KUALA LUMPUR: Shares on Bursa Malaysia ended in the red, in line with regional markets, on weak market sentiment due to worries over the economic fallout from Covid-19.
At the close, the FTSE Bursa Malaysia (FBM KLCI) fell 17.57 points to 1,239.01 from yesterday’s close of 1,256.58.
After opening 2.15 points easier at 1,254.43 this morning, the benchmark index moved between 1,226.26 and 1,275.23 throughout the day.
Turnover decreased to 3.48 billion shares worth RM2.88 bil from 4.43 billion shares worth RM3.87 bil yesterday.
On the regional front, Singapore’s Straits Times Index decreased 1.14% to 2,426.56, the Jakarta Composite Index declined 2.83% to 4,330.67 and South Korea’s KOSPI Composite Index dropped 4.86% to 1,591.20.
AmInvestment Bank analyst Joshua Ng pointed out that over the last 15 months, the FBM KLCI lost 26% to 1,257 points from 1,691 points, of which a 6% loss occurred in 2019 and a 20% loss in the first quarter of 2020.
He said this compares with only a 14% loss in the MSCI Emerging Markets (EM) Index from 966 points to 827 points during the same period, which translates to an underperformance by the FBM KLCI against the MSCI EM Index of 12 percentage points.
“We see a silver lining in the seemingly unabated fall in the FBM KLCI because assuming the FBM KLCI is to fall by about another 100 points from the current level to 1,150 points, this will bring the FBM KLCI in line with the MSCI EM Index’s 10-year (2010–2019) average price-to-earnings ratio of 13.3 times.
“This will put Malaysia back onto the radar of international EM fund managers, who generally feel less excited about Malaysia due to its high valuations,” he said in a note.
Among heavyweights, Maybank lost 10 sen to RM7.26, Tenaga gained 18 sen to RM11.42, Public Bank fell 88 sen to RM13.02 and IHH was 12 sen higher at RM4.80.
Of the actives, Sapura Energy eased 1.5 sen to 7.5 sen, Borneo Oil was flat at 1.5 sen and Bumi Armada inched down two sen to 12 sen.
Meanwhile, ACE Market debutant, electrical products and accessories distributor ACO Group Bhd, declined 12 sen to 16 sen with 47.23 million shares traded.
At the opening bell, it declined eight sen over its issue price of 28 sen with 6,000 shares traded.
On the index board, the FBM Emas Index decreased 152.54 points to 8,474.24, the FBM 70 erased 226.43 points to 9,919.98 and the FBM Emas Shariah Index gave up 88.77 points to 9,272.28.
The FBMT 100 Index contracted 135.82 points to 8,414.81 and the FBM Ace lowered 192.68 points to 3,429.41.
Sector-wise, the Industrial Products and Services Index down 3.93 points to 98.21, the Plantation Index slashed 99.29 points to 5,590.35 and the Financial Services Index was 313 points weaker at 11,349.48.
Main Market volume decreased to 2.68 billion shares worth RM2.72 bil from 3.55 billion shares worth RM3.70 bil yesterday.
Warrants turnover increased to 323.73 million units worth RM73.58 mil from 315.25 million units worth RM59.81 mil.
Volume on the ACE Market declined to 482.71 million shares worth RM85.55 mil from 560.50 million shares worth RM107.62 mil.
Consumer products and services accounted for 397.27 million shares traded on the Main Market, industrial products and services (415.02 million), construction (192.77 million), technology (313.62 million), SPAC (nil), financial services (119.22 million), property (203.86 million), plantations (66.66 million), REITs (35.84 million), closed/fund (44,500), energy (677.78 million), healthcare (58.95 million), telecommunications and media (51.76 million), transportation and logistics (92.12 million), and utilities (55.98 million). – March 18, 2020, Bernama
