FBM KLCI Declines as Banking Stocks Weigh on Market Performance

Meanwhile, on Wednesday, the FTSE Bursa Malaysia KLCI (FBM KLCI) closed lower, breaking its three-day winning streak. It finished the day down 10.49 points, or 0.66%, at 1,573.02. This decline was as banking shares such as Maybank and CIMB weighed down on the index. The day’s trading was characterized by a change of high of 1,586.85 and a low of 1,572.27 points showcasing a jittery market.

Of all the factors that contributed on the downside, Kluang Rubber experienced the biggest decline, losing 40 sen to RM5.56. Other decliners included BLD Plantations (-20 sen to RM11). Apart from that, United Plantations fell 16 sen to close at RM22.32. Specifically, decliners beat advancers by a ratio of 626 to 459, indicating an overall tough day for investors.

Based on the previous day’s trading volume, about 3.71 billion shares exchanged hands, representing a value of RM2.74 billion. Maybank’s performance was the biggest impact on the index. Its share price fell 10 sen to RM10.10, exerting the most negative influence of 1.7126 points on the KLCI. Just like CIMB, its immediate competitor’s (CIMB) KLCI’s index fall of eight sen to RM7.16 caused 1.2190 points reduction to the index.

The broader regional office market continued to trend downward. Japan’s Nikkei 225 index plummeting by 0.98%, while South Korea’s Kospi fell 0.73% and Hong Kong’s Hang Seng index closed 0.79% lower. These are similar international market movements that indicate a global sentiment which could have led to a herd behaviour of the investors in Malaysia.