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.
Leveraged loan activity is expected to pick up after recent market stabilization, but investors are approaching junk-rated loans with caution, especially in light of a potential economic slowdown. Key Highlights: Market Pullback: Last week saw a significant reduction in leveraged loan deals, with only $3.3 billion worth of loans sold, compared to the $10 billion weekly average this year. This slowdown was triggered by disappointing jobs data released on August 1 and 2, which raised concerns about lower-rated debt and prompted forecasts for more aggressive interest rate cuts. JetBlue Airways Loan Deal: JetBlue Airways completed a five-year term loan deal, originally seeking $1.25 billion but downsizing to $750 million while increasing its bond offering from $1.5 billion to $2 billion. This adjustment reflects the cautious approach of borrowers in the current market environment. Investor Sentiment: Investors are wary of the potential for reduced earnings from leveraged loans if ...