Momentum of banking stocks still intact
Cheah Chor Sooi | 09 Feb 2018 00:30
CIMB Group fell 5.2% during the market rout on Feb 5 and 6
Bursa Malaysia’s Finance index rallied 0.46% or 82.43 points on Feb 2 to close at a historical high of 17,979.58. Correspondingly, the FBM KLCI inched up 0.1% or 1.9 points to 1,870.48.

However, the index, which tracks 30 financial sector stocks including banks and insurers, reversed its uptrend following two days of sell-off on Feb 5 and 6 as major global markets reacted to the Feb 2 overnight Wall Street plunge.

After having plummeted to an intra-day low of 17,075.35 to close at 17,360.27 on Feb 6, the Finance index recovered 1.74% or 303.33 points to 17,663.6 at the close of trading on Feb 8.

Although banking stocks were impacted by the contagion effect of the Wall Street market turbulence, their decline was very much in tandem with the broad-based market fall with the KLCI being bashed to an intra-day low of 1,795.85 before paring losses to close at 1,812.45 on Feb 6.