Tynkr Lab wrote a post · Nov 21, 2024 20:20

FBM KLCI Suffers Third Straight Loss Amid Regional Weakness

Get more detailed information and trading ideas on our Official Telegram Channel

FBM KLCI closes at 1,588.68, weighed down by persistent selling pressure in blue-chip stocks

Bursa Malaysia closed lower, with $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ dropping 0.59% to 1,588.68, marking its third straight day of losses. Selling pressure in heavyweight counters, particularly in $TENAGA (5347.MY)$, $YTL (4677.MY)$, and $PETDAG (5681.MY)$, weighed heavily on the index. Declines across most sectors reflect ongoing weak sentiment, aligning with a broader regional market downtrend.

Heavyweights Drag the Index Lower

Major contributors to the decline included $TENAGA (5347.MY)$, which fell 32 sen to RM13.80, and $PETDAG (5681.MY)$, which dropped 42 sen to RM17.58. $YTL (4677.MY)$ also experienced significant losses, closing at RM1.83, down 6.63%. Collectively, these counters significantly impacted $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$, reflecting subdued investor confidence in blue-chip stocks.

Mixed Broader Market Sentiment

The broader market was equally weak, with 675 decliners outpacing 371 gainers, while 461 counters remained unchanged. Trading activity saw a total volume of 3.44 billion shares worth RM2.50 billion, up from the previous day but still indicating cautious investor participation. Active counters such as $ZENTECH (0094.MY)$ and $MYEG (0138.MY)$ led in trading volume but showed minimal price movement.

Utilities and financial stocks underperform, reflecting broad-based selling across key sectors

Sectoral Performance Highlights Weakness in Utilities and Financials

Sectoral analysis revealed widespread declines, particularly in $Bursa Utilities (0065I.MY)$ and $Bursa Finance Services (0010I.MY)$. $Bursa Energy (0061I.MY)$ Index fell 0.46%, while $Bursa Finance Services (0010I.MY)$ Index shed 0.43%. These declines underscore a lack of catalysts to lift sentiment, compounded by weak performances in heavyweights within these sectors. Meanwhile, $Bursa Industrial Products & Services (0002I.MY)$ Index managed marginal gains of 0.02%, driven by $PCHEM (5183.MY)$.

Regional Markets Add to Selling Pressure

Regional markets mirrored the local downtrend, with most Asian indices posting losses. Japan’s $Nikkei 225 (.N225.JP)$ fell 0.8%, while Hong Kong’s $Hang Seng Index (800000.HK)$ and China’s $SSE Composite Index (000001.SH)$ declined by 0.5% and 0.2%, respectively. Negative sentiment from the global economic environment and geopolitical uncertainties added to the bearish tone across the region.

Ringgit Performance and External Influences

The Malaysian Ringgit continued to weaken, trading at 4.4605 against the US Dollar $USD/MYR (USDMYR.FX)$ and 3.3244 against the Singapore Dollar $SGD/MYR (SGDMYR.FX)$. The currency’s depreciation highlights external pressures, including higher interest rates in the US and global economic uncertainty. This has added another layer of concern for investors navigating the local market.

Investors remain cautious as the market awaits fresh catalysts amid ongoing selling pressure

Outlook: Continued Downside Risks Persist

Bursa Malaysia’s continued decline reflects persistent selling pressure amid weak sentiment locally and regionally. With a lack of strong catalysts in sight, $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ may remain under pressure in the short term. Investors are expected to adopt a cautious approach, focusing on key economic indicators and developments in global markets to gauge further market direction.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more

Translate

Report

95 Views

Comment

Tynkr Lab

Chart the unknown, rule the game! Trader | Analyst | Hustler

866

Followers

Following

1214

Visitors