Selling waves continued to pummel small-cap counters and penny stocks on Bursa Malaysia, prompting some stockbroking firms to demand upfront cash payments for certain tumbling stocks. Four stocks hit their limit down, including Silver Ridge Holdings Bhd, Jentayu Sustainables Bhd (JSB), Widad Bhd, and Artroniq Bhd. Tanco Holdings Bhd also experienced a heavy sell-off, with its shares plunging by 17.5 sen or 26.72%. This persistent selling pressure has led to a jittery market sentiment, resulting in the FBM ACE Market Index suffering its biggest single-day drop in 18 months. The index has plummeted 11.1% over the past four days. While blue chips are not the primary targets of selling, some, such as YTL Corp Bhd and YTL Power Bhd, experienced a drop in share prices. However, analysts believe fundamentally sound blue chips will not be significantly impacted. The selldown is expected to continue for the next few trading days, affecting small-cap companies and penny stocks, while the FBM KLCI may stagnate for a while. Despite the immediate-term impact on market sentiment, analysts remain cautiously optimistic about the local market for the year.
Small-Cap Stocks Plunge on Bursa Malaysia; Market Sentiment Weighed Down
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