In Q3 2022, the FBMKLCI Index extended losses, declining by 3.43% to 1,394.63 points. Despite Malaysia’s strong Q2 2022 GDP growth rate and positive Q2 2022 corporate earnings season, earlier gains in the benchmark index were erased in September 2022, tracking decreasing performance of global markets. Investors adopted a risk-off approach as central banks around the world accelerated monetary policy tightening through aggressive interest rate hikes to control high inflation. Additionally, rating agencies and international organisations downgraded global gross domestic product (GDP) growth forecasts with backdrop of tighter financial conditions and concerns surrounding potential recession.

Among the FBMKLCI constituents, losses were led by Press Metal Aluminium and glovemakers. Share price of Press Metal Aluminium fell by almost 15% during Q3 2022 due to weaker global aluminium prices as China, a major consumer of metals, continued to exhibit a slowdown in its economic activity. In addition, share prices of glovemakers, Hartalega and Top Glove declined in the range of 40% - 45% after the latter reported its first quarterly loss since listing on Bursa Malaysia. Overcapacity situation, falling average selling prices and weaker demand for personal protective equipment globally impacted financial performance of glovemakers. Meanwhile, buying support for banking stocks such as CIMB (+6.1%) and Maybank (+3.1%) amid rising interest rate environment, capped the losses of the benchmark index.

All market sectors ended in the negative territory with healthcare (-11.89%) underperforming led by selling activity on glovemakers. Similarly, all market indices (Mid 70: -2.33%, Small Cap: -3.63%, Fledgling: -5.53%, ACE: -1.97%) declined, reflecting a broad-based weaker performance in the local bourse. In terms of trading activity, the daily average volume traded declined by 20.90% q-o-q to 2.45 billion shares while average value traded per day fell by 21.62% q-o-q to RM1.75 billion.