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.
Bank Negara Malaysia (BNM) has taken a surprise pre-emptive step , cutting the Overnight Policy Rate (OPR) by 25 basis points to 2.75% . While this may slightly dent bank earnings (1%-4% hit to net interest margins), analysts at Kenanga maintain an OVERWEIGHT rating on the Malaysian banking sector—and here's why that’s a buying signal, not a warning. Key Takeaways for Investors: Resilience in a Lower-Rate Environment Despite the NIM compression, asset quality remains strong (industry GIL <1.5%), and the sector still expects earnings growth of 3-4% in 2025. Sector dividend yields of 5%-6% also add to the cushion, offering reliable income in uncertain markets. Valuation Bottoming Out Kenanga notes that sector valuations are near historical troughs (at -1SD PBV within a 10-year band). That implies limited downside and room for upside if economic sentiment recovers. Top Bank Picks Kenanga’s high-convictio...