Market sentiment still weak following a week of heavy losses

PETALING JAYA: Sentiment on the local bourse remained fragile yesterday, with regional bourses extending their sharp fall at the start of the trading week.

Worries about trade tensions between the United States and China continue to weigh heavily, while the spike in oil prices added to the list of growing investors’ concerns.

The FBM KLCI eased two points, or 0.12%, to close at 1,728.74 points. Losers outnumbered gainers 532 to 342, while 359 counters remained unchanged and 649 untraded.

Some 2.03 billion shares worth RM2.03bil changed hands yesterday.

Stocks which continued to be under focus included Gamuda Bhd, which gained seven sen or 2.98% to RM2.42.

Gamuda continues to be heavily traded and was on the top-10 most traded stocks yesterday, as investors were buying into the idea that the government might still allow MMC-Gamuda to resume the underground works for the MRT2 project with some modifications.

Other Asian markets also traded in negative territory yesterday.

Among other notable indices, Japan’s Nikkei 225 tumbled 1.87% to 22,271.30, South Korea’s Kospi Index fell 0.77% to 2,145.12, China’s Shanghai Stock Exchange declined 1.49% to 2568.09 and Singapore’s Straits Times Index dropped 0.76% to 3045.97.

A report by MIDF Research published yesterday said that foreign funds sold their highest amount of Malaysian equities in 16 weeks amounting to RM1.05bil in the previous week, when the panic selling occurred.

“International investors were net sellers on every single day of the week. Last Monday’s foreign net selling of RM227.2mil was of no surprise, as investors reacted to Sunday’s announcement of the termination of the MMC-Gamuda underground works contract for the MRT2,” it said.

“The level of foreign net selling then tapered to below RM200mil on the next two days on Tuesday and Wednesday supported by hopes that the international retendering process of the MRT2 underground works would be reviewed by the government,” it added.

MIDF Research said Thursday’s panic selling saw international investors selling RM327.9mil net, the highest in a month after Wall Street plunged overnight.

The report, which cited data from Bursa Malaysia, however, said Malaysia’s equity markets saw the second-lowest level of foreign attrition last week amongst the four Asean markets that it monitors.

“Malaysia still retains its position as the country with the second-lowest year-to-date foreign net outflows among the four Asean markets,” it said.

Among the individual stocks, MIDF said Tenaga Nasional Bhd registered the highest net money inflow of RM11.02mil last week, while Gamuda saw the largest net money outflow of RM17.83mil.

“Top Glove Corp Bhd recorded the second-highest net money inflow of RM7.18mil, while Petronas Chemicals Group Bhd recorded the second-largest net money outflow of RM5.31mil,” it said.