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KUALA LUMPUR (Dec 31): Although the battle against the Covid-19 pandemic is still ongoing, Bursa Malaysia certainly has good reason to celebrate 2020.
First, the local market has outperformed neighboring exchanges with its benchmark, ending the year in the positive zone, with the exception of Vietnam. The FBM KLCI gained 3.5% year-to-date (YTD) to hit 1,644.41 points on December 30, while Vietnam’s VNINDEX is up 14.2% to date. It is worth noting that the KLCI FBM had decreased for two consecutive years since 2017.
In contrast, Singapore’s Straits Times Index fell 11% to date, followed by the Philippines PSE Composite Index -8.6%, Thailand’s SET Index -8.3% and Indonesia’s Jakarta Composite Index – 5.1%.
Stock prices rose in the broader market, as reflected by higher gains in the Bursa Malaysia Small Cap Index, which was up 10.09%, while the FTSE Bursa Malaysia ACE Index, which passed the 10,000 mark. , has soared 103.5% to date.
The market capitalization of all publicly traded entities has soared to RM104.74 billion compared to the end of 2019, according to Bloomberg data.
Second, the stock market should also encourage the return of retail investors who have been absent for more than a decade, if not longer. Given the surge in retail interest, the exchange’s daily trading volume soared to an all-time high of 27.8 billion in August compared to last year’s high of 2.51 billion shares.
Bursa’s total trading volume increased to 1.81 trillion as of December 30, nearly triple the 2019 annual volume of 613.59 billion. This speaks well for Bursa Malaysia Bhd’s earnings.
Manufacturers of rubber gloves, counters related to semiconductors, and vaccine distributors – these are the main topics at play in 2020.
The Edge is taking a closer look at this year’s top winners and losers, which have been grouped based on market capitalization.
Super Large Cap (Market Cap Over RM10 Billion)
There are 37 companies in this category. Supermax Corp Bhd and Kossan Rubber Industries Bhd weren’t in this category last year. Likewise, neither was the recently listed Mr DIY Group (M) Bhd.
The top four performers are the big four manufacturers of rubber gloves, namely Supermax (+ 802% YTD), Top Glove Corp Bhd (+ 291% YTD), Kossan (+ 130% YTD) and Hartalega Holdings Bhd (+ 120% YTD). They would have posted bigger gains this year had it not been for the news about the Covid-19 vaccine launch more recently.
Together they have earned RM 79.42 billion in market capitalization, which is equivalent to 76% of the total market capitalization increases of all stocks listed on Bursa Malaysia.
Mr. DIY soared 98% in less than two months from its initial public offering price of RM1.60 to close at RM3.17. Press Metal Aluminum Holdings Bhd is another star player with a gain of 81.7% to close at RM8.50 amid the rise in the price of aluminum in the international metal market.
Among banks, Public Bank Bhd, which recently proposed a four-for-one bond issue, recouped all its losses in the first quarter of 2020. Bank shares rose 6.4% YTD to close at RM20.70. Public Bank’s comeback is remarkable, especially since it fell to the low of RM12.66 this year in March.
The other bank that posted a profit this year was Hong Leong Bank Bhd (+ 7.4%).
The main losers were businesses that were affected by the lockdown and cross-border travel restrictions due to Covid-19, particularly tourism-related businesses. Genting Bhd fell 25% to date and Genting Malaysia Bhd (-17.3%).
National utilities giant Tenaga Nasional Bhd was the second-furthest behind, falling 21% amid concerns about rising unpaid electricity bills and slowing power consumption.
Large cap (RM1-10 billion)
For the large-cap space, office furniture maker Euro Holdings Bhd leads the winners and is up 5.064% to date to close at RM 2.88 from just 5.5 sen. This company, whose stock price had never exceeded 15 sen since its IPO in 2005 until the end of March this year, saw the emergence of a new, larger shareholder, SPA Furniture (M) Sdn Bhd, in February this year .
It is followed by rubber glove manufacturers Careplus Group Bhd (+ 1,213%), Rubberex Corp (M) Bhd (+ 672%) and Comfort Gloves Bhd (+ 282%).
In line with the rebound in the technology sector, semiconductor-related company UWC Bhd grew 365% to close at RM9.90, while Greatech Technology Bhd was up 278% and JF Technology Bhd 216%.
Other semiconductor-related companies that have made significant gains include Unisem (M) Bhd (+ 178%), Malaysia Pacific Industries Bhd (+ 116%), Mi Technovation Bhd (+ 107%), ViTrox Corp Bhd (+ 87%), Pentamaster Corp Bhd (+ 66%) and Inari Amertron Bhd (+ 63%).
Pharmaceutical companies Duopharma Biotech Bhd and Pharmaniaga Bhd also saw stellar growth of 143% and 144% respectively.
Oil and gas (O&G) accountants dominate the list of biggest losers, namely Velesto Energy Bhd (-63.2%), Sapura Energy Bhd (-53.7%) and Dayang Enterprise Holdings Bhd (-52.2 %).
This is in contrast to crude oil refineries Hengyuan Refining Co Bhd, which was up 33.6% and Petron Malaysia Refining and Marketing Bhd, which was up 2.19%.
Mid Cap (RM500 Million to RM1 Billion)
In 2020, companies’ stock prices could simply skyrocket as they announce their plans to jump on the vaccine distribution train. The share prices of 15 companies in this segment have more than doubled.
Other notable accountants are GETS Global Bhd (+ 1,181% YTD), a losing bus operator that has ventured into the rubber glove business, and Hong Seng Consolidated Bhd (+ 692% YTD), also a new entrant. in the manufacture of rubber gloves. industry. Meanwhile, HLT Global Bhd, which specializes in the production of glove dipping lines for manufacturers, grew 522%.
AT Systematization Bhd, which is likely to be the most traded stock of 2020 with a daily trading volume of over 1 billion shares, gained 363%, it has also put its hat on the rubber ring.
The main losers in this category are also O&G companies, namely Malaysia Marine and Heavy Engineering Holdings Bhd (-48%) and KNM Group Bhd (-44%).
Small cap (below RM500 million)
A similar trend was observed among small caps. INIX Technologies Holdings Bhd (+ 500% YTD), which is in the midst of setting up a rubber glove manufacturing plant, is the top winner in this category.
Solution Group Bhd, which has announced vaccine-related projects, tops the list and grew 1,132% to date. Likewise, Bintai Kinden Corp Bhd and Ho Wah Genting Bhd grew 435% and 495% respectively.
Other notable companies that have announced projects related to health are MQ Technology Bhd (+ 460%), which has announced its commitment to the manufacture of personal protective equipment, and LKL International Bhd (+ 567%), which has been awarded a supply of gloves. contract from a company based in China.
Vivocom Intl Holdings Bhd, which intends to acquire real estate development assets from its main shareholder, soared 463%.
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