Market started on a bearish note this year but may rebound this week

Daily FBM KLCI chart as at January 4, 2019.

Global markets indices and commodities performances as at January 4.

Last year (2018), the FBM KLCI ended up in red and the local market wasn’t the only casualty. Markets globally ended lower. The index fell 5.8 per cent last year, which was one of the lowest declines as compared to other markets. The biggest drop in Asia was China’s Shanghai SEC Index that fell 24.6 per cent. In Europe, Germany’s DAX fell 18.3 per cent. UK’s FTSE100 index fell 12.6 per cent while US Dow Jones Industrial Average declined 6.7 per cent.

The FBM KLCI fell 1.3 per cent to 1,669.78 points last week on profit taking after a two-week rally before the end of last year. Market sentiment was generally weak on lack of catalysts. Most other markets closed higher except for the local market and Japan.

Trading volume was firm as compared to the previous week but the trading value has declined significantly. This indicates more lower prices stocks were being traded and hence lack of institutional participation. The average daily trading volume has risen 1.9 billion from 1.6 billion shares in the previous week but the average daily trading stayed firm at RM1.2 billion.

Both local and foreign and local institutions were net sellers and local retail was net buy. Net buy from local retail was RM65.6 million. Net sells from local and foreign institutions were RM47.3 million and RM18.3 million respectively.

In the FBM KLCI, decliners beat gainers 11 to 4. The top gainers were Westports Holdings Bhd (2.8 per cent in a week to RM3.74), Hong Leong Financial Group Bhd (2.1 per cent in a week to RM19.26) and MISC Bhd (1.4 per cent to RM6.67). The top three decliners were Press Metal Aluminium

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