KUALA LUMPUR (September 20): Bursa Malaysia Bhd’s share price and foreign participation have fallen to a minimum since June 2020, as investors trade stocks in a context dictated by the global Covid-19 pandemic that has influenced by global fiscal and monetary decisions to support economic growth.
According to updates from the website Bursa, regulator and operator today, the price of the group’s shares fell three or 0.4% at 15:22 to 7.39 RM, which the company values in approximately 5.98 million RMS.
Bursa, which has 809.28 million shares issued, has traded today between 7.77 and 7.44 RM.
At 7.37 RMS, the intraday stock price of Bursa is the lowest, probably since June 26, 2020, when the stock price closed at 7.78 RM.
Meanwhile, Bursa’s foreign share fell to 17.2% in August 2021 from 18.1% a month earlier (July 2021), according to the latest updates to the group’s website.
In June 2020, Bursa’s foreign stake stood at 17%, the group said.
Today, the stock price of Bursa has fallen in parallel with the market in general, as investors disregard factors such as the political meeting of the US Federal Reserve (Fed) tomorrow (September 21) and on Wednesday (September 22) during which the Fed is expected to lay the groundwork for its quantitative easing (QE) or gradual reduction in asset purchases.
These asset purchases by the Fed are intended to support the U.S. economy recovering from the impact of the Covid-19 pandemic.
The anticipation of the reduction in US QE reduction time has led to the expectation of US interest rate hikes. In theory, interest rate hikes are bad for stock markets.
Globally, it has been reported today that MSCI’s broader Asia-Pacific stock index outside of Japan fell 1.8% to a low since August 24, with Australia falling sharply of 2%.
“Dow Jones futures fell 1% and S&P 500 futures fell 0.8%, after all three Wall Street indices marked weekly losses on Friday after days of turmoil.
“The Fed is expected to still lay the groundwork for a reduction in time at Tuesday and Wednesday’s policy meeting, although it is agreed that an actual announcement will be delayed until the November or December meetings.
“Ten-year Treasury yields reached a two-month high and the curve flattened before the meeting,” Reuters reported.
Today in Bursa, the 30-share KLCI FBM has fallen 17.39 points or 1.12%, to 1,531.12 at 4 p.m.
TA Securities Holdings Bhd analysts wrote in a note today that as KLCI’s technical momentum indicators continue to weaken after last week’s resumption of the correction, a downward bias can be expected in the immediate term.
“Hot business interest should persist given the uncertainties about the negative impact on profits from unamortized loan moratoriums (amortization) and the possible corporate income tax on supernormal profits of listed companies due to the pandemic. being key to strengthening economic recovery plays out, ”TA said.
Analysts at MIDF Amanah Investment Bank Bhd have written today in a note that last week foreign investors continued to be net buyers of shares listed in Malaysia, which recorded a net inflow of RM 125.97 million.
“This was the sixth consecutive week of net buying by foreign investors,” MIDF said.