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: Bostic's Revised View on Rate Cuts: Federal Reserve Bank of Atlanta President Raphael Bostic now forecasts only one rate cut this year, down from two, due to the persistent inflationary pressures caused by ongoing tariff hikes. Inflation Outlook: Bostic believes inflation will be bumpy and will not reach the Fed's 2% target until early 2027 —a delay from previous expectations. He also linked the impact of tariffs as a contributing factor to the slower progress toward this target. GDP and Employment Forecasts: The Fed projects U.S. GDP to grow by 1.8% this year, slightly down from a previous estimate of 2.1% . However, Bostic expects the unemployment rate to remain strong at 4.2% to 4.3% by year-end. Impact of Tariffs: Bostic expressed concerns that the increased tariffs could drive inflation further, posing risks to employment if consumer sentimen...