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.
Malaysia’s stock market, once driven by optimism around artificial intelligence (AI), is now facing a sharp reversal. The rally that pushed the FTSE Bursa Malaysia KLCI higher last year has lost steam as global trade risks and U.S. policy shifts weigh heavily on investor sentiment. US Tariffs and AI Export Curbs Dampen Outlook The decline comes amid rising concerns over the U.S. government's plans to restrict AI chip exports , a move that could jeopardize Malaysia’s fast-growing data centre industry. Adding to the pressure, U.S. President Donald Trump has threatened to impose a 25% tariff on Malaysian goods , further darkening the market’s prospects. As a result, Malaysia's benchmark KLCI index has fallen 7% year-to-date , ranking it as one of Southeast Asia’s worst performers, just ahead of Thailand. Analyst Downgrades and Outflows Major research houses have scaled back their forecasts: UOB Kay Hian has cut its KLCI year-end target to 1,620 , down from an ...