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.
China's central bank is expected to implement its most significant interest rate cuts in a decade next year as policymakers work to counter economic headwinds, including weak domestic demand, deflation, and the potential impact of US tariffs under President-elect Donald Trump. Key Projections: Rate Cuts Expected : Goldman Sachs and Morgan Stanley predict a 40-basis-point reduction in the People's Bank of China (PBOC) policy rate in 2025, lowering the seven-day reverse repo rate to 1.1%. Economists’ Views : Some analysts, like Mizuho Securities, forecast even deeper cuts of up to 60 basis points in lending and policy rates. Economic Context: Deflation Concerns : China faces its longest deflation streak this century, keeping real borrowing costs high despite rate cuts. Trade Pressures : A potential resurgence of US-China trade tensions could further strain exporters, compounding economic difficulties. Growth Challenges : The GDP deflator, a broad price measure, remains below zero...