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.
Key Points French government bonds are attracting dip buyers after yields spiked on renewed political uncertainty. The 10-year OAT yield touched 3.55% this week, the highest since March, narrowing the gap with Italian bonds. The spread vs. German Bunds briefly widened to 82 bps before easing back to ~79 bps. Amundi CIO Vincent Mortier says spreads are now at levels that “attract marginal buyers,” helping to stabilize the market. Market Context The volatility was triggered by Prime Minister Francois Bayrou’s surprise call for a confidence vote on Sept. 8 , forcing him to seek either far-right abstentions or a highly unlikely alignment of leftist lawmakers. Political instability has weighed heavily on French assets since last June’s snap elections produced a hung parliament. Bonds: Investors are reassessing valuations, with yields now at attractive entry points. Equities: The CAC 40 Index has fallen 3.6% over the pas...