KLCI dives 3.02% as markets slump amid global rout

KUALA LUMPUR (March 9): The FBM KLCI dived 3.02% at the midday break today as regional markets slumped amid a global equity rout, precipitated by fears of global economic downturn as the coronavirus spread across more countries while crude oil prices plunged more than 30%.

Even the prospect of a new Cabinet line-up to be announced later today failed to lift sentiments at the local bourse as market breadth was firmly negative.

At 12.35pm, the FBM KLCI tumbled 44.75 points to 1,438.35.

Losers thumped gainers by 880 to 23, while 384 counters traded unchanged. Volume was 3.91 billion shares valued at RM1.82 billion.

The top losers included Carlsberg Brewery Malaysia Bhd, Kuala Lumpur Kepong Bhd, Yinson Holdings Bhd, Petronas Chemicals Group Bhd, Panasonic Manufacturing Malaysia Bhd, British American Tobacco (M) Bhd, Petronas Dagangan Bhd, KESM Industries Bhd and Dayang Enterprise Holdings Bhd.

The actives included Sapura Energy Bhd, Velesto Energy Bhd, Bumi Armada Bhd, Hibiscus Petroleum Bhd, Perdana Petroleum Bhd, KNM Group Bhd and My EG Services Bhd.

The gainers included Top Glove Corp Bhd, Nestle (M) Bhd, newly-listed Cosmos Technology International Bhd, Toyo Ink Group Bhd, Rapid Synergy Bhd, Axiata Group Bhd, Amtel Holdings Bhd and Hwa Tai Industries Bhd.

Reuterssaid Southeast Asian stock markets tumbled on Monday as investors panicked over the economic damage from the coronavirus outbreak, and oil prices plunged after Saudi Arabia slashed selling prices and laid out a plan to increase production.

The number of people infected with the coronavirus topped 107,000 across the world as the outbreak reached more countries.

Affin Hwang Capital Research said the FBM KLCI dropped 7.93 points or 0.5% to close at 1,483.1 last Friday.

It said in last week’s trading session, price action indicates that technical rebound is in progress as price register higher highs and higher lows.

“However, on Friday, price began to turn lower, now making lower highs and lower lows, which is an early signal telling us that price is potentially turning lower from current levels.

“Technical indicators consistently indicate bearish signal when the technical rebound came to a halt, hence completing a rising wedge formation, a 'continuous bearish formation' last Friday.

“Consistent plunge in the global equity markets and crude oil prices likely to drag global market into an intermediate term downtrend which could lead into a major bear market cycle. Hence, anticipate local stocks to correct in tandem with the global market in the near term,” it said.