The benchmark FBMKLCI Index ended Q3 2021 marginally higher by 0.34%. The benchmark index staged a rebound in August amid a confluence of domestic factors including progress in vaccination efforts, gradual reopening of various sectors of the economy as well as stability in Malaysian politics.

Nonetheless, the FBMKLCI subsequently pared gains in September 2021, largely due to the losses in Top Glove and Hartalega. Both glovemakers ended Q3 2021 in the negative territory following dimmer earnings outlooks and favourable vaccination progress around the world. Analysts downgraded ratings for the glove sector, citing lower average selling prices, higher compliance costs, and heightened competition. Notably, in Q3 2021, Press Metal emerged among the top gainers on the FBMKLCI as aluminium prices climbed to their highest level in more than a decade due to the low supply. In contrast, Dialog Group underperformed in Q3 2021 after the oil and gas support services provider reported its first decline in full-year net profit in 16 years.

On the broader market, sectors were mixed. Technology (+20.27%) outperformed on the back of sustained demand for semiconductor chips as well as accelerated digitalisation efforts and technology adoption. The sector is also perceived to be a key beneficiary of the 12th Malaysia Plan as most initiatives outlined in the national development plan involve technology as a key enabler. Meanwhile, Healthcare (-11.70%) underperformed amid the losses recorded in glove manufacturers.

Across the market segments, larger and small caps (Mid 70: +3.47%, Small Cap: +4.25%) as well as lower liners (Fledgling: +2.71%; ACE: +3.02%), mirrored gains across their blue-chip counterparts (FBMKLCI: +0.34%). In terms of trading activity, the daily average volume declined by 28.53% q-o-q to 4.70 billion shares, while the average value traded per day decreased by 21.63% q-o-q to RM3.02 billion in Q3 2021.