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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.

US Loan Backs Petrochemical Plant in Malaysia Despite Biden's Climate Pledge

The US Export-Import Bank (Ex-Im Bank) has authorized a US$690 million loan to support the construction of a petrochemical plant in Malaysia , despite objections from climate activists. Critics argue that the project contradicts the Biden-Harris administration's promise to halt public financing for overseas fossil fuel projects. In 2021, President Joe Biden issued an executive order to curb such financing, and the US signed an international pledge with 33 nations to cease supporting fossil fuel ventures. Nevertheless, the Ex-Im Bank, an independent agency, has continued to back such projects, authorizing US$2.2 billion in new oil, gas, and coal-related projects abroad since May 2023 . Environmental groups have criticized the Ex-Im Bank’s focus on fossil fuel investments, arguing in a letter to US Treasury Secretary Janet Yellen and the bank’s chair Reta Jo Lewis that this undermines the US’s climate credibility. Despite this, the Pengerang Energy Complex in Malaysia, which ...

US Office Loan Pain Just Beginning, Say Analysts

  Hopes that falling borrowing costs would mitigate the US office market downturn have been dashed as financial institutions brace for more commercial real estate (CRE) loan defaults. Key Highlights: Financial Institution Actions: Deutsche Bank AG: Increased reserves for deteriorating US CRE loans. Blackstone Inc.: Its mortgage trust slashed dividends after reporting a quarterly loss of US$61 million, down from a US$101.7 million profit a year earlier. New York Community Bancorp: Shares plummeted following a US$390 million provision for loan losses, more than double the average expected by analysts. CRE Market Distress: Over US$94 billion of US commercial real estate is currently distressed, with an additional US$201 billion at risk of becoming distressed, according to MSCI Real Assets. A looming US$1.5 trillion wall of loan maturities over the next two years is expected to exacerbate the situation. Market Outlook: John Murray and François Trausch of Pacific Investment Managemen...