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.
Donald Trump’s election victory has shifted investor interest to India and Japan due to concerns over potential tariffs on Chinese goods, which could reach up to 60%. Morgan Stanley has reiterated its preference for India and Japan stocks over China, as India is seen as a manufacturing alternative with a domestic-driven economy, offering relative immunity to global risks. Meanwhile, Japanese stocks stand to gain from higher U.S. interest rates, which may weaken the yen and benefit Japan’s exporters. Supply chain shifts away from China also support investment in India, Japan, and Southeast Asia, according to veteran investor Mark Mobius, who noted that India has the labor force to match China’s. Following the election, the MSCI Japan and MSCI India indexes rose over 1.5%, while MSCI China dropped more than 2%. Analysts expect ongoing pressure on Chinese stocks if Beijing’s stimulus efforts fall short, potentially increasing investments in Japan. However, Societe Generale m...