KUALA LUMPUR: Bursa Malaysia ended in the red on Black Monday due to persistent selling pressure, in line with bearish regional markets, with the benchmark index reaching its lowest in a decade.
At the close, the FTSE Bursa Malaysia (FBM KLCI) erased 64.12 points or 4.76 per cent to 1,280.63.
After opening 25.38 points lower at 1,319.37 this morning, the benchmark index moved between 1,278.48 and 1,319.37 throughout the day.
Turnover decreased to 4.47 billion shares worth RM3.68 billion from 5.67 billion shares worth RM4.90 billion recorded last Friday.
A dealer said selling pressure intensified in the local market amid uncertainties due to COVID-19 that have triggered travel bans and a recession scare, coupled with lower oil prices.
He said the decline in FBM KLCI was also seen on the regional front, with Singapore's Straits Times Index going down 4.95 per cent to 2,503.60 while Hong Kong's Hang Seng Index reduced 4.03 per cent to 23,063.57 and the Jakarta Composite Index declined 4.48 per cent to 4,687.86.
Meanwhile, OANDA senior market analyst for Asia-Pacific Jeffrey Halley said the US Federal Reserve's aggressive move to cut interst rates, rather than calming markets, appeared to have highlighted just how serious the international situation has become.
”The actions of the Fed, in particular, cutting the fed funds rate by 100 basis points, will likely spark a wave of aggressive rate cuts by Asia’s central banks this week.
“Asian markets are set for a tough start to the week, with only the anticipation of further easing by regional central banks likely to offer any support,” he said in a note.
A check on Bursa Malaysia’s website also showed that the local exchange had suspended the proprietary day trading (PDT) and intraday short selling (IDSS) of 23 companies today, including UMW Holdings Bhd, DRB-Hicom Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Sunsuria Bhd and MyEG Services Bhd.
The suspension came after these stocks dropped more than 15 per cent from the reference price.
The stock exchange said PDT and IDSS activities for these counters would only be activated the following trading day on Tuesday, March 17, 2020 at 8.30 am.