KUALA LUMPUR: Bursa Malaysia ended in the red on Black Monday due to persistent selling pressure, in line with bearish regional markets, with the benchmark index reaching its lowest in a decade.
At the close, the FTSE Bursa Malaysia (FBM KLCI) erased 64.12 points or 4.76% to 1,280.63.
After opening 25.38 points lower at 1,319.37 this morning, the benchmark index moved between 1,278.48 and 1,319.37 throughout the day.
Turnover decreased to 4.47 billion shares worth RM3.68 bil from 5.67 billion shares worth RM4.90 bil recorded last Friday.
A dealer said selling pressure intensified in the local market amid uncertainties due to COVID-19 that have triggered travel bans and a recession scare, coupled with lower oil prices.
He said the decline in FBM KLCI was also seen on the regional front, with Singapore’s Straits Times Index going down 4.95% to 2,503.60 while Hong Kong’s Hang Seng Index reduced 4.03% to 23,063.57 and the Jakarta Composite Index declined 4.48% to 4,687.86.
Meanwhile, OANDA senior market analyst for Asia-Pacific Jeffrey Halley said the US Federal Reserve’s aggressive move to cut interest rates, rather than calming markets, appeared to have highlighted just how serious the international situation has become.
”The actions of the Fed, in particular cutting the fed funds rate by 100 basis points, will likely spark a wave of aggressive rate cuts by Asia’s central banks this week.
“Asian markets are set for a tough start to the week, with only the anticipation of further easing by regional central banks likely to offer any support,” he said in a note.
A check on Bursa Malaysia’s website also showed that the local exchange had suspended the proprietary day trading (PDT) and intraday short selling (IDSS) of 23 companies today, including UMW Holdings Bhd, DRB-Hicom Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Sunsuria Bhd and MyEG Services Bhd.
The suspension came after these stocks dropped more than 15% from the reference price.
The stock exchange said PDT and IDSS activities for these counters would only be activated at 8.30 am tomorrow.
Among the heavyweights on Bursa Malaysia, Maybank fell 59 sen to RM7.29, Tenaga reduced 52 sen to RM11.30, Public Bank dropped 80 sen to RM14.50 and IHH was 38 sen lower at RM5.00.
Of the actives, Bumi Armada eased 2.5 sen to 13.5 sen, Sapura Energy inched down one sen to 9.5 sen and Velesto eased 3.5 sen to 12.5 sen.
On the index board, the FBM Emas Index decreased 537.05 points to 8,789.41, the FBM 70 erased 906.51 points to 10,103.72 and the FBM Emas Shariah Index gave up 474.66 points to 9,510.33.
The FBMT 100 Index contracted 510.45 points to 8,708.51 and the FBM Ace lowered 510.22 points to 3,781.77.
Sector-wise, the Industrial Products and Services Index went down 6.99 points to 103.68, the Plantation Index gave up 11.14 points to 5,836.37 and the Financial Services Index was 927.05 points weaker at 11,895.29.
Main Market volume deteriorated to 3.35 billion shares worth RM3.50 bil from 4.19 billion shares worth RM4.67 bil at Friday’s close.
Warrants turnover decreased to 3.71 billion units worth RM56.82 mil from 528.18 million units worth RM69.99 mil.
Volume on the ACE Market abated to 750.50 million shares worth RM124.79 mil from 949.21 million shares worth RM155.14 mil.
Consumer products and services accounted for 461.83 million shares traded on the Main Market, industrial products and services (543.45 million), construction (284.83 million), technology (307.59 million), SPAC (nil), financial services (175.05 million), property (254.71 million), plantations (75.04 million), REITs (40.93 million), closed/fund (64,500), energy (866.64 million), healthcare (92.10 million), telecommunications and media (64.98 million), transportation and logistics (111.44 million), and utilities (72.39 million). – March 16, 2020, Bernama
