Bursa Malaysia Plummets Amid Regional Sell-Off
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In a dramatic turn of events, Bursa Malaysia saw a steep decline today, driven by a broad sell-off across regional markets. The fear of a potential US recession sent shockwaves through global markets, with Japan’s $Nikkei 225 (.N225.JP)$ Index plummeting over 12%, triggering a domino effect that hit Malaysian stocks hard.
Market Carnage Unfolds
Market Carnage Unfolds
At the closing bell, the $FTSE Bursa Malaysia KLCI Index (.KLSE.GI)$ had tumbled 74.57 points, or 4.62%, to 1,536.48 from Friday’s close of 1,611.05. The index opened at its highest level of 1,593.36 before plunging to a midday low of 1,532.24. It was a sea of red across the board, with decliners overwhelmingly outnumbering gainers by 1,658 to 83.
Turnover soared to an astounding 9.26 billion units valued at RM7.97 billion, marking the highest activity since March 2021. The surge in trading volume underscored the panic and sell-off as investors scrambled to offload riskier assets.
Heavyweights Take a Beating
The tech sector, already under pressure from global supply chain issues, took the hardest hit. Major heavyweights were not spared:
• $MAYBANK (1155.BMS)$ dropped 34 sen to RM9.90
• $PBBANK (1295.BMS)$ fell 15 sen to RM4.13
• $TENAGA (5347.BMS)$sank 80 sen to RM13.16
• $CIMB (1023.BMS)$ dropped 39 sen to RM7.01
• $IHH (5225.BMS)$ slipped 18 sen to RM6.07
Among the actives, $MYEG (0138.BMS)$ lost 14.5 sen to 82.5 sen, $VELESTO (5243.BMS)$ shed 2 sen to 19.5 sen, $WCT (9679.BMS)$ dipped 14 sen to 98 sen, and $TOPGLOV (7113.BMS)$ declined 9.5 sen to 88.5 sen.
Sector Wipeout
Every sector felt the pressure, with key indices plunging:
• $FTSE Bursa Malaysia EMAS Index (.FBMEMAS.GI)$: Tumbled 697.60 points to 11,605.90
• $FTSE Bursa Malaysia Top 100 Index (.FBM100.GI)$: Fell 647.59 points to 11,272.36
• $FTSE Bursa Malaysia EMAS Shariah Index (.FBMS.GI)$: Shrunk 779.28 points to 11,668.87
• $FTSE Bursa Malaysia ACE Index (.FBMMES.GI)$: Dipped 515.33 points to 4,955.08
• $FTSE Bursa Malaysia Mid 70 Index (.FBM70.GI)$: Plunged 1,325.91 points to 16,576.89
Turnover soared to an astounding 9.26 billion units valued at RM7.97 billion, marking the highest activity since March 2021. The surge in trading volume underscored the panic and sell-off as investors scrambled to offload riskier assets.
Heavyweights Take a Beating
The tech sector, already under pressure from global supply chain issues, took the hardest hit. Major heavyweights were not spared:
• $MAYBANK (1155.BMS)$ dropped 34 sen to RM9.90
• $PBBANK (1295.BMS)$ fell 15 sen to RM4.13
• $TENAGA (5347.BMS)$sank 80 sen to RM13.16
• $CIMB (1023.BMS)$ dropped 39 sen to RM7.01
• $IHH (5225.BMS)$ slipped 18 sen to RM6.07
Among the actives, $MYEG (0138.BMS)$ lost 14.5 sen to 82.5 sen, $VELESTO (5243.BMS)$ shed 2 sen to 19.5 sen, $WCT (9679.BMS)$ dipped 14 sen to 98 sen, and $TOPGLOV (7113.BMS)$ declined 9.5 sen to 88.5 sen.
Sector Wipeout
Every sector felt the pressure, with key indices plunging:
• $FTSE Bursa Malaysia EMAS Index (.FBMEMAS.GI)$: Tumbled 697.60 points to 11,605.90
• $FTSE Bursa Malaysia Top 100 Index (.FBM100.GI)$: Fell 647.59 points to 11,272.36
• $FTSE Bursa Malaysia EMAS Shariah Index (.FBMS.GI)$: Shrunk 779.28 points to 11,668.87
• $FTSE Bursa Malaysia ACE Index (.FBMMES.GI)$: Dipped 515.33 points to 4,955.08
• $FTSE Bursa Malaysia Mid 70 Index (.FBM70.GI)$: Plunged 1,325.91 points to 16,576.89
Sector-wise, the $Bursa Finance Services (0010I.BMS)$ Index declined 684.84 points, the $Bursa Energy (0061I.BMS)$ shaved off 76.44 points, the $Bursa Plantation (0025I.BMS)$ Index was down 254.97 points, the $Bursa Technology (0005I.BMS)$ Index shed 6.50 points, and the $Bursa Industrial Products & Services (0002I.BMS)$ Index eased 14.37 points.
Market Reaction and Analysis
Despite the bloodbath, some see this as a prime opportunity for strategic investments. The sharp pullback has set the stage for a potential “Buy-on-Weakness” approach, especially as government-linked investment companies have reduced their foreign equity holdings. With US economic data showing slower job growth and rising unemployment rates, the market is poised for a cautious recovery. Support for the FBM KLCI is expected around the 1,530 and 1,500 levels.
Looking Ahead
Investors will be keenly watching the US ISM Non-Manufacturing PMI data and other economic indicators for further clues on the global economic trajectory. While today’s market action was brutal, savvy investors will be looking for bargain hunting opportunities in fundamentally strong stocks that have been beaten down.
Market Reaction and Analysis
Despite the bloodbath, some see this as a prime opportunity for strategic investments. The sharp pullback has set the stage for a potential “Buy-on-Weakness” approach, especially as government-linked investment companies have reduced their foreign equity holdings. With US economic data showing slower job growth and rising unemployment rates, the market is poised for a cautious recovery. Support for the FBM KLCI is expected around the 1,530 and 1,500 levels.
Looking Ahead
Investors will be keenly watching the US ISM Non-Manufacturing PMI data and other economic indicators for further clues on the global economic trajectory. While today’s market action was brutal, savvy investors will be looking for bargain hunting opportunities in fundamentally strong stocks that have been beaten down.
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