The FTSE Bursa Malaysia KLCI saw its steepest fall in March. — Bernama pic
This was due to the rapid spread of Covid-19 across the world, wreaking havoc in its wake, with declining oil prices, weak consumer data, and closure of international borders which leaves cyclical stocks especially airlines, automobiles and consumer chains under heavy pressure. This was driven by virus containment success and the decline in unemployment data as the movement restrictions were gradually lifted, as businesses resumed operations and started embracing the new normal.
On the overall market, the healthcare index, on a year-to-date performance, increased more than 200 per cent to become the best performing index for the year. While the healthcare and technology sectors continue to record gains, the energy index has been under pressure until air travel returns to normal.
The Finance Ministry, in its 2021 economic outlook, has forecast that Malaysia’s gross domestic product will expand between 6.5 per cent and 7.5 per cent in 2021 after a contraction of 4.5 per cent this year.