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.
The Russell 2000 Index (RUT) — a key barometer for small- and mid-cap U.S. stocks — hasn’t set a new high since Nov. 8, 2021 , marking nearly four years below its peak . Meanwhile, the S&P 500 continues to hit fresh records, creating the longest divergence on record between the two indexes while the S&P climbs. Why It Matters: A healthy market is usually “firing on all cylinders,” with small- and large-cap stocks moving in sync. Historical example: In 2007, the Russell 2000 peaked 3 months before the S&P 500, foreshadowing the Global Financial Crisis. Is This a Red Flag Now? Analysts say long-term (multi-year) divergences don’t necessarily signal major tops. Short-term divergences (1–3 months) are more predictive. In late 2021, the Russell lagged the S&P by 7%, preceding the 2022 bear market. Current Outlook: The past 3 months tell a different story: Russell 2000: +18.7% S...