Market realigns to upcoming changes

The benchmark index FBM KLCI closed 44.88 points lower to 1,562.71 points after it took a dive in the final trading hour with volume spiking by about 50%. “The drop in the FBM KLCI yesterday is likely driven by the MSCI rebalancing, as well as the upcoming reshuffling in the FBM KLCI components. Some funds were selling their positions from the recent rally in the stock market and holding cash to make new positions for 2021, ” a fund manager told StarBiz.

PETALING JAYA: The sharp plunge in the FBM KLCI just before the market closed yesterday could be due to investors realigning their portfolio ahead of the upcoming changes to the index’s components and the MSCI Malaysia index, according to fund managers.

The benchmark index FBM KLCI closed 44.88 points lower to 1,562.71 points after it took a dive in the final trading hour with volume spiking by about 50%.