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.
Reserves Surge to 10-Year High
International reserves rose to USD120.6B, highest since Nov 2014.
Driven by FX revaluation gains and record gold holdings (USD4.1B, +7.8% MoM).
Ringgit Strength Dents Local Reserves Value
Despite USD gain, Ringgit reserves fell 3.8% MoM to RM510.1B.
Ringgit appreciated for 5th consecutive month, buoyed by weaker USD and trade sentiment.
Policy Rate Outlook: No Cut Yet
Kenanga sees BNM holding OPR steady despite market chatter of a rate cut.
GDP >4.0% and inflation risk cited as reasons to pause.
Rate remains attractive for bond inflows.
USDMYR Forecast
Year-end target at 4.08, backed by macro stability, FDI inflows, and potential Fed pivot.
Trade Tension Watch
US raised tariff on Malaysian goods to 25% (from 24%), effective Aug 1.
Malaysia still more favorable than peers, but Vietnam’s better tariff deal is a concern.
Outcome hinges on Malaysia’s negotiation success over the next 3 weeks.
Big Picture Insight
Gold and FX strength signal investor hedging amid geopolitical risk.
Malaysia well-positioned among emerging markets, but US trade policy and global slowdown remain risks.
Comments
Post a Comment