During the trading week from Dec 16-20, the benchmark KLCI recorded a net loss of 17.34 points, or 1.08%, from three days of decline and two days of moderate surge. The key index settled at 1,591.41 points on Friday.
The three days of decline on Monday, Tuesday and Friday resulted in a cumulative loss of 20.10 points, offset partially by the two days of surge on Wednesday and Thursday which produced a cumulative gain of 2.76 points, resulting in a net loss of 17.34 points.
On Monday, the benchmark index decreased by nearly two points (1.90 points) to start the week in the red. On the following day, the key index dipped a massive 9.52 points. On Wednesday and Thursday, the index recovered slightly by gaining 2.25 points and 0.51 points, respectively. Owing to selling pressure, the benchmark KLCI again plunged nearly nine points (8.68 points) to end the week below the 1600-point psychological threshold, at 1,591.41 points.
The index reading at 1,591.41 points is the lowest KLCI close within this week, and also the lowest in 20 trading days since Nov 25.
For the week, the key index rallied to the high of 1,609.43 points on Monday, and slumped to the low of 1,590.83 points on Thursday. The week’s widest trading range of almost 15 points (14.87 points) on Friday saw the index surged to the high of 1,606.28 points.
In the backdrop, the US market after the week’s trading ended lower where major indices declined, including the Dow Jones Industrial Average (DJIA) which dropped 2.25%, the S&P 500 which fell 1.99%, and the Nasdaq which shed 1.78%. Sharp decline of the three indices was noted especially on Wednesday (US time zone) when the US Federal Reserve announced the last rate cut of 25 basis points for the year, and anticipated two rate cuts, reportedly 25 basis points each, next year.
Reuters reported on Friday that concerning the US markets, investors liquidated equity funds at the fastest rate in 15 years in the week from Dec 12 – Dec 18, driven by caution and profit-taking. According to LSEG Lipper data, investors divested a net US$37.22 billion (about RM167.71 billion) worth of global equity funds in the stated week ending Wednesday, which is the largest amount for a single week since September 2009.
In terms of sector performance, the Utilities sector recorded the biggest gain after a week’s trading where the index advanced 3.83% to close at 1,758.59 points, followed by the REIT Index which added 0.75% for the week to settle at 864.65 points, and the Health Care Index which surged 0.16% to end the week at 2,337.41 points. (REIT: Real Estate Investment Trust)
The utilities, REIT and heathcare were the only three sectors that ended the week in the green territory. All other indices declined, including the plantation index and the accompanying FBM suite of palm oil indices which lost between 1.80% and as much as 3.58% during the week, as well as the expansive industrial sector which gave up 3.13% to settle at 170.26 on Friday.
Below is a table detailing the movement of sector indices of the exchange for the week of Dec 16 – Dec 20 on a Friday-to-Friday basis:
Also, the last Initial Public Offerings (IPO) for year 2024 are all listed on Bursa’s ACE market within this week, including Topvision Eye Specialist Bhd (Dec 16, ACE Healthecare, RM0.33), Vanzo Holdings Bhd (Dec 17, ACE Consumer, RM0.15), Carlo Rino Group Bhd (Dec 18, ACE Consumer, RM0.27) and Winstar Capital Bhd (Dec 19, ACE Industrial, RM0.35).
At closing on Friday, eyecare specialist Topvision settled at RM0.305 after giving up three sen, which represented a 7.58% decline from the listing price of 0.33, while fashion handbag and footwear brand Carlo Rino closed at RM0.205, shedding 6.5 sen or 24.07% from the issuance price of RM0.27.
Fragrance producer and distributor Vanzo settled at RM0.165, marking an increase of 1.5 sen or 10% over its listing price of RM0.15 whereas aluminium extruder Winstar closed at RM0.505, which represented a 15.5 sen or 44.29% surge above its IPO price o fRM0.35.
