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 Takeaway Singapore’s ballooning cash levels are driving strong demand for local bonds, sending returns to the top tier in Asia. With ample liquidity, foreign inflows, and MAS’s currency policy stance, Singapore bonds are increasingly viewed as safe-haven alternatives to U.S. assets. Market Snapshot Singapore Bonds YTD Return : +16.6% (2nd in Asia after Thailand) 10Y Yield : ~1.85% (seen stable through year-end – OCBC) Loan-to-Deposit Ratio : 65.9% (lowest since 2021) 2030 Bond Auction : Bid-to-cover 2.66x (highest in a year) SGD/USD Forecast : 1.27 by mid-2026 (vs 1.2883 currently) Drivers of Excess Liquidity Interbank Rates : SOR fell to lowest since Jun 2022 (–70bps in Aug). Foreign Inflows : Attracted by AAA rating and Trump’s U.S. fiscal uncertainty. MAS Policy : FX appreciation stance continues to pull capital into SGD assets. Lower Loan Growth : Property cooling measures slowing lending → lower loan-to-deposit ratio. Net Bill Supply Shrinks : MAS issued just S$20.9B YTD vs ~S...