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.
China State Construction Engineering (SHSE:601668) has seen its stock climb 43% over the past five years, but its financials suggest investors should tread carefully. Key Metric: ROCE Falling Return on Capital Employed (ROCE): 6.8%, based on the latest 12 months. Down from 9.6% five years ago , signaling a decline in profitability from its capital investments. ROCE is roughly in line with the construction industry average of 5.7% , but low in absolute terms. Capital Use vs. Returns The company has been deploying more capital, yet sales haven’t grown significantly in the last year. This suggests ongoing long-term investments that may take time to yield results. High Liabilities Add Risk Current liabilities: 55% of total assets. Heavy reliance on short-term creditors raises operational risk. A lower ratio would indicate stronger financial stability. Takeaway While China State Construction Engineering is reinvesting in its business, declining returns and high liabil...