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.
Kenanga Research’s analysis of Malaysia’s new “Appreciation Package” highlights both short-term economic benefits and long-term fiscal challenges: Key Measures: RM100 cash aid (Sumbangan Asas Rahmah – SARA Untuk Semua) for all eligible Malaysians. Reduction in RON95 petrol prices to RM1.99/litre (from RM2.05) for eligible groups. Package cost estimated at RM2.8 billion (~0.14% of GDP) . Economic Impact: ✅ Boost to private consumption in 2H25, supporting GDP growth at 4.3% (vs. 5.1% in 2024). ✅ Expected to offset trade risks from global tariffs and support domestic demand. ✅ Inflation forecast revised down to 1.7% (from 2.0%) due to fuel price cuts. Fiscal Trade-offs: ⚠️ Fiscal deficit for 2025 projected at 4.1% of GDP , exceeding the initial 3.8% target. ⚠️ Government debt expected to hit RM1.33 trillion (65.9% of GDP) , potentially breaching the statutory debt ceiling (65%). Fuel Subsidy Reform: T...