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.
Catastrophe bonds, a once-niche investment strategy, have delivered significant returns for investors, but this success is now drawing scrutiny over the potential imbalance in risk and reward, especially for issuers facing rising costs. Key Highlights: Rising Returns: Investors in catastrophe bonds, which are issued by insurers, reinsurers, and governments for disaster coverage, have enjoyed double-digit returns, with an average of 15% so far this year after a 20% gain in 2023. Controversy in Jamaica: Concerns surfaced when Jamaica's catastrophe bond, issued in 2024, did not trigger a payout despite the devastation caused by Hurricane Beryl. The bond’s specific terms meant that the air pressure criteria required for a payout were narrowly missed, leaving investors shielded from losses. Issuer Costs Soar: The cost for Jamaica's US$150 million cat bond, arranged by the World Bank, increased by 60% compared to its predecessor, reflecting heightened climate risk and higher reins...