August 16, 2021

What is the Story of Bursa Trading After the Prime Minister Resigns?

 Bursa Malaysia opened lower today as investors awaited further stories on the political imbroglio that is currently looming in the country.

At 9.01am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index declined 8.03 points to 1,497.08 from 1,505.11 at the close of the market on Friday.

It is rumored that at this time, Prime Minister Tan Sri Muhyiddin has arrived in Perdana Putra to attend a special Cabinet meeting.

This is because there are reports saying that Muhyiddin will resign today after losing the majority of the deck due to disputes between the ruling coalition.

According to Inter-Pacific Research Sdn Bhd, the escalating political instability and the rising daily Covid-19 cases will continue to weigh on short-term market sentiment.

In addition, figures for retail sales, industrial production and urban investment were seen to show a modest decline in activity in China in July based on readings published in the Asian session this morning.

Research firms say that the market is going to be more vigilant and most investors will be looking at and waiting for data capable of re-supporting the market to soar.

The impact of the current political turmoil has also prompted Genetec Technology, Petronas Gas, Malaysia Airports Holdings, Hartalega and Fraser & Neave Holding to experience falling prices.