The FBM KLCI extended its decline on October 19, closing at 1,595.75 and below the 1,600 support level. The index trimmed 12.01 points from Friday’s close of 1,607.76. An analyst said persistent foreign selling in banking heavyweights weighed on the benchmark.
Why Did the FBM KLCI Fall Below 1,600 on October 19?
The index opened 3.58 points lower at 1,604.18 and traded between 1,593.37 and 1,604.65. Selling pressure kept it near the day’s lows.
Breadth was weak. Decliners outnumbered gainers 741 to 322, with 482 counters unchanged, 1,299 untraded and 35 suspended.
Turnover fell to RM2.49 billion units worth RM2.38 billion, down from last Friday’s 3.13 billion units worth RM3.27 billion.
What Happened to Maybank, Public Bank and Other Bank Shares?
Public Bank (1295) erased 12 sen to RM4.71, while Maybank (1155) shed nine sen to RM9.90. Banking counters bore the brunt of the selling.
- CIMB (1023): eased five sen to RM7.15
- AMMB Holdings (1015): slipped 16 sen to RM6.19
- RHB Bank (1066): went down 12 sen to RM7.20
Among other financial counters, Hong Leong Bank lost 20 sen to RM21.10 and Hong Leong Financial Group erased 28 sen to RM17.56. The Financial Services Index slumped 260.85 points to 18,490.97.
What Did Rakuten Trade Say About Blue-Chip Valuations?
Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, remained cautious. He said the fall below 1,600 suggested near-term selling pressure had yet to subside.
Still, the correction brought valuations of selected Malaysian blue-chip stocks to more attractive levels. Rakuten Trade pointed to companies with strong fundamentals, resilient earnings and sustainable dividend yields.
Selling pressure has been observed in the market. Income-focused readers can compare payout records in the Dividend Investing Guide.
Which Heavyweights and Gainers Bucked the Trend?
Press Metal jumped 18 sen to RM6.68, YTL Power advanced 11 sen to RM5.26 and SD Guthrie improved three sen to RM5.72.
TNB gave up two sen to RM12.98, while IHH Healthcare shaved off 10 sen to RM7.90.
Among top gainers, Nestle garnered 58 sen to RM89.90. Ayer Holdings rose 25 sen to RM7.85, Kuala Lumpur Kepong gained 16 sen to RM20.16 and Petronas Dagangan climbed 14 sen to RM19.78.
Top losers included United Plantations, which slid 36 sen to RM30.24, and Allianz Malaysia, which shrank 34 sen to RM19.46.
How Did the Broader Index Board and Sectors Move?
- FBM Mid 70: down 92.19 points to 17,133.74
- FBM Emas Shariah: down 45.68 points to 11,874.19
- FBM Emas: down 82.57 points to 11,909.69
- FBM Top 100: down 81.55 points to 11,705.22
- FBM ACE: down 37.76 points to 5,393.29
Sector indices split. The Plantation Index gained 20.49 points to 8,653.37, the Energy Index climbed 2.56 points to 823.56 and the Industrial Products and Services Index added 1.31 points to 174.10.
Main Market volume narrowed to 1.54 billion units worth RM2.15 billion, from 1.80 billion units worth RM2.97 billion last Friday. Warrants turnover tumbled to 508.75 million units worth RM54.41 million.
Is the FBM KLCI Range of 1,580 to 1,610 Worth Monitoring?
Rakuten Trade set immediate support at 1,590, followed by 1,580. It said a recovery above the 1,600–1,610 range would be needed to restore market confidence.
Investors may want to watch whether foreign selling in banks eases before the index tests those levels. The equities broker expects selective bargain hunting to cushion further downside.
Key Takeaways
- The FBM KLCI closed at 1,595.75, down 0.74%, below the 1,600 support level.
- Maybank (1155) fell to RM9.90 and Public Bank (1295) to RM4.71 as foreign selling continued.
- Rakuten Trade expects the index to trade between 1,580 and 1,610 this week, with support at 1,590 and 1,580.
- Rakuten Trade says selected blue-chip valuations are more attractive, but sees near-term selling pressure yet to subside.
Disclaimer: This article is general information, not personalised financial advice. Always do your own research before making any investment decision.
Frequently Asked Questions
Where did the FBM KLCI close on October 19?
The FBM KLCI closed at 1,595.75, down 12.01 points or 0.74% from Friday’s close of 1,607.76. The close put the index below the 1,600 support level.
Why did the FBM KLCI fall below 1,600?
Persistent foreign selling in banking heavyweights weighed on the index. Maybank shed nine sen to RM9.90, while Public Bank erased 12 sen to RM4.71.
What are the FBM KLCI support levels to watch this week?
Rakuten Trade set immediate support at 1,590, followed by 1,580. It expects the index to trade between 1,580 and 1,610 this week.
Does Rakuten Trade see Malaysian blue-chip stocks as more attractively valued now?
Rakuten Trade said the correction brought valuations of selected blue-chip stocks to more attractive levels, particularly those with strong fundamentals and sustainable dividend yields. This is an analyst view, not a recommendation on any specific stock.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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