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 Federal Reserve reduced interest rates by half a percentage point on Wednesday, marking the beginning of what is expected to be a series of monetary policy easings. The Fed’s rate-setting committee stated that it has gained greater confidence that inflation is moving toward the 2% target , prompting a larger-than-usual rate cut to a range of 4.75%-5.00% . Despite inflation still being "somewhat elevated," the Fed justified the rate cut by noting progress on inflation and a balanced outlook on employment and price stability. While most policymakers agreed on the 50-basis-point reduction, Governor Michelle Bowman dissented, favoring a quarter-percentage-point cut instead. The Fed projects additional rate cuts: another half a percentage point by the end of 2024 , a full percentage point in 2025 , and a final half-point cut in 2026 , bringing the rate to a range of 2.75%-3.00% . This reflects a long-term outlook on monetary policy, with the federal funds rate foreca...