The FBMKLCI ended the Q2 2021 lower by 2.60%. The losses in the quarter were broad-based as the number of domestic COVID-19 cases rose steadily. Bursa Malaysia’s heavyweight glove makers led the local benchmark index lower amid progress in vaccination programmes around the world. Additionally, glove stocks were also downgraded by analysts as average selling prices for gloves have likely peaked. Meanwhile, glove maker Supermax Corp was removed as an FBMKLCI component in June 2021, and replaced by Mr DIY Group. Plantation counters also fell significantly, despite only a minor decline in the price of crude palm oil as concerns surrounding labour shortage, adverse weather conditions as well as ESG practices remained.

All sectors except Transportation ended lower. The Transportation (+7.48%) sector emerged as the sole gainer largely due to a more than 80% rise in MMC Corp’s stock price throughout Q2 2021 as the company received a privatisation proposal from Tan Sri Syed Mokhtar Albukhary. In contrast, the Energy (-14.60%) sector underperformed despite an uptrend in the global crude oil prices as the sector was weighed down by heavy losses in Serba Dinamik stock due to its unresolved audit issues.

Across the market segments, Mid 70 (-6.43%), Small Cap (-7.92%) and the ACE Market (-30.96%) underperformed, relative to the FBMKLCI (-2.60%) and Fledgling (-2.04%) indices. In terms of trading activity, the daily average volume traded declined by 23.57% q-o-q to 6.57 billion shares while the average value traded per day decreased by 25.36% q-o-q to RM3.86 billion in Q2 2021.