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.
Malaysian bonds are drawing significant unhedged foreign investments, leading to a strong rally in the ringgit, which is Asia's best-performing currency this year. In August, global funds invested RM8.1 billion in Malaysian government bills and bonds, the largest inflows since July 2023, driven by expectations of ringgit appreciation. Key Highlights: Surge in Unhedged Investments : The increased demand for Malaysian bonds has largely been unhedged, which means investors are not taking protective measures against currency fluctuations. This has amplified the ringgit's 6% gain in August as foreign funds flow into the country. Attractive Returns and Economic Outlook : An unhedged Bloomberg index of Malaysian bonds provided a total return of 9.74% for dollar-based investors this quarter, the highest in emerging Asia, compared to a 1.7% return for a hedged index. Malaysia's improving economic prospects, including stable inflation, adherence to fiscal deficit targets, and polit...