PETALING JAYA: Stocks related to two key commodities stole the limelight on Bursa Malaysia yesterday as the market hit yet another all-time-high daily trading volume on retail investor-fuelled liquidity.
After trading sideways for the past several weeks, the rise in Brent grade crude oil price to above US$45 per barrel led investors to scoop oil and gas (O&G)-related counters, underpinned by hopes of continued recovery in the “black gold” prices.
The Energy Index of Bursa Malaysia surged by over 12% in a single day, with a trading volume of 7.67 billion.
Dominating nearly 28% of the bourse’s total trading volume of 27.8 billion shares, the Energy Index has unseated the Technology Index as the biggest contributor to volume of shares traded.
The 14.5 sen Sapura Energy Bhd alone, which was the most active stock on the stock exchange, contributed 4.13 billion in volume.
Despite the frenzy in O&G counters, it was entirely a different story for the gold-related counters on Bursa Malaysia.
After gold prices dropped by over 2% to below US$1,990 per ounce, pressured by a stronger US dollar, investors scrambled to dump gold-related stocks in panic selling.
Borneo Oil Bhd, whose share price rallied to a two-year high in the past few days after the company announced a gold deposits discovery in one of its mining plots, also dived by almost 12% yesterday.
Across the overall stock exchange, the market breadth was overwhelmingly negative as a total of 722 losers trumped 483 gainers by market close. A total of 336 counters were unchanged.
While the overall trading volume surged to a fresh record of 27.8 billion shares, the value traded was much lower at RM7.8bil.
This translates into merely an average value traded of 28.07 sen, indicating clear interest in small-cap penny stocks and driven by retail investor-fuelled liquidity.
It also appears that investors are moving away from healthcare-related stocks as the Healthcare Index only contributed 101.5 million trading volume, a far cry from what it used to be in July.
The bellwether index of Bursa Malaysia, FBM KLCI, fell for the third straight day by 6.92 points or 0.44% to 1,564.74 points, marking the lowest level since early July.
A trader told StarBiz that the 30-stock index fell due to profit-taking activities.
“A total of 19 constituent stocks under FBM KLCI declined, while only seven rose.
“It was a broad-based downward sentiment in FBM KLCI because you can see the decline in share prices of banking stocks such as Malayan Banking Bhd, RHB Bank Bhd and CIMB Group Holdings Bhd, telcos such as Axiata Group Bhd, Digi.com Bhd and Maxis Bhd as well as plantation-related stocks such as Sime Darby Plantation Bhd, IOI Corp Bhd and Hap Seng Consolidated Bhd, ” he said.
Looking ahead, however, the trader feels that the FBM KLCI will reverse its recent trend and rise again, in tandem with the trend seen in other key global indices such as the United States’ Dow Jones Industrial Index.
Across the Asian stock exchanges yesterday, most benchmark indices finished higher.
Japan’s Nikkei 225 index closed up 1.88%, while Hong Kong’s Hang Seng index rose 2.1%.
South Korea’s Kospi increased 1.35% to its highest close since June 14,2018.
However, China stocks ended lower on Tuesday, dragged down by tech firms, as worries over rising Sino-US tensions weighed on investor sentiment, Reuters reported.
The Shanghai Composite index closed down 1.15% at 3,340.29, while the blue-chip CSI300 index was down 0.91%.