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.
Optimism grows that Malaysia’s currency could strengthen further, fueled by expected monetary easing and structural reform. Analysts See Ringgit Gaining Against the Dollar OCBC forecasts the ringgit could strengthen to 4.15/USD in Q4 if Bank Negara Malaysia (BNM) delivers further rate cuts. Maybank projects an even stronger outcome— 4.10/USD by December . MUFG expects a 1.5% gain from recently stalled levels, supported by better export competitiveness from a softening US tariff regime. Supporting Factors: Policy and Sentiment Alignment BNM cut rates 25 bps in July , becoming the last central bank in Southeast Asia to do so. Record foreign inflows : Q2 saw US$4.3 billion (RM17.4 billion) flow into Malaysian bonds, indicating strong capital interest. Federal Reserve easing trends and a weaker greenback help cushion ringgit depreciation risks. Structural Tailwinds Underpin Confidence The government’s bold five-year growth blueprint through 20...