Bursa’s blue-chip index gains 4.3pct in 2020, Supermax best-performing stock
KUALA LUMPUR: Bursa Malaysia’s FBM KLCI ended the pandemic-infected 2020 with a commendable 4.3 per cent year-on-year gain, although blighted by profit-taking pressure on the last trading day on Thursday.
Malaysia’s blue-chip index concluded the last day at 1,627.21 points over its end-2019 closing of 1,588.76 points.
The 30 blue-chip stocks making up FBM KLCI suffered double-digit losses with late profit-taking and selling dominating trade and overpowered late window-dressing action to end at the session low.
At the close, the index was off by 17.2 points, or one per cent off the opening high of 1,644.26 points.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said FBM KLCI was swimming in a sea of red with all constituents recording daily declines on New Year’s eve.
This bucked the trend of regional peers such as China’s CSI 300 index which gained nearly two per cent partly underpinned by expansion in its manufacturing activity albeit at a slower pace.
“Investors were trying to weigh between the potential for rising inflation and a possible economic recovery while gauging whether the rebound might be impeded early in the year by new strains of Covid-19 and struggles with rolling out vaccines,” Adam told the New Straits Times on Sunday.
Among the 30 FBM KLCI constituents, IHH Healthcare Bhd and Sime Darby Plantation Bhd had retreated the most at a tune of more than three per cent on Thursday, he said.
“The drop in SD Plantation was due to the United States banning imports of palm oil from the company from Wednesday over allegations of forced labour in the production process.”
He said as such, the Bursa Malaysia Plantation Index had declined the most among sectors by 1.5 per cent.
Adam said as the market would begin the year on a clean slate on Monday, trading activities would pick up. This might push FBM KLCI to a level around 1,650 points, barring any unforeseen news regarding the infections of the new strain of Covid-19.
Bursa’s best performer for the year was Supermax Corp Bhd, which gained 798.4 per cent thanks to the Covid-19 crisis.
Other glove makers are among the top performers, with Top Glove Corp Bhd gaining 380.8 per cent, Kossan Rubber Industries Bhd by 123.3 per cent, and Hartalega Holdings Bhd by 129 per cent.
According to data compiled by Bloomberg, these companies collectively gained RM79.42 billion in market capitalisation, or 76 per cent of total market capitalisation increase from all listed entities of Bursa.
The top loser is Genting Bhd, which fell 24.4 per cent through 2020, as the tourism-related company was continuously affected by the movement restrictions due to Covid-19.
Source: NST