KUALA LUMPUR, March 14 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) ended the week slightly higher, in line with regional indices despite the weaker performance on Wall Street overnight. At 5 pm, the FBM KLCI rose 2.12 points or 0.14 per cent to 1,512.15 from Thursday’s close of 1,510.03. The market bellwether opened 10.08 points lower at 1,499.95, and moved between 1,493.29 and 1,516.25 throughout the day. On the broader market, gainers outpaced losers with 680 to 292, while 437 counters were unchanged, 1,009 untraded, and 13 suspended. Turnover was marginally lower at 3.24 billion units worth RM2.5 billion from 3.25 billion units worth RM2.90 billion on Thursday.
Market Update: Recession Fears Impact Global Markets; NATGATE Sees a Sharp Drop Despite Fraud Case Denial
Global Market Overview:
Global markets took a major hit with all major indices in the red:
- DJIA: -2.08%
- S&P 500: -2.69%
- Nasdaq: -4.00%
Key Takeaways:
- Recession fears triggered a sell-off in technology stocks, with Tesla leading the way, dropping 15.43%. In contrast, other major tech stocks like the Magnificent Seven saw declines between 2-5%.
- U.S. job market data suggests job losses are likely to accelerate, which could trigger further layoffs and tighter job markets.
- Oil and stock markets faced additional pressure from trade tariffs imposed on exports from Mexico, China, and Canada, which also dampened investor sentiment.
US Treasury Yields:
- The 10-year Treasury yield dropped to 4.16%, reflecting a cautious market as bond futures saw a significant sell-off, following predictions of possible interest rate cuts by the Federal Reserve in upcoming meetings.
Malaysia Market Snapshot:
- MYR: Closed at 4.4270, showing a slight gain of +0.30%.
- KLCI Performance: Dropped by 10.81 points to 1,536.46, reflecting weakness across most sectors, particularly Healthcare (-2.47%).
- Foreign Equity Flow: Outflow of MYR 365 million for the day, continuing the negative trend seen this month.
Key Sector Performance:
- Healthcare faced the worst hit, down by 2.47%, largely driven by declines in glove manufacturers.
- Financials (+0.52%) and Small Cap (+1.66%) were the standout performers despite the overall market slump.
Trade Focus: NATGATE’s Sudden Drop
NATGATE (stock code: 0270) saw its shares plummet by 13.43%, marking the lowest level since October 23. The company denied any involvement in the ongoing fraud investigation related to the alleged movement of NVIDIA chipsto unauthorized parties, including Malaysia and Singapore.
Analysts remain divided:
- UOB KayHian: Maintains a Buy rating with a target of 2.33 MYR.
- Macquarie: Holds an Outperform rating, targeting 4.00 MYR.
- Kenanga: Also keeps an Outperform rating with a target of 2.21 MYR.
Despite the controversy, the stock is still under close scrutiny by U.S. regulators, but NATGATE continues to deny any wrongdoing, with the Malaysian government finding no evidence of involvement.
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