Bursa Malaysia’s sectors were mixed with Technology (+19.64%) sector outperforming as demand for semiconductor chips outpaced supply as a result of accelerated digitalisation amid the pandemic. Telecommunications and Media (+8.63%) emerged as the second best performing sector led by Telekom Malaysia and TIME dotCom as both companies reported positive earnings results. In addition, there were several positive developments within the domestic telecommunications sector such as the launch of the Malaysia Digital Economy Blueprint as well as formation of a special purpose vehicle to oversee the deployment of 5G infrastructure and network nationwide. On the other hand, Healthcare (-19.07%) underperformed led by glove makers as the progress of vaccination drive posed uncertainties on future demand for gloves. The US Customs and Border Protection’s decision to seize disposable gloves produced in Malaysia by Top Glove due to forced labour allegations added to the downbeat mood of the glove sector. Similarly, the environmental, social and governance (ESG) issues surrounding the domestic Plantation sector (-3.99%), resulted in it being the second worst performer in Q1 2021 under review.

On the earnings front, the FBM100’s Q4 2020 aggregate earnings contraction eased to -5.49% year-on-year (y-o-y) (Q3 2020: -18.99%). The slower decline in earnings was attributed to recovery in business activities as well as higher commodity prices. Among the FBM100 components, the number of companies with higher earnings outnumbered those with earnings declines due mainly to stronger earnings from automakers, chemicals, glove makers, plantation and technology players.

Across the market segments, Small Cap (+7.61%), Fledgling (+6.97%) and Mid 70 (+2.18%) outperformed the FBMKLCI (-3.30%) and ACE Market (-6.23%). In terms of trading activity, the daily average volume traded declined by 5.77% q-o-q to 8.60 billion shares while average value traded per day grew by 3.72% q-o-q to RM5.17 billion in Q1 2021.