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.
Manufacturers Turn Cautious Despite Marginal Output Growth
Manufacturers across Southeast Asia are the least optimistic about future growth since July 2020, as Trump’s sweeping tariff rollout weighs on sentiment. According to S&P Global’s PMI data, confidence in future output dropped sharply, even as the headline index edged up to 50.1 in July, signalling a slight return to expansion after June’s steepest contraction in nearly four years.
Trump’s Tariffs Cloud Regional Outlook
Tariff Impact: The White House’s latest policy has imposed levies of 10%–40% on Asian exports, hitting key industrial hubs reliant on US-bound shipments.
Trade Sensitivity: Southeast Asia’s manufacturing sector serves as a bellwether for global trade. The prolonged uncertainty is dampening capital expenditure and hiring plans across the region.
Mixed Signals: While output and export orders improved slightly, S&P Global economist Maryam Baluch warned that “confidence continues to erode,” with growth expected to remain subdued.
Japan and South Korea Still Contracting
Elsewhere in Asia, Japan and South Korea saw factory activity contract for another month, underlining how trade tensions are affecting regional supply chains.
Analyst Takeaway:
The PMI rebound above 50 suggests short-term resilience, but the sharp drop in forward-looking sentiment highlights lingering fears over prolonged tariffs and weaker global demand. For investors, industrial and export-linke
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