KUALA LUMPUR: FTSE Bursa Malaysia KLCI (FBMKLCI) hit another lowest point in five months yesterday, making it the worst performing index in the Asia Pacific region for the second day in a row.
Bad sentiment over Malaysia’s high debt concern and unfinished political “malaise” continued to drag the market down, to the largest tumble within less than a month, from the high of 1,895.18 in April 19.
The key index ended yesterday session 28.59 points or 1.58 per cent lower to 1,775.66 points from Wednesday's close of 1,804.25.
Analysts said it was not a bear market but rather a bad sentiment-driven market.
Stock market analyst Nazarry Rosli said the fundamentals are still strong and the market is offering a good opportunity for investors to buy at cheap prices now.
“There are a lot of fundamentally-good stocks right now which investors can purchase at bargain hunting level. Some stocks have shown lower price earnings ratio.
“Therefore, the valuation has become more attractive. It is good time for investors to start accumulating,” he told NST Business.
Rakuten Trade head of research Kenny Yee said the market was expected to get better soon once geopolitical mood improves.
“I reckon recent selling especially by the foreign side may be due to the uncertainties surrounding the country's financial state.
“But I believe the situation will improve overtime when market stabilises as fundamentals remain intact,” he said.
Yee added that the market was now oversold and ripe for stock accumulation especially the index-linked counters.
The banking sector suffered the most from the market decline yesterday. Bursa Malaysia Finance Index had the largest one-day fall since August 2015 after dropping 2.33 per cent to 17,722.89 points, from Wednesday’s close.
Malayan Banking Bhd was the worst performer yesterday with 3.93 per cent share price decline, followed by Genting Malaysia Bhd (3.33 per cent), Public Bank Bhd (2.95 per cent), Axiata Group Bhd (2.93 per cent) and CIMB Group Holdings Bhd (2.73 per cent).
Most Bursa Malaysia indices such as small cap, construction, consumer, plantation and properties also ended in red yesterday.
Market breadth was negative with losers trouncing gainers 752 to 235, with 375 counters unchanged, 542 untraded and 22 others were suspended.
Volume increased to 2.87 billion units, valued at RM3.86 billion from Wednesday’s 2.69 billion units valued at RM3.34 billion.