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.
Bank Negara Malaysia (BNM) is refining a proposal from the Reserve Bank of India (RBI) to establish a Local Currency Settlement Framework (LCSF) aimed at increasing the use of the ringgit and Indian rupee in bilateral trade, according to the Ministry of Investment, Trade, and Industry (Miti). Key Benefits of LCSF Reduced reliance on the US dollar in trade transactions. Lower transaction costs , leading to competitive pricing of goods. Enhanced bilateral trade opportunities for entrepreneurs and investors in Malaysia and India. Progress and Impact The share of bilateral trade settled in ringgit and rupees rose from 4.4% in 2022 to 4.8% in 2023 , per BNM data. India International Bank Malaysia became the first local bank to adopt the mechanism, using a Special Rupee Vostro Account with Union Bank of India. Implementation and Encouragement Malaysian businesses can settle trade in rupees , while Indian firms are encouraged to use the ringgit via BNM-appointed offices in India. This a...