Kuala lumpur: Bursa Malaysia ended its trading session flat on Tuesday as investors maintained a cautious approach in anticipation of domestic policy announcements and due to concerns over a potential US government shutdown, according to an analyst. The FTSE Bursa Malaysia KLCI (FBM KLCI) recorded a slight increase of 0.93 of-a-point, or 0.06 percent, closing at 1,611.88, a marginal rise from Monday's closing figure of 1,610.95. The index opened the day slightly higher at 1,611.82 and fluctuated between 1,608.69 and 1,619.11 during the trading hours.

According to BERNAMA News Agency, the market breadth displayed a near balance, with decliners slightly outpacing gainers at 557 to 549. Unchanged counters amounted to 503, while 1,006 remained untraded and 81 were suspended. The day's turnover decreased to 3.47 billion units valued at RM3.16 billion, compared to the previous day's 3.77 billion units worth RM2.47 billion.

Research firm IPPFA Sdn Bhd director and country economist Mohd Sedek Jantan observed that trading was mixed, with consumer and utilities stocks leading both gainers and laggards, indicating selective rotation rather than broad momentum. He noted that this reflects a market that is highly stock-specific and awaits clearer catalysts for direction. Furthermore, Mohd Sedek highlighted that foreign fund flows showed a positive trend, with international investors being net buyers of Malaysian equities, suggesting that the country's capital market remains an attractive regional investment due to its stable domestic fundamentals and appealing valuations.

Mohd Sedek also mentioned that market sentiment is expected to remain cautious as investors look forward to the upcoming Budget 2026 presentation by Prime Minister Datuk Seri Anwar Ibrahim. The budget is anticipated to include potential flagship investment announcements that could influence market dynamics and sector positioning.

In the international arena, the possibility of a US federal government shutdown increased following a meeting between top Democrats and Republicans with President Donald Trump at the White House on Monday. Reports indicated that a lack of agreement could trigger a shutdown as early as Wednesday.

Among major counters, YTL Corporation increased by seven sen to RM2.78, Sunway rose 11 sen to RM5.65, and Tenaga gained eight sen to RM13.22. Petronas Dagangan and PPB saw gains of 36 sen to RM22.94 and 20 sen to RM10.20, respectively. Other top gainers included Ayer, which jumped 33 sen to RM7.50, PJBumi rose 18 sen to RM2.78, and Aeon Credit Service advanced 18 sen to RM5.53. On the downside, Nestle fell 88 sen to RM96.22, MPI lost 38 sen to RM28.72, and Hume Cement Industries decreased by 16 sen to RM3.49.

On the index board, the FBM Emas Index decreased by 2.55 points to 11,985.89, the FBM 100 Index fell 1.34 points to 11,722.62, while the FBM Emas Shariah Index increased by 6.91 points to 12,016.55. The FBM 70 Index dropped 37.26 points to 16,746.59, and the FBM ACE Index decreased by 18.55 points to 5,171.31.

Sector-wise, the Industrial Products and Services Index slipped 0.29 of a point to 171.46, and the Energy Index declined 1.64 points to 776.62. The Plantation Index rose by 8.01 points to 7,119.58, while the Financial Services Index decreased by 17.15 points to 18,246.73.

The Main Market volume rose to 1.87 billion units worth RM2.83 billion, compared to 1.68 billion units valued at RM2.08 billion on Monday. Warrant turnover narrowed to 1.03 billion units valued at RM155.25 million, down from 1.26 billion units worth RM191.47 million. The ACE Market volume fell to 565.69 million shares valued at RM170.09 million, from 815.25 million shares worth RM195.92 million previously.

Consumer products and services counters accounted for 406.61 million shares traded on the Main Market, with industrial products and services at 319.40 million, construction at 91.47 million, and technology at 202.24 million. Other sectors included financial services with 105.94 million shares, property with 237.64 million, plantation with 30.86 million, REITs with 20.74 million, and energy with 158.90 million, among others.