KUALA LUMPUR (Aug 2): Risk-off moves across major markets after disappointing US manufacturing economic data sparked broad selloffs in the Malaysian stock market on Friday.

By the closing bell, more than 1,300 stocks on Bursa Malaysia fell and only 155 rose. The benchmark FBM KLCI lost 13.2 points or 0.81% to 1,611.05 with 24 out of 30 component stocks in the red.

Friday's session saw steep falls in export-trade sensitive Asian equities, where Japan’s Nikkei fell 5.7%, followed by Taiwan’s Taiex, which tumbled 4.4% and South Korea's Kospi, which sank 3.6%.

Overnight, the tech-heavy US Nasdaq Composite fell 2.3% and the S&P 500 fell 1.37%, while the small-cap Russell 2000 fell 3.03% on fears of economic slowdown. Wall Street’s “fear gauge” — the VIX — hit its highest since April, as investors scrambled for protection.

Investors have turned wary and cautious following steep falls among Japanese and China equities, and would likely stay “unsettled” heading into the weekend amid the still low buying interest, especially from retail investors, Inter-Pacific Research said in a note.

“Although the odds of the US trimming interest rates in September have risen, the FBM KLCI continues to dither due to the already toppish conditions” from the strong year-to-date gains, the research house said.

By the end of Friday, all sectors on Bursa Malaysia declined with the largest losers being construction, down 5%; technology, down 4.6%; and property, down 3.8%, extending their declines from the morning session.

The construction sector, in particular, has risen for the third consecutive month and was the biggest gainer in July, with a 14.4% month-on-month gain, out of 13 indices on Bursa Malaysia, thanks to news flows on data centre and infrastructure projects.

Technology stocks, meanwhile, are also under pressure from the strengthening ringgit that is now approaching its strongest level in nearly one year against the US dollar.

“A stronger ringgit is naturally negative” for exporters of technology, oil and gas, and some other manufacturing companies, which largely price their products and services in the greenback, said AmInvestment Bank.

The local currency is now at 4.489 against the US dollar, gaining about 5% since July 1, and making it one of the best-performing major currencies in Asia so far this year. The ringgit is also the only Asean currency that has gained year-to-date at 2.3%.  

At Friday’s market closing, construction stocks that traded down with large turnover included WCT Holdings Bhd (KL:WCT) — down 15 sen or 11.8% to RM1.12; Eversendai Corp Bhd (KL:SENDAI) — down six sen or 9.7% to 55.5 sen; Sunway Construction Group Bhd (KL:SUNCON) — down 45 sen or 9.6% to RM4.25; IJM Corp Bhd (KL:IJM) — down 26 sen or 7.5% to RM3.23, and Ekovest Bhd (KL:EKOVEST) — down 1.5 sen or 3.4% to 42.5 sen.

The largest tech laggards included JCY International Bhd (KL:JCY) — down six sen or 8.9% to 61.5 sen; MI Technovation Bhd (KL:MI) — down 18 sen or 7.6% to RM2.18; Vitrox Corp Bhd (KL:VITROX) — down 25 sen or 6.2% to RM3.78; Pentamaster Corp Bhd (KL:PENTA) — down 29 sen or 5.9% to RM4.61; and Notion VTEC Bhd (KL:NOTION) — down 12 sen or 5.6% to RM2.03.

The top losing property stocks included SP Setia Bhd (KL:SPSETIA) — down 16 sen or 10% to RM1.44; Iskandar Waterfront City Bhd (KL:IWCITY) — down 5.5 sen or 7.8% to 65 sen; LBS Bina Group Bhd(KL:LBS) — down 5 sen or 6.9% to 67 sen; Mah Sing Group Bhd (KL:MAHSING) — down 11 sen or 5.9% to RM1.74; and KSL Holdings Bhd (KL:KSL) — down 10 sen or 5.2% to RM1.83.

Across the bourse, most actively traded stocks included Hubline Bhd (KL:HUBLINE), Velesto Energy Bhd (KL:VELESTO), Ta Win Holdings Bhd (KL:TAWIN), MyEG Services Bhd (KL:MYEG), Top Glove Corp Bhd (KL:TOPGLOV) and WCT Holdings Bhd (KL:WCT).

Volume was 5.16 billion shares, 9.6% higher than its one-month average of 4.72 billion shares. Turnover was higher at RM3.98 billion against a one-month average of RM3.49 billion.