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.
Shares of Guotai Junan Securities Co and Haitong Securities Co surged after the announcement of their merger terms , which will create a state-backed brokerage with US$226 billion (RM969.99 billion) in assets. This new entity is set to compete with Wall Street firms expanding in China. On Thursday, shares of both companies surged more than 100% in Hong Kong and by the 10% daily limit in Shanghai, as they caught up with the broader rally in Chinese and Hong Kong stocks driven by China’s recent stimulus measures . The deal, which was suspended on Sept 6, involves a share swap , where Guotai Junan will issue shares to Haitong’s holders at a 0.62 to 1 ratio , offering a 32% premium in Hong Kong. Guotai Junan also plans to raise 10 billion yuan from its controlling shareholder to support the merger. The combined entity will have 1.6 trillion yuan in assets, surpassing Citic Securities Co as the largest brokerage in China, with operations spanning Hong Kong, Singapore, New Y...