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.
Bank Negara Malaysia’s surprise OPR cut by 25bps is seen as a protective move to support growth amid global uncertainty, especially trade tensions.
🔍 Key Takeaways:
✅ Domestic activity still looks healthy – unemployment at 3%, retail trade up 4.1%
✅ Growth slowdown expected in 2H25, especially after the new 25% US tariff hits in Q3
✅ RAM Ratings expects 2025 GDP growth trimmed by 0.6 points due to tariff drag
✅ Banks may feel minimal impact on margins (2–3bps), with asset quality still sound
✅ Loan growth moderating, but no financial stress expected
✅ No further rate cuts anticipated — unless things get much worse
The cut should ease borrowing costs for households and businesses — and act as a safety net for potential shocks ahead.
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