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.
Investors are betting on leveraged loans as US interest rates are expected to remain elevated with inflationary policies under President-elect Donald Trump . Major floating-rate debt funds, including Invesco Senior Loan ETF (BKLN) and SPDR Blackstone Senior Loan ETF (SRLN) , saw record inflows last week, with BKLN pulling in $576 million —its highest weekly intake in over a year. Leveraged loans, one of the year’s best-performing credit assets with 7.8% returns , have gained appeal as floating-rate structures allow investors to earn more as rates rise . Many expect Trump’s administration to support inflationary policies, pushing the Federal Reserve to maintain higher rates longer . " Higher for longer is here to stay ," stated John McClain from Brandywine Global Investment Management, highlighting a pro-business outlook and robust US economic growth as favorable conditions for leveraged loans. Analysts like Winnie Cisar of CreditSights warn against "the everything r...