KUALA LUMPUR, Nov 12 (Bernama) -- Bursa Malaysia extended its losing streak for a fourth consecutive session, closing lower on Thursday amid continued broad-based selling that weighed on market sentiment, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 9.23 points or 0.57 per cent to 1,585.96 from Wednesday's close of 1,595.19. The benchmark index opened 3.61 points lower at 1,591.58 and fluctuated between an intraday low of 1,583.66 and a high of 1,592.89 throughout the day. Market breadth remained negative with losers thumping gainers 799 to 318, while 476 counters were unchanged, 1,181 untraded and 13 suspended. Turnover climbed to 3.06 billion units valued at RM2.56 billion compared with yesterday’s 2.90 billion units valued at RM2.33 billion.
Typhoon Yagi, the strongest in Asia this year, has caused significant damage to factories and warehouses in northern Vietnam's export-driven industrial hubs, resulting in potential disruptions to global supply chains. The severe weather has led to deadly floods and landslides, killing dozens and devastating infrastructure, including power networks and roads.
Key Takeaways:
Severe Damage to Factories and Warehouses: Many factories and warehouses in Haiphong, a major industrial hub, have been severely impacted. Facilities experienced blown-off roofs, collapsed walls, and flooding. In the coastal city, around 20 of the 150 investors' plants will be out of operation for at least a few weeks. LG Electronics partially resumed operations on Tuesday after its factory sustained significant damage.
Global Supply Chain Implications: The disruptions could affect supply chains worldwide, as Vietnam hosts large-scale operations for multinationals exporting products to the US, Europe, and other developed countries. Companies like Jupiter Logistics, co-owned by Japan Airlines, and Chinese solar panel maker Jinko Solar experienced significant damage to their facilities.
Power and Water Shortages: The typhoon has damaged numerous electricity lines, causing prolonged power outages in several northern areas. In Quang Ninh province, many factories remain without electricity or water. State-owned power distributor EVN is working to restore the affected lines, but power consumption is expected to remain a third below normal for weeks or even months.
Risks to Other Industrial Hubs: Industrial zones in Thai Nguyen and Bac Giang, which host large factories of multinational companies like Samsung Electronics and Apple supplier Foxconn, also face flood risks. However, initial observations indicated no significant flooding at Samsung's facilities in Thai Nguyen as of Wednesday, although more rain is expected.
The prolonged disruptions are expected to have lasting effects on Vietnam’s industrial output, potentially delaying global shipments and impacting international supply chains for weeks.
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