 1,668.61 and 1,674.11 throughout the trading session. Market breadth was negative as losers surpassed gainers 748 to 388, while 517 counters were unchanged, 1,271 untraded and 91 suspended. Turnover slipped to 3.11 billion units worth RM2.40 billion from 4.07 billion units valued at RM2.69 billion on Friday.
The UK government reported a smaller-than-expected budget deficit in November, offering a brief respite for Finance Minister Rachel Reeves, who faces mounting challenges to balance public finances amid a slowing economy and rising inflation.
Key November Borrowing Figures
- Public Sector Net Borrowing:
- £11.249 billion, lower than the £13 billion forecast by economists polled by Reuters.
- A £1.8 billion reduction in inflation-linked debt compensation due to a 0.3% fall in the retail price index(RPI) in September helped narrow the deficit.
Year-to-Date Borrowing
- April–November 2024/25 Financial Year:
- Borrowing totaled £113.2 billion, similar to the same period in 2023/24.
- Despite November’s improved figures, borrowing has exceeded expectations in eight out of 11 months in 2024.
Challenges Ahead for Reeves
Fiscal Rules Under Strain:
- Reeves pledged to balance day-to-day spending with tax revenues by the end of the decade.
- Plans include significant borrowing for public services and infrastructure investment, diverging from previous Conservative policies.
Economic Headwinds:
- Zero GDP Growth: The Bank of England predicts stagnation for Q4 2024.
- Rising Inflation: Recent upticks could drive higher borrowing costs.
- Alison Ring of ICAEW warns that "money remains extremely tight and that is unlikely to change any time soon."
Tax Increases:
- Reeves’ budget announced the largest tax hikes in three decades, primarily through higher employer social security contributions, to stabilize public finances.
Revised October Borrowing Data
- October’s borrowing was adjusted upward by £800 million, highlighting ongoing volatility in fiscal metrics.
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