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.
The rapid expansion of the $1.7 trillion private credit industry , which more than doubled in size since 2019, is now encountering significant headwinds. As the Federal Reserve cuts interest rates, the appeal of floating-rate debt is diminishing, posing a major challenge to this fast-growing sector. Lower benchmark rates make fixed-income investments more attractive to investors than variable-rate private credit. This shift is expected to intensify as the Fed projects further easing later this year, potentially slowing private credit’s growth trajectory. Adding to the industry’s woes are increased concerns from regulators , who worry about the spillover impact of any crisis in private credit on banks, which provide loans to private credit managers. Moreover, institutional capital allocations to private credit are stagnating, while falling oil prices could hamper Middle Eastern investments . New US regulations set to take effect in 2026 may also deter insurers from investing in th...