The Malaysia stock market has finished lower in two straight sessions, plummeting almost 100 points or 7 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,345-point plateau and it’s expected to open in the red again on Monday.
The global forecast took a major hit when the U.S. Federal Reserve took emergency action on Sunday to combat the rapidly accelerating Covid-19 crisis. The Fed slashed its benchmark lending rate from 1-1.25 percent to 0-0.25 percent and also launched a new round of quantitative easing worth $700 billion to help the U.S. economy deal with the effects of the virus.
The U.S. stock markets did not react well to the news as the depth of the danger to the global economy becomes more apparent; Dow futures suggest a slide of 1,000 points when it opens later today.
The KLCI finished sharply lower on Friday with losses in every sector – especially the plantations and financials.
For the day, the index sank 74.68 points or 5.26 percent to finish at 1,344.75 after trading between 1,320.96 and 1,369.00. Volume was 5.7 billion shares worth 4.9 billion ringgit. There were 819 decliners and 223 gainers.
Among the actives, Press Metal cratered 12.47 percent, while Sime Darby Plantations plummeted 10.09 percent, AMMB Holdings plunged 7.87 percent, Hartalega Holdings tumbled 7.76 percent, Sime Darby skidded 7.57 percent, Kuala Lumpur Kepong retreated 6.50 percent, IOI Corporation declined 6.38 percent, CIMB Group sank 6.09 percent, Petronas Chemicals dropped 5.81 percent, Public Bank surrendered 5.56 percent, Genting shed 5.11 percent, Tenaga Nasional and Maybank both lost 4.83 percent, Top Glove fell 4.15 percent, Genting Malaysia slid 3.57 percent, Digi.com dipped 2.61 percent, Dialog Group was down 1.54 percent and Axiata eased 1.02 percent.
The lead from Wall Street is broadly positive as stocks