STOCKS on Bursa Malaysia extended losses from last week. The FBM KLCI fell sharply on opening and closed down 2.06% at 1,697.31. This marks the lowest point for the benchmark index in the year to date, giving back all the gains made since August 2013.
The local bourse’s poor performance can be attributed to a combination of factors including falling oil prices, a weaker ringgit and worries that Malaysia will not be able to meet its targeted GDP growth of 5%.
Decliners outpaced gainers by a wide ratio of 15 to 1. Trading volume picked up to over 2 billion shares.
Most markets in the regions too closed in the red. This followed sharp losses on Wall Street last Friday. US stocks suffered one of the worst weeks in years amid concerns that lower oil prices is a harbinger for sluggish global economic growth.
My decision to sell off most of my stocks is looking to be a good one. I foresee further weakness in the market and will hold my position for now.
My portfolio returns declined by 0.36% to RM 100,849.90.
The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 9.3%.
This article first appeared in The Edge Financial Daily, on December 16, 2014.