AFTER the Philippines Stock Exchange Index, which is down 8.2% year-to-date, the FTSE Bursa Malaysia KLCI (FBM KLCI) is now the second worst-performing index in Asia this year with a year-to-date decline of 7.7%.
For foreign investors, who are likely using the US dollar as their base currency investing in the Malaysian bourse, their year-to-date return in dollar terms is even larger at negative 12.9%, as the Ringgit is down by 5.2% so far this year.
CLICK TO ENLARGE CLICK TO ENLARGE
One of the reasons for the underperformance of the local bourse is the relentless selling pressure that we have seen coming from foreign institutional shareholders.
In fact, based on data that has been compiled since 2014, net outflows were recorded in seven out of the last eight years. As can be seen from the chart, foreign flows to a large extent determine the performance of the FBM KLCI.
With the exception of last year, whereby the benchmark index rose 2.4%, despite the RM24.6bil net foreign outflows, the market has always gone the same direction as per foreign flows.
In 2020, despite the huge net foreign outflows, the 30-stock index provided positive returns on the back of the performance of the two main index-linked glove stocks, Top Glove Corporation and Hartalega Holdings, which accounted for 109 index points gain of the FBM KLCI.
Supermax, which was added with effect from Dec 21, 2020, provided negative returns of about four points to the FBM KLCI last year. Hence, although the 30-stock index gained 38 points last year, the index would have been at just 1,523 points and down 4.2% for the year, had the two glove stocks not perform as well as they did
This year, the glove stocks have taking a beating and the three stocks alone contributed to a 65 points loss to the index (Note: Supermax has since been removed from the 30-stock index with effect from June 21, 2021 and was replaced by Mr. D.I.Y. Group).
Hence, if we were to add back the 65 points loss due to the sell-off among the glove stocks, the FBM KLCI will be at 1,567 pts as of Thursday’s close, or up 2.9% year-to-date from last year’s adjusted performance.
A Supermax Supermax is one of the world's leading manufacturers and markets for healthcare gloves and a sales leader in the U.S. dental segment. With eleven manufacturing facilities in Malaysia, Supermax has industrial plants dedicated exclusively to Brazil and eight distribution centers around the world.
With a modern Distribution Center certified by ANVISA in Good Practices of Storage and Distribution of Health Products with more than 5,300m2 of built area and storage capacity of more than 150 containers, Supermax Brazil has stock with immediate delivery, backed by the manufacturer Supermax Corporation Berhad of Malaysia.
The shipment of goods with automation by barcode reading provides accuracy and full traceability of the commercialized batches. The storage area has temperature, humidity and luminosity control, preserving the original characteristics of packaging and products.
Nice.Care to tell how many points gloves contributed to klci rise in year 2020? :)
Posted by myinvestor > Aug 20, 2021 8:25 PM | Report Abuse
AFTER the Philippines Stock Exchange Index, which is down 8.2% year-to-date, the FTSE Bursa Malaysia KLCI (FBM KLCI) is now the second worst-performing index in Asia this year with a year-to-date decline of 7.7%.
For foreign investors, who are likely using the US dollar as their base currency investing in the Malaysian bourse, their year-to-date return in dollar terms is even larger at negative 12.9%, as the Ringgit is down by 5.2% so far this year.
CLICK TO ENLARGE CLICK TO ENLARGE
One of the reasons for the underperformance of the local bourse is the relentless selling pressure that we have seen coming from foreign institutional shareholders.
In fact, based on data that has been compiled since 2014, net outflows were recorded in seven out of the last eight years. As can be seen from the chart, foreign flows to a large extent determine the performance of the FBM KLCI.
With the exception of last year, whereby the benchmark index rose 2.4%, despite the RM24.6bil net foreign outflows, the market has always gone the same direction as per foreign flows.
In 2020, despite the huge net foreign outflows, the 30-stock index provided positive returns on the back of the performance of the two main index-linked glove stocks, Top Glove Corporation and Hartalega Holdings, which accounted for 109 index points gain of
KUALA LUMPUR (Aug 20): The appointment of Datuk Seri Ismail Sabri Yaakob as the ninth Prime Minister is expected to instil more confidence from foreign investors in the local economy as the transition of power has been quite smooth.
Putra Business School associate professor Dr Abu Sofian Yaacob said, moreover, as the former Deputy Prime Minister, Ismail Sabri was not expected to come up with new policies but would probably enhance existing ones.
“The political scenario will quiet down for some time. This is the time for politicians to work together to alleviate the socio-economic problems especially as we celebrate Merdeka Day in a few days' time,” he told Bernama today.
In addition, he said a very high percentage of the population would have been vaccinated by next month and this would open up more business sectors.
“This ultimately would grow our economy and at the same time gain more foreign investors’ confidence. As more economic sectors open, people can now find jobs and thus reduce the social problems,” he added.
AstraZeneca Antibody Combo can save lives in ICU (game-changer)...USA also has monoclonal antibodies therapy ( used by Trump ) but difficult to Get and expensive.....
India First DNA vaccine will End Delta Variant there ( best news so far ) Given India has the biggest Vaccine Factory in the World....I think Delta will End in 2022 / 2023
yes delta will probaby end by 2023.By that time supermax woud have additional rm4-5b cash on top of its current rm3.7b. post pandemic supermax will still perform superbly!
ThePowerOfGlove you want supermax money, you have to support & defend supermax
Stanley ask you to tell me to carry his nuts and if he is happy he will drop some coins for me to pick up. No man, i just cut his Nuts and make "Char Siew". Last chance for him, change Auditor if no Qr results next week.
Facebook Najib. Di sebalik beberapa laporan media bahawa pasaran saham Malaysia menjunam teruk semalam, indeks Bursa Malaysia sebenarnya tidak bergerak begitu ketara semalam. Penurunan Bursa Malaysia sebanyak 2.21 point sebenarnya lebih rendah berbanding pasaran saham negara-negara jiran. Malah nilai Ringgit Malaysia naik semalam
RSS going to ban. Najib is monitoring the stock market performance.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
MoneyMakers
7,650 posts
Posted by MoneyMakers > 2021-08-20 17:41 |
Post removed.Why?