KUALA LUMPUR, Jan 8 (Bernama) -- Bursa Malaysia’s benchmark index closed lower on Thursday amid profit-taking in big-cap stocks, as investors shifted their focus to smaller-cap counters against the backdrop of weaker regional market performance. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 7.26 points or 0.43 per cent to 1,669.57 from Wednesday’s close of 1,676.83. The FBM KLCI opened 2.61 points lower at 1,674.22 and moved between 1,666.34 and 1,674.44 throughout the day. On the broader market, gainers led losers by 579 to 489, while 565 counters were unchanged, 1,016 untraded, and 12 suspended. Turnover was slightly higher at 2.79 billion units worth RM2.84 billion from Wednesday’s 2.73 billion units worth RM2.76 billion.
Key Highlights:
- Loan Purpose: The $15 billion conditional loan will fund climate resilience projects, upgrade electrical grids, and refurbish PG&E’s hydroelectric infrastructure and power lines.
- Additional Investments: The funds will also support battery energy storage expansion and enhanced transmission systems.
- Strategic Timing: The Biden administration is accelerating financing ahead of President-elect Donald Trumptaking office on Jan 20, given uncertainties about future climate-related funding.
Why It Matters
- Climate Resilience: PG&E’s infrastructure upgrades aim to tackle challenges posed by extreme weather events, including wildfires and hurricanes, which threaten California's power grid.
- Energy Transition: Enhancing storage and transmission aligns with the rising energy demands from industries like data centers, crucial for the clean energy shift.
- Utility Funding: The loan follows PG&E’s recent $2.4 billion stock offering, as utilities increasingly seek external financing to modernize outdated grids.
Next Steps
- The US Department of Energy and PG&E must meet technical, legal, and environmental conditions before finalizing the loan.
- Funds will be disbursed over several years in cash installments.
This record loan highlights the urgency of strengthening US energy infrastructure to address climate risks while supporting the clean energy transition.
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