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.
Palm oil prices are expected to stay above RM5,000 through 1Q2025 due to tight supplies from Indonesia and Malaysia and Indonesia’s upcoming B40 biodiesel mandate , according to BMI (Fitch Group). However, additional price increases may be limited by seasonal factors, including reduced demand in the northern hemisphere and the end of Diwali-driven buying in India. La Niña conditions anticipated in 4Q2024 could influence production, with mild rainfall potentially boosting yields without severe flooding. The B40 biodiesel mandate rollout in Indonesia is also seen as a factor that could impact supply-demand dynamics. BMI notes that palm oil demand in food processing remains strong, though household-level substitution to other edible oils could occur due to palm oil's price premium over soybean oil. BMI projects the global palm oil surplus to narrow from 1.8 million tonnes in 2023/2024 to 1.1 million tonnes in 2024/2025, contrasting with USDA’s higher surplus forecasts. Prod...