KUALA LUMPUR, May 11 (Bernama) -- Late selling pressure dragged Bursa Malaysia into negative territory at the close, reversing earlier gains as profit-taking in heavyweight banking and transportation counters dampen overall market sentiment. At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.75 points to 1,745.31 from Friday’s close of 1,748.06. The benchmark index, which opened 5.94 points firmer at 1,754.0, moved between 1,744.99 and 1,754.0 during the trading session. Market breadth was positive with gainers leading losers 562 to 558. A total of 636 counters were unchanged, 897 untraded, and 12 suspended. Turnover increased to 4.20 billion units worth RM3.17 billion compared with 3.31 billion units worth RM3.00 billion on Friday.
Hong Kong's Fiscal Plan & Economic Adjustments
- Hong Kong government to cut 10,000 civil servant jobs over the next two years, freezing public sector wagesto curb spending.
- Financial Secretary Paul Chan announced a focus on economic integration with China, aiming to drive growth amid property market struggles and trade uncertainty.
- New spending cuts include a 7% reduction in regular expenditures over three years due to declining land sales revenue.
Property Market & Stimulus Measures
- Stamp duty reduction for homes valued up to HK$4 million (previously HK$3 million).
- Developer stocks surged:
- China Overseas Land & Investment (+8.4%)
- Sun Hung Kai Properties (+3.1%)
- Hang Seng Index jumped 4.1%, hitting a three-year high on market optimism.
Innovation & Revenue Generation Efforts
- HK$1 billion pledged to an AI research center to promote innovation.
- HK$10 billion fund created to invest in emerging industries.
- Exploring regulated basketball betting to convert illegal gambling revenue (HK$90 billion) into taxable income.
- Increasing air passenger tax from HK$120 to HK$200 and reviewing tunnel tolls/traffic fines.
Economic Outlook & Risks
- Hong Kong’s budget deficit for 2025 projected at US$87.2 billion, exceeding earlier estimates.
- GDP forecasted to grow 2%-3%, slightly above last year's 2.5% growth.
- Sluggish consumer spending & property downturn remain major economic headwinds.
- Northern Metropolis project to move forward, with land tenders for pilot sites starting later this year.
Summary:
- Hong Kong will cut 10,000 government jobs and trim spending to stabilize its economy.
- Property sector gets a boost from lower stamp duties, lifting developer stocks.
- New AI and industrial investments announced, but fiscal constraints limit stimulus options.
- Revenue-boosting measures include new taxes, betting regulation, and infrastructure projects.
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