KLCI Cracks as Global Markets Face Recession

The FBM KLCI started Monday on a lighter footing as it snapped four-days of gains following the IMF's declaration that the corona virus pandemic had triggered a global recession.

Trading value on the stock exchange tapered somewhat to RM918.96mil on volume of 1.67 billion shares. There were 523 declining stocks to 230 gainers and 237 unchanged.

Across global markets, cash was taken out of equities as investors settled into the reality of an economic slump over the coming months.

Japan's Nikkei fell 2.85%, China's composite index sank 1.6% and South Korea's Kospi slid 1%.Hong Leong Bank led the market lower with a 62 sen decline to RM13.58. Public Bank shed 10 sen to RM15.80 while Maybank dipped five sen to RM7.32 and CIMB dropped eight sen to RM3.49.

Bursa Malaysia Seen to Continue Upward Momentum Next Week

Bursa Malaysia is expected to continue its upward momentum, erasing the losses recorded in earlier weeks.

An analyst said the FTSE Bursa Malaysia KLCI (FBM KLCI) had managed to breach the 1,350 immediate resistance level, showing that the key index could extend its gains further.Over the week, the gains on Bursa Malaysia also tracked other ASEAN markets as the FTSE Asean 40 records a strong performance, increasing more than four per cent to close at 7,581.14 points.

As for Bursa Malaysia’s performance, finance counters recorded an astounding gains, erasing last week’s losses to close 483.43 points higher, backed by renewed interest in blue-chip finance stocks such as Maybank and Public Bank.On the scoreboard, the FBM Emas Index rose 343.52 points to 9,186.30, the FBMT 100 Index increased 332.93 points to 9,122.23 and the FBM Emas Shariah Index appreciated 344.24 points to 10,008.38.The FBM 70 expanded 647.57 points to 10,535.84 and the FBM ACE Index added 247.83 points to 3,766.95.

FBM KLCI was up 3.59 points or 0.27% to 1,328.09

 Local fund buying continued to underpin the FBM KLCI’s firmer close on Thursday, though off the intra-day high amid a firmer broader market.

Turnover was robust with 3.53 billion shares valued at RM2.27bil. The broader market was firmer as advancers beat decliners 540 to 295 while 334 counters unchanged.

The rally on Bursa this week has been due to sustained local fund buying amid some profit taking by retail investors while foreign institutions had continued to sell down Malaysian equities due to the Covid-19. Among the biggest buyers of hammered down stocks including banks such as Public Bank was the Employees Provident Fund.

Bursa Malaysia and Asian markets staged a rally on Tuesday

Investors took heart from the support measures unveiled by the US Federal Reserve to combat the Covid-19 fallout.

The FBM KLCI was up 39.48 points or 3.13% to 1,299.36. Turnover was 3.17 billion shares valued at RM2.18bil. Advancers beat decliners or nearly five to one with 756 gainers, 155 losers and 246 counters unchanged.

Reuters reported China stocks tracked broader Asia higher also on the Fed’s move to ease a global cash crunch, although gains were capped due to a sharp rise in new coronavirus cases in China. The Shanghai Composite index was up 2.3% at 2,722.44.European shares attempted another rebound after slumping in the previous session, as a fresh round of monetary and fiscal stimulus offered some relief even as the coronavirus pandemic spreads rapidly across the globe, the wire reported.

At Bursa, the regulators decision to halt short-selling activities helped steady the market which was already battered by the Covid-19 and oil price collapse.

Banks led the KLCI higher with Public Bank, Hong Leong Bank and Maybank underpinning the index.

FBM KLCI slid 35.21 points to 1,268.07 Today

Bursa Malaysia could not sustain the rally from the previous session and tracked global equities lower amid worsening sentiment over the impact of the Covid-19 pandemic.

Trading volume was 1.63 billion shares valued at RM1.09bil. Market breadth was negative with 732 decliners, 117 gainers and 183 counters unchanged. Bursa Malaysia Securities suspended the short selling activities for CMSB, Serba Dinamik, MI and Frontken on Monday morning and for the rest of the day. It said the last done price of the shares dropped more than 15% from the reference price. The short selling will only be activated on Tuesday at 08:30am.

CMSB was down 18 sen to 94 sen, Serba Dinamik 14 sen to RM1.16, MI 24 sen to RM1.43 and Frontken 12 sen to RM1.33. The FBM KLCI slid 35.21 points to 1,268.07. Trading volume was 1.63 billion shares valued at RM1.09bil. Market breadth was negative with 732 decliners, 117 gainers and 183 counters unchanged.

FBM KLCI fell 1.87% to 1,215.8 Today - 19/03/2020

The Bursa Malaysia Finance Index fell 2.56% or 291.05 points to an 11-year low of 11,058.43.

The benchmark index has shed some 23.5% from 1,588.76 on Dec 31, 2019.The decline in banking stocks was led by Affin Bank Bhd, which fell as much as 10.42% to RM1.29, followed by RHB Bank Bhd, which declined as much as 7.03% to RM4.23, Alliance Bank Bhd, down as much as 4.97% to RM1.53, and Hong Leong Financial Group Bhd, which shrank as much as 4.92% to RM11.60.

 CIMB Group Holdings Bhd dipped as much as 3.28% to RM3.24, AMMB Holdings Bhd was down as much as 2.62% to RM2.97, and Public Bank Bhd fell as much as 2.3% to RM12.72. Hong Leong Bank Bhd was down as much as 1.77% to RM12.20, Malayan Banking Bhd fell as much as 1.52% to RM7.15, while BIMB Holdings Bhd shed as much as 0.68% to RM2.90. 

IS NOW THE TIME TO BUY?

Every market correction creates opportunity, and financial planners say this one will be no different.

If you have money that you’ve been holding on the sidelines while waiting for an opportunity to get into the market, this is probably that opportunity.The markets historically have always returned to normal and have paid handsomely to those who remained true to their plan.Stocks moved higher Tuesday as the Trump administration announced a stimulus package. Small investors have been told to sit tight, not to sell, stay the course, don’t panic. But now that we’re officially in a bear market thanks to coronavirus,

Dayang Wiped Out After Gaining 200% in 6 Months

In 22 days, markets wiped out some good fundamental stocks that gained 60% to 200% in the past 6 months to one year period. Fundamental is important in picking a stock, but it is not the ultimate solution as what the most people perceive. Cut loss still play an important role in buying a stock.

Market Movements are Biased Towards Near-term Earnings Expectations

Markets are functioning well. The trading stops are working as designed. After nearly a 30% drop, investors will begin to consider buying. But, with a global recession at hand, the fundamentals on which value decisions are based will deteriorate. It’s a guess as to how far.

So what’s the right price to pay for something that is facing deteriorating sales and earnings?  The answer is at a price low enough to cushion against worst case outcomes.

As an investor, pick your companies carefully as you re-enter the market. Don’t look to “call a bottom” for the market. Instead dispassionately research the prospects of a company in the current range of macro- economic outcomes. Determine your discipline as to how much uncertainty (risk) you are willing to tolerate in your forecast.

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Dollar, Bond Yields Tumble; U.S. Futures Slide: Markets Wrap

Volatility continued to reign in markets Wednesday, with sovereign bond yields tumbling anew after yesterday’s surge, the dollar sliding and U.S. stock futures dropping.

Contracts on the S&P 500 Index fell more than 2% after the U.S. administration failed to offer details on what President Donald Trump said would be “major” measures to combat the economic impact of the coronavirus. European futures rose after the near 5% rally on Wall Street Tuesday. Asian equities fell, while the yen surged and crude oil held most of Tuesday’s rebound.

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KLSE Market News Today

The ringgit extended yesterday's uptrend to open higher against the US dollar Tuesday, ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting today, with the market expecting a 25 basis point cut in interest rates today.

At 9.01am, the local note stood at 4.1990/2030 against the greenback from 4.2010/2040 recorded at 6pm on Monday.

Chocolate maker Guan Chong Bhd’s share price jumped 15 sen or 5.7% to an intraday high of RM2.78 today on news that its Singaporean subsidiary had concluded its acquisition of German chocolate maker Schokinag Holding GmbH for RM137.84 million at the end of January.

In a Bursa Malaysia filing yesterday, Guan Chong said its unit GCB Pte Ltd had completed the purchase of Schokinag on Jan 30.