Bursa Malaysia opens lower on political uncertainties


By Bernama - February 25, 2020 @ 10:19am

KUALA LUMPUR: Shares on Bursa Malaysia continues to extend its downtrend at the opening today, amid possible realignment among the country’s political forces following the collapse of the Pakatan Harapan-led government.

As at 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 7.46 points to 1,482.60 from yesterday’s sell-off which saw the index losing 2.68 per cent or 41.14 points at 1490.06 points

On the broader market, losers still have an upper hand compared to gainers 418 to 70 with 140 counters unchanged, 1,375 untraded and 21 others suspended.

Turnover amounted to 179.77 million shares worth RM110.76 million.

Despite the re-appointment of Tun Dr Mahathir Mohamad as the country’s interim Prime Minister, the absence of the entire cabinet according to an analyst, as well as the fate of the stimulus package to address the economic impact of COVID-19, remained a major concern for investors.

“The market has reached a new low since 2011, and with the prevailing local political concerns, investors might take a step back from the local bourse, until the dust settles,” she said.

Meanwhile, MIDF in its Economic Brief note today said that on a flip side, it opined that Malaysia would have new leadership soon and not through a snap election.

“At this juncture, the focus is to protect the economy from the impacts of COVID-19 and global trade war. We expect the new government to unveil a stimulus package in the range of RM10 to 15 billion.

“As of 2019, federal government debt to GDP ratio is 52.5 per cent. Hence, the maximum amount can the stimulus package be is RM37.8 billion amid 55 per cent government debt to GDP ratio rule,” it said.

Investors continued to exit bluechip index with Petronas-related counters saw a declined.

Petronas Chemicals shed 11 sen to RM6.25, MISC drops 13 sen to RM7.29, Petronas Gas erased 24 sen to RM16.26 and Petronas Dagangan slipped 30 sen to RM21.30.

Consumer products related counters remained to be the top loser with Nestle declining 70 sen to RM141.70, F&N declined 50 sen to RM29.80, Heineken slid RM1.24 to RM27.12 and Carlsberg shrank RM1.20 to RM33.76.

Construction index meanwhile erased 1.09 per cent, as uncertainties over the revived and newly announced projects are left hang in the balance, combined with the impact of ongoing COVID-19 concerns.

On the index board, the FBM Emas Index slipped 68.69 points to 10,577.40, the FBMT 100 Index declined 65.14 points to 10,373.23 and the FBM Ace shed 89.76 points to 5,558.38.

The FBM Emas Shariah Index gave up 80.85 points to 11,244.12 and the FBM 70 dipped 136.47 points to 13,264.74.

Sector-wise, the Industrial Products and Services Index eased 1.95 points to 141.03, the Financial Services Index shed 50.60 points to 14,271.02 and the Plantation Index erased 60.17 points to 6,855.37.-- Bernama