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.
Investment firm DoubleLine has raised concerns over rising US government debt levels, warning that higher debt payments and the possibility of a recession in the next decade could push US debt beyond current forecasts, negatively impacting economic growth. Key Points: Debt and Deficit Concerns: Historical Context: The US government has historically expanded deficit spending during economic downturns. However, since 2016, deficits have increased despite continued economic expansion and low unemployment. Risk of Deeper Deficits: Ryan Kimmel, a macro asset allocation analyst at DoubleLine, highlighted the risk of deeper debt-funded deficits in the event of an economic contraction. Vicious Debt Cycle: Rising Interest Rates: The demand for government bonds may only be enticed through higher interest rates, leading to increased interest expenses. Impact on Growth: Higher interest expenses necessitate higher taxes, which can hinder economic growth and lead to further economic contraction,...