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Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 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.

Wall Street Hits 6-Month Low as War Fears Drive Inflation and Rate Risks Higher

US equities extended their decline, with the  S&P 500 falling to a six-month low , as escalating Middle East tensions heightened  inflation fears and interest rate uncertainty . Broad Selloff as War Enters Fourth Week Markets weakened sharply as the  US-Israel-Iran conflict showed no signs of easing , raising concerns of a prolonged geopolitical shock. S&P 500 Index  fell  1.51%  to 6,506 Nasdaq C omposite Index  dropped  2.01% Dow Jones Industrial Average  declined  0.96% The  Russell 2000  also slid  2.26% , now down about  10% from recent highs , signalling broader market weakness. Since the conflict began in late February, major indices have fallen  4%–7% , reflecting deteriorating sentiment. Inflation Concerns Drive Rate Expectations Higher Rising oil prices continue to push  inflation expectations upward , prompting markets to reassess monetary policy. Futures markets now suggest the  Fede...

Small-Cap Stocks Struggle as Investor and Executive Sentiment Worsens

Russell 2000 Extends Decline Amid Policy Uncertainty The  Russell 2000 Index, which tracks small-cap stocks, has fallen about 10% from its late-2024 peak , as optimism over  US President Donald Trump’s policies fades . Corporate leaders are also growing increasingly pessimistic, with  Bank of America’s analysis showing the most negative sentiment on small-cap earnings calls since 2004 . Reality Check for Small-Cap Optimism Small-cap stocks initially surged post-election on hopes that  Trump’s pro-business policies and tariffs would boost US-based companies . However, reality has set in, as  higher-for-longer interest rates, economic uncertainty, and potential trade war risks pressure earnings and balance sheets . Sectors vulnerable to  trade tariffs, including autos, capital goods, and transportation, make up 15% of the Russell 2000 , compared to just 9.1% in the  S&P 500 , according to Bloomberg Intelligence. Inflation, Growth, and Interest Rate P...