What led to the significant increase in trading volume and value?

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Trading volume and value jumped after Covid-19 and MCO fears intensified in Selangor

Trading volume on Bursa Malaysia surged to 6.60 billion units worth RM3.80 billion on Monday, up sharply from last Wednesday’s 2.59 billion units worth RM1.92 billion. Market sentiment turned cautious and the broader market ended broadly lower, with investors reacting to fears of a full-scale movement control order (MCO) in Selangor if Covid-19 infections were not curbed. Malaysia recorded 4,446 new Covid-19 infections that day, with Selangor accounting for 1,650 cases, the highest in the country.
Cautious sentiment linked to possible full-scale MCO in Selangor
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said overall market sentiment was dampened by the possibility of a full-scale MCO in Selangor if infections were not curbed. This kind of risk re-pricing typically coincides with heavier trading as investors adjust positions when policy or restrictions become a near-term possibility. The market also ended with negative breadth, with losers outnumbering gainers 1,061 to 195.
Covid-19 case surge in Selangor added pressure to risk appetite
Health Minister Datuk Seri Dr Adham Baba said Selangor may return to a full MCO like the one imposed in March last year if cases continued to surge. On Monday, Malaysia logged 4,446 new infections, including 1,650 in Selangor, which was the highest new cases among states. That concentration of new cases in Selangor fed directly into the MCO concern highlighted by market commentary.
Index constituents dragged the market as investors priced in downside risks
Among the 30 FBM KLCI constituents, Genting Bhd, Genting Malaysia Bhd and Supermax were cited as stocks dragging Bursa Malaysia with losses of more than 2.0 per cent each. Genting Bhd fell 11 sen to RM4.69, Genting Malaysia dropped six sen to RM2.71, and Supermax slipped 13 sen to RM4.64. With the FBM Emas Index down 51.82 points to 11,511.22 and the FBMT 100 Index down 28.69 points to 11,205.28, the weak tape aligned with the cautious mood driving more active trading.
Active trading occurred alongside broader market weakness and sector divergence
The day’s trading activity was not confined to the KLCI alone: Main Market volume rose to 3.79 billion shares worth RM3.17 billion from last Wednesday’s 1.54 billion shares worth RM1.65 billion. ACE Market volume also jumped to 2.50 billion shares worth RM600.33 million from 863.09 million shares worth RM257.38 million previously. Even as the Plantation Index fell 127.03 points to 6,946.75, the Financial Services Index rose 129.26 points to 14,979.80, reflecting shifting preferences as investors traded more aggressively across sectors.

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What led to the significant increase in trading volume and value?

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