Bursa Extends Losing Streak as FBM KLCI Hits Yearly Low

Quick Answer: The FBM KLCI slid 0.57% to 1,585.96 on 12 November, its fourth straight daily loss and a year-to-date low, as broad selling hit banking stocks. Losers outnumbered gainers 799 to 318. The index failed to reclaim 1,600, and IPPFA sees 1,575 and 1,550 as the next downside supports.

The FBM KLCI closed at 1,585.96, down 9.23 points, extending its losing streak to four sessions. Broad-based selling, led by banking stocks, pushed the benchmark to its lowest level of the year.

Why Did the FBM KLCI Hit a Year-to-Date Low?

FBM KLCI yearly low on Bursa Malaysia stock market screen — Bursa Malaysia trading screens showed broad selling on 12 November.

IPPFA director of investment strategy and country economist Mohd Sedek Jantan said mounting external uncertainties triggered further risk reduction across Malaysian equities. He named three triggers:

Renewed concerns over stretched valuations in artificial intelligence-related stocks
A more hawkish US Federal Reserve rate outlook
Stalled diplomatic negotiations between the United States and Iran

The index opened 3.61 points lower at 1,591.58. It traded between an intraday low of 1,583.66 and a high of 1,592.89.

How Broad Was the Selling on Bursa Malaysia?

Market breadth stayed negative throughout the session. Losers thumped gainers 799 to 318, while 476 counters were unchanged, 1,181 untraded and 13 suspended.

Turnover climbed to 3.06 billion units worth RM2.56 billion, up from 2.90 billion units valued at RM2.33 billion on Wednesday.

FBM Emas Index: down 89.69 points to 11,788.09
FBM Top 100 Index: down 80.10 points to 11,619.25
FBM Emas Shariah Index: down 98.18 points to 11,773.27
FBM ACE Index: down 119.53 points to 5,186.97
FBM Mid 70 Index: down 169.29 points to 16,948.57

Main Market volume rose to 1.43 billion units worth RM2.28 billion, from 1.38 billion units worth RM2.01 billion. ACE Market volume expanded to 788.18 million units, yet value fell to RM174.71 million from RM227.60 million.

Which Heavyweights Pulled the Index Lower?

Tenaga Nasional lost 16 sen to RM12.80
YTL Power International reduced 39 sen to RM4.40
Maybank shed four sen to RM9.91
Public Bank was flat at RM4.53
CIMB perked up one sen to RM7.09
IHH Healthcare gained 11 sen to RM7.84

CIMB and IHH Healthcare were the only heavyweights in the green. Maybank’s slip shows the banking drag was not uniform.

Where Did Sector Money Flow?

The Plantation Index surged 191.34 points to 8,919.27, the only major sector gain. The Financial Services Index fell 34.42 points to 18,456.79.

The Energy Index lost 7.19 points to 781.82. The Industrial Products and Services Index edged down 1.42 points to 171.02.

Industrial products and services led volume with 300.40 million shares. Consumer products and services followed with 273.18 million, then technology with 215.28 million.

What Did Rakuten Trade Say About Bank Valuations?

Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, expects investors to stay cautious near term. He says the correction has made valuations of selected blue chips, particularly banking stocks, increasingly attractive.

He points to healthy prospective dividend yields from banks. He also says the FBM KLCI is approaching oversold territory, which could encourage bargain hunting. Readers new to yields can start with our Dividend Investing Guide.

Which Stocks Are Worth Monitoring After the Fourth Down Day?

Top gainers on the day were led by United Plantations, which rose RM1.36 to RM31.60.

Malaysian Pacific Industries: up 22 sen to RM38.52
Kuala Lumpur Kepong: up 30 sen to RM21.38
Concrete Engineering Products: up 22 sen to RM4.60
SD Guthrie: up 16 sen to RM6.15

Nestle led the decliners, falling 60 sen to RM94.94. Fraser & Neave dipped 40 sen to RM20.14.

UWC: down 31 sen to RM6.37
Ranhill Utilities: down 30 sen to RM2.90
Hong Leong Industries: down 40 sen to RM16.40

In active trade, V.S Industry eased one sen to 28.5 sen. GIIB Holdings slid five sen to 10.5 sen.

Key Takeaways

The FBM KLCI closed at 1,585.96, down 0.57%, its fourth straight loss.
Losers beat gainers 799 to 318, and turnover rose to RM2.56 billion.
The index needs to reclaim 1,600. Next supports are 1,575 and 1,550, per IPPFA.
Rakuten Trade’s Thong Pak Leng flags banking valuations and dividend yields as attractive.
Plantation Index gained 191.34 points, while Financial Services lost 34.42 points.

This article is for information only and is not investment advice. Figures are from the Bernama market report. Do your own research before making any decision.

Frequently Asked Questions

Why is the FBM KLCI falling for four straight sessions?

Broad-based selling, especially in banking stocks, dragged the index lower. IPPFA’s Mohd Sedek Jantan cited AI-related valuation concerns, a more hawkish US Federal Reserve outlook and stalled US-Iran diplomatic talks.

What are the next support levels for the FBM KLCI?

IPPFA’s Mohd Sedek Jantan named 1,575 and then 1,550 as the next downside supports. The index also failed to reclaim the 1,600 level.

How did Maybank and Public Bank shares move?

Maybank shed four sen to RM9.91, while Public Bank was flat at RM4.53. CIMB rose one sen to RM7.09 on the same day.

Are bank dividend yields attractive after the sell-off?

Rakuten Trade’s Thong Pak Leng says banking stocks offer healthy prospective dividend yields after the correction. The source does not give specific yield figures, so check each bank’s latest declared dividend and do your own research.

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