FBM KLCI Extends Decline Amid Rising Global Trade Tensions
By Siti Noor Afera Abu
KUALA LUMPUR, March 12 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) continued its decline, breaching the key support level of 1,490-1,500, driven by heightened investor concerns over the potential repercussions of an escalating global trade dispute.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said key regional indices were mostly lower as investors navigated uncertainties stemming from potential economic slowdowns.
At 5 pm, the FBM KLCI dropped 35.32 points, or 2.32 per cent, to 1,484.83 from Tuesday’s close of 1,520.15. The index recorded close to 10 per cent loss on a year-to-date basis.
The market bellwether opened 15.44 points lower at 1,504.71, and fluctuated between 1,478.84 and 1,505.33 throughout the day.
On the broader market, decliners thumped advancers 659 to 297, while 469 counters were unchanged, 964 untraded, and seven suspended.
Turnover fell to 3.09 billion units worth RM3.37 billion from 3.71 billion units worth RM3.29 billion on Tuesday.
Thong believes that the sharp decline today is a knee-jerk reaction to US President Donald Trump’s policies, which have created significant uncertainty for investors.
“The FBM KLCI is currently in oversold position, hence, we expect bargain hunting may emerge anytime soon. The index is expected to trend within the range of 1,480-1,510 for the remainder of the week,” he told Bernama.
Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan noted that the financial sector, typically considered defensive due to its stable earnings and essential role in the economy, led the sell-off in today’s session.
He said the slide was driven by mounting concerns over the global economic slowdown, which could weaken loan growth and increase downside risks for the sector.
“Additionally, heightened uncertainty ahead of the upcoming Federal Open Market Committee meeting and US inflation data release has further intensified risk aversion, prompting investors to reduce exposure to financial stocks,” he explained.
While today’s market reaction reflects genuine macroeconomic concerns, Mohd Sedek said a degree of overreaction may be present.
The heightened anticipation surrounding the US inflation data release later today has led to significant market repositioning, but it remains crucial to assess whether this reaction aligns with underlying economic fundamentals.
“Monitoring both the data and subsequent market movements will be essential in gauging the sustainability of current sentiment and potential recovery opportunities,” he added.
Heavyweights Maybank fell six sen to RM10.18, Public Bank slipped eight sen to RM4.33, CIMB dipped 26 sen to RM7.0, and Hong Leong shed 10 sen to RM20.04. MR DIY added three sen to RM1.33 and 99 Speed Mart rose one sen to RM1.98.
As for the actives, Sapura Energy gained half-a-sen to 4.0 sen, MYEG increased one sen to 90.5 sen, Nationgate rose 2.0 sen to RM1.17, Ta Win and Velesto were flat at 3.0 sen and 15.5 sen respectively, while NexG eased 1.5 sen to 25.5 sen.
On the index board, the FBM Emas Index slipped 216.67 points to 11,051.22, the FBMT 100 Index slid 222.60 points to 10,836.27, the FBM Emas Shariah Index dropped 139.52 points to 10,734.49, the FBM ACE Index shrank 41.16 points to 4,398.97, and the FBM 70 Index slumped 181.06 points to 15,664.33.
Sector-wise, the Financial Services Index tumbled 568.51 points to 18,200.78, the Industrial Products and Services Index eased 1.95 points to 148.95, the Energy Index lost 10.79 points to 684.32, and the Plantation Index was 47.19 points lower at 7,294.04.
The Main Market volume narrowed to 1.83 billion units worth RM3.16 billion from 2.03 billion units worth RM3.02 billion on Tuesday.
Warrants turnover decreased to 9.58 million units worth RM108.03 million against 1.28 billion units worth RM144.08 million previously.
The ACE Market volume slid to 304.75 million units valued at RM98.58 million versus 397.96 million units valued at RM129.01 million yesterday.
Consumer products and services counters accounted for 266.93 million shares traded on the Main Market, industrial products and services (297.0 million), construction (188.69 million), technology (200.94 million), SPAC (nil), financial services (165.47 million), property (163.65 million), plantation (33.16 million), REITs (27.29 million), closed/fund (1,000), energy (326.22 million), healthcare (68.58 million), telecommunications and media (48.87 million), transportation and logistics (39.06 million), utilities (46.87 million), and business trusts (437,500).
-- BERNAMA