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.
S&P Global Ratings has forecast an increase in sovereign foreign-currency debt defaults over the next decade, driven by rising debt levels and increased borrowing costs on foreign currency obligations. The ratings agency noted that many governments face escalating costs associated with servicing foreign debts, with some spending nearly 20% of general government revenues on interest payments before defaulting. Factors contributing to this pressure include rising inflation , currency devaluation , and shocks to trade terms , all exacerbating the burden of hard currency debt. Additionally, sovereigns with a significant portion of government debt in foreign currency are more vulnerable to these pressures, according to S&P. Giulia Filocca , an S&P Global credit analyst, highlighted in a report that no single measure consistently predicts sovereign defaults, noting that weak institutional, fiscal, and debt composition factors have driven most defaults from 2000 to 2023...