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.
Global asset giant T. Rowe Price is bullish on Malaysia and Thailand bonds, citing potential for more rate cuts to drive returns—despite fading tailwinds from currency strength.
Key Takeaways:
- Malaysia: After its first policy cut in 5 years, Bank Negara may continue to ease—making longer-dated bonds attractive
- Thailand: Persistent deflation supports Thai debt, especially medium-term bonds
- "Currency gains may slow, but local bond returns still look strong" — Leonard Kwan, Portfolio Manager, T. Rowe Price
Year-to-Date Returns (Local Bonds):
Thailand: +13.8%
Malaysia: +10.2%
What’s Driving This View?
Slowing US rate cut hopes → Dollar rebound = less upside for FX
Despite that, Ringgit & Baht still up >5% in 2025
Strong domestic demand & easing inflation in Southeast Asia boost bond appeal
Strategy Shift Ahead?
Kwan also favors Indonesian bonds, expecting 2-3 more cuts despite the rupiah's underperformance (down -1.3% YTD).
The Smart Money's Move:
While others watch for the next US rate move, T. Rowe is positioning for local bond rallies in ASEAN. Time to look East?
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