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.
Key Takeaways: Rate Adjustments & AI Outlook: The Federal Reserve’s projected interest rate adjustments are likely to have a limited effect on equity markets in the short term. While some may fear that higher rates will constrain growth, the real driver of returns, particularly in the U.S., will be advancements in Artificial Intelligence (AI), which continues to be viewed as a powerful growth engine. Tariffs and Economic Resilience: The biggest risk to the market is not a recession, but rather long-term decisions regarding infrastructure and fiscal policies that could reduce structural growth in the U.S. Even with rising tariffs, the economy has shown resilience, and the focus should be on how these decisions impact long-term growth rates, rather than short-term market dips. China vs. U.S. in AI Development: Both the U.S. and China stand to benefit from the AI revolution, but the U.S. is seen as having a more favorable macro environment, making it the strong...