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 Market Recap
Wall Street at Record Highs as Tech Stocks Rally
The S&P 500 and Nasdaq Composite extended gains to new all-time highs overnight, led by strong performances in AMD and Tesla. The $S&P 500 Index (.SPX.US)$ rose 0.36% to 6,740.28, while the $Nasdaq Composite (.IXIC.US)$ climbed 0.71% to 22,941.67.
$Advanced Micro Devices (AMD.US)$ surged 23.7% following a landmark multi-year AI chip supply deal with OpenAI, expected to generate tens of billions in revenue. $Tesla (TSLA.US)$ gained 5.5% amid renewed speculation about an upcoming model launch.
Meanwhile, gold prices hit a new record, touching US$3,994.50/oz, as investors sought safe-haven assets amid the prolonged US government shutdown. Bitcoin also set a fresh high above US$126,000, with inflows into crypto ETFs accelerating.
The $Dow Jones Industrial Average (.DJI.US)$ edged down 0.14% due to a 5.1% decline in Verizon after news of a leadership change.
Bursa Malaysia Outlook
KLCI Edges Higher Despite Broader Market Weakness
The $FTSE Bursa Malaysia KLCI (.KLSE.MY)$ closed 0.19% higher at 1,638.09, lifted by late buying interest in select blue chips. However, overall sentiment remained subdued with 729 decliners vs 403 gainers, on a volume of 3.7 billion shares worth RM2.6 billion.
Top gainers included PPB Group (+2.94%, RM10.52), while YTL Power (-2.78%, RM4.19) led laggards.
Analysts noted that investors are likely to remain cautious ahead of Budget 2026, balancing profit-taking with selective accumulation in defensive sectors.
Key Domestic Developments
Malaysia’s Debt Challenge Intensifies
The Auditor-General reported that RM490 billion in federal debt is due within five years, raising refinancing risks. Revenue arrears rose 12.8% to RM44.55 billion, with RM20.67 billion potentially unrecoverable.
Despite these headwinds, debt growth slowed to 6.4% in 2024 (from 11.4% in 2021), as the government strengthens tax collection and implements new payment and enforcement systems.
Durian Exports to China Surge
Malaysia’s durian exports to China reached RM6.37 billion since 2018, totaling 115,359 tonnes of fresh and frozen fruit. The Ministry of Agriculture projects exports to rise to RM1.8 billion by 2030, supported by new market entries in Taiwan and Peru.
Stocks to Watch
$CDB (6947.MY)$ – IMMA Technology Sdn Bhd has filed a RM72.6 million lawsuit against CelcomDigi, alleging losses from a 2021 service contract.
$PETDAG (5681.MY)$ – Subsidiary of DNEX (4456.MY), OGPC, secured a one-year maintenance contractfor 50 PETRONAS Dagangan stations in the Klang Valley.
$SIME (4197.MY)$ – To extend a £6 million loan via its Hong Kong arm to Battersea Project Holding Company.
$LIONIND (4235.MY)$ – Seeking strategic partners to revive its steel operations at Banting and Bukit Raja plants.
$CITAGLB (7245.MY)$ – Signed a two-year joint development deal with Keppel Decarb for bio-compressed natural gas projects across three Malaysian states.
$MPIRE (7943.MY)$ – To rebrand as Greentronics Technology (GREENTEC) effective Oct 8, 2025.
$TAWIN (7097.MY)$ – Terminated its 2022 stake sale in Royce Pharma Manufacturing due to financing issues.
$HHRG (0175.MY)$ – Proposed bonus issue of warrants (2-for-5) at no cost to shareholders.
Cheeding Holdings – Awarded a power supply link contract from $TENAGA (5347.MY)$ for a Johor data center, completion in 240 days.
Bottom Line:
With US markets hitting new highs and gold surging amid macro uncertainty, Bursa Malaysia may trade cautiously in the near term. Domestic attention will likely focus on fiscal sustainability, Budget 2026 expectations, and corporate developments such as CelcomDigi’s pending lawsuit.
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