KUALA LUMPUR (Aug 5): The selloff across Bursa Malaysia on Monday amid recession fears in the US saw billion-ringgit companies by market capitalisation shed as much as 16% in value on a single trading day.

This came as investors took profit in many of the largest decliners, which had in fact experienced sharp rallies in recent months on positive outlook, particularly in sectors like property and construction.

Across Bursa Malaysia, daily trading volume surged to 9.26 billion units, the highest since March 2021, while trading value surged to RM7.97 billion, the highest since November 2020.

Among companies with market capitalisations exceeding RM10 billion, decliners were led by YTL Power International Bhd (KL:YTLPOWR), which dropped 11.36% to RM3.98, and Sunway Bhd (KL:SUNWAY), which fell 10.17% to RM3.62.

They were followed by IOI Properties Group Bhd (KL:IOIPG), which fell 9.76% to close at RM1.85, and YTL Corp Bhd (KL:YTL), which dropped 9.23% to RM2.95.

Those with market values of between RM1 billion and RM10 billion saw steeper declines, led by Sime Darby Property Bhd (KL:SIMEPROP), whose share price plummeted 16.11% to settle at RM1.25.

Construction outfit Malaysian Resources Corp Bhd (KL:MRCB) was down 15.65% to close at 48.5 sen, while Johor property proxy UEM Sunrise Bhd (KL:UEMS) declined 15.57% to finish at 89.5 sen.

For companies with market capitalisations above RM500 million, Southern Cable Group Bhd (KL:SCGBHD) experienced the largest single-day drop on Monday, with its share price falling 16.76% to 72 sen. Kobay Technology Bhd (KL:KOBAY) also saw a significant decline of 16.75% to RM1.74, while Cape EMS Bhd (KL:CEB) decreased by 16.3% to 56.5 sen.

In the category of companies with market capitalisations below RM500 million, Widad Group Bhd (KL:WIDAD) saw its share price drop 20% to four sen, and Yong Tai Bhd (KL:YONGTAI) fell 19.67% to 24.5 sen.

Looking at their year-to-date (YTD) share price performance, many of the decliners remain in positive territory. These include YTL Power (up 56.69% YTD), Sunway (up 75.73% YTD), Gamuda Bhd (KL:GAMUDA) (up 51.42% YTD), Sime Darby Property (up 100% YTD), and Mah Sing Group Bhd (KL:MAHSING) (up 80.72% YTD).

On the other hand, small-cap companies saw minute gains, although many were still in the red since the start of the year. Top gainers were led by ABM Fujiya Bhd (KL:AFUJIYA), which only went up by two sen or 6.9% to 31 sen, for a market capitalisation of RM63.5 million. However, YTD, the counter is down by six sen or 16.2%.

This was followed by DKLS Industries Bhd (KL:DKLS), which also gained two sen or 1.1% to RM1.92, bringing the group's market capitalisation to RM185.48 million. However, DKLS has similarly been on a downtrend YTD, having lost nine sen, or 4.5%.

Coming in as the third top gainer on Bursa Malaysia on Monday was PLB Engineering Bhd (KL:PLB), which also saw an increase of two sen, or 1.8%, to RM1.11, as its market capitalisation rose to RM123.61 million. PLB has been on an uptrend YTD, having gained eight sen, or 7.8%.

ACE Index erases 2024 gains

The selloff in Malaysian equities tracked the wider Asian markets, which continued to tumble on fears over the health of the US economy.

The FBM KLCI closed 4.63% lower for its worst one-day decline since March 2020 during the Covid-19 pandemic. The benchmark index is still up 5.62% YTD.

Meanwhile, the FBM Small Cap Index fell 8.25%, although it is still up 5.35% YTD. The FBM ACE Index, notably, dropped 9.42%, which erased this year's gain for a YTD decline of 6.89%.

Sectors that declined the most on Bursa Malaysia were property (down 9.74%), technology (down 9.12%), construction (down 9%), energy (down 8.23%), and industrial products and services (down 7.75%).

The market's sharp decline on Monday was in line with regional markets, led by a 12.4% rout in the Nikkei 225, followed by South Korea's Kospi (down 8.77%), and Taiwan's Taiex Index (down 8.35%). Investors were already disposing of risk assets in the past week, following the Bank of Japan's surprise monetary tightening last Wednesday (July 31).