Thursday 28 Mar 2024
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KUALA LUMPUR (March 17): Malaysian banking stocks bore the brunt of the stock market turbulence after the government imposed a two-week nationwide movement control as the number of confirmed Covid-19 cases spiked to the highest level among Southeast Asian countries.

The Bursa Malaysia Finance Index fell 3.05% or 363.28 points to 11,532.01 at the time of writing. Year to date (YTD), it has fallen 25.43%, marking a new lowest point in a decade for the index since May 2010.

In comparison, the FBM KLCI index has shed 20.88% YTD to 1,256.99 at the time of writing. The benchmark index had tanked as low as 1,211.95 this morning, which was down by 5.36% from the previous closing price of 1,280.63. 

The financial sector is a key constituency of the FBM KLCI, with banking stocks accounting for over 30% of the index’s weightage. The FBM KLCI tracks the performance of Malaysia’s top 30 listed corporates based on market capitalisation.

This morning, the decline in banking stocks was led by Hong Leong Financial Group Bhd (HLFG), which fell as much as 21.24% to RM9.75, followed by CIMB Group Holdings Bhd, which shrank as much as 13.06% to RM3.13 and Alliance Bank Bhd, down as much as 10.78% to RM1.49. 

Hong Leong Bank Bhd sank as much as 8.46% to RM11.90, BIMB Holdings Bhd was down as much as 6.15% at RM2.90, AMMB Holdings Bhd was down as much as 6% to RM2.82, RHB Bank Bhd fell as much as 5.62% to RM4.53, while Public Bank Bhd declined as much as 5.24% to RM13.74.

Other banking counters were not spared from the losses too, as Affin Bank Bhd fell as much as 4.76% to RM1.4, Malayan Banking Bhd dipped as much as 3.98% to RM7.

YTD, based on the trading session at 10.30am, the share prices of all banking stocks have fallen by double-digit percentages.

Topping the list was Alliance Bank, down 40.68% to RM1.56, followed by HLFG, which plunged 33.49% to RM11.24, while BIMB slumped 32.73% to RM2.96.

Yesterday, Prime Minister Tan Sri Muhyiddin Yassin announced the movement control order, effective from March 18 to March 31, in a bid to curb the spread of Covid-19. The order is imposed under the Prevention and Control of Infectious Diseases Act 1988 and well as the Police Act 1967, which cover a range of activities.

There were 125 new confirmed Covid-19 cases as at yesterday, bringing the tally to 553 in Malaysia, which remains the worst affected in Southeast Asia. 

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