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, the People's Bank of China (PBOC) , reduced the one-year policy loan interest rate from 2.3% to 2% , while simultaneously withdrawing 291 billion yuan (US$41.4 billion) from the banking system through the medium-term lending facility (MLF) . This marks the largest liquidity drainage since December 2021. These moves come as part of a broader stimulus package aimed at reviving China's slowing economy. On the previous day, PBOC Governor Pan Gongsheng announced a 30-basis-point rate cut and revealed plans to inject one trillion yuan in long-term liquidity by reducing the reserve requirement ratio (RRR) by 50 basis points, which lowers the amount of cash banks must keep in reserve. The PBOC is transitioning away from using the MLF as a key policy tool, shifting towards shorter-term instruments like seven-day reverse repurchase notes . This shift is part of a new policy framework designed to influence market borrowing costs more effectively, aligning...