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.
Markets entered choppy waters this week as inflation reared its head again, Trump’s Fed saga unnerved Wall Street, and tech stocks made bold moves across global exchanges.
Inflation Returns — And It’s Not Just Temporary
June’s CPI climbed to 2.7%, up from 2.4% in May. Although largely within expectations, tariff-driven price increases—especially in furniture and appliances—have reignited inflation fears. As Fed officials including John Williams and Raphael Bostic cautioned, inflation might continue rising into 2026. Williams estimated tariffs alone could push inflation up 1% in the next few quarters.
Investor Insight: Watch sectors tied to discretionary consumer goods and domestic manufacturers—higher input costs may compress margins in Q3–Q4 earnings.
Trump vs Powell: Crisis Averted… For Now
Markets briefly panicked over rumors that President Trump would fire Fed Chair Jerome Powell—only for Trump to walk back the statement hours later. While calm has returned, strategists warn that Fed independence is now a live market risk.
Deutsche Bank noted that if Powell were ousted, it could trigger a 3–4% drop in the USD and a 30–40bps spike in yields.
Chips Rise, Banks Wobble
Tech held strong even as bank shares slid. The Nasdaq Composite climbed 0.2% with Nvidia (NVDA) rallying after receiving assurance it can resume chip exports to China.
Meanwhile, JPMorgan, Wells Fargo, and BlackRock posted earnings beats—but markets punished warnings of slower H2 growth. Wells Fargo sank 5.5%, and BlackRock tumbled 5.9% despite hitting $12 trillion AUM.
SharpLink Gaming (SBET) made headlines by accumulating 20,279 ETH in just four hours, bringing unrealized crypto gains to $204 million.
Gap Watch: Banks & Energy Lead, ASML Tanks
Top consecutive gainers this week include:
Shinhan Financial (SHG) – 14-day winning streak
Deutsche Bank (DB) – 13 days up
HSBC & BAT – Both with 11-day streaks
Conversely, WPP, Enphase Energy (ENPH) and Amkor (AMKR) have posted consistent declines.
Biggest price gaps:
Unity Software (U) +5.2%
ASML Holding -6.5%
Joby Aviation (JOBY) +3.1%
Woori Financial (WF) -3.9%
Stock Spotlights
Avaland (AVALAND): Sold out Phase 1 of its Avalon project; strong sign of property demand in Cybersouth.
Gamuda: Secured 40-year water infra contract in Northern Perak—a major infrastructure catalyst.
Tan Chong Motor: UMA alert issued after stock surged 44% in a day, riding on Nissan EV hopes.
What to Watch Next:
Fed Meeting (July 29–30): All eyes on rate guidance.
Inflation Data (August): Crucial to validate or challenge the Fed’s "wait and see" stance.
Crypto Accumulation Trends: SBET's ETH buys could inspire institutional interest.
China Tariff Retaliation: Trump’s new global tariff letters could provoke geopolitical friction.
Investor Takeaway
This week’s signals are mixed: inflation is heating, central bank drama is escalating, but tech and select Asian banks are holding strong. For long-term investors, this may be a time to diversify into quality tech, defensive sectors, and infrastructure-related plays.
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