Local political uncertainty continues to plague stock market

For the past 2 days, Bursa ended its trading session lower as weak market sentiment continued to affect investors’ risk appetite

by S BIRRUNTHA / pic Muhd Amin Naharul

THE performance of Bursa Malaysia continued to show negative momentum on the third day, following the absence of new indicators with the new government still failing to be formed.

For the past two days, Bursa Malaysia ended its trading session lower as weak market sentiment continued to affect investors’ risk appetite.

The local bourse was down at midday as cautious sentiment continued to rule the market, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closing the morning session 1.36 points lower at 1,439.93, down from 1,441.29 on Tuesday (Nov 22).

The market’s leading indicator opened 9.39 points down at 1,431.90.

Losers outnumbered gainers 376 to 312 on the broader market, while 345 counters remained unchanged, 1,268 were not traded, and 84 others were suspended.

Yesterday, shares on Bursa Malaysia saw a loss of RM7.32 billion in total market capitalisation due to the sudden reaction of investors to the results of the 15th General Election (GE15) which is still deadlocked.

Sectors that experienced massive selling on Monday were consumer products, banking, gambling and liquor manufacturers.

In GE15, no political party or coalition contested managed to win a majority of 112 seats causing Parliament to hang. 

The results in the 220 parliamentary seats show that Pakatan Harapan won 82 seats followed by Perikatan Nasional (PN) (73 seats), BN (30 seats) while Gabungan Parti Sarawak (GPS) 23 seats, Gabungan Rakyat Sabah (GRS) six seats, Parti Warisan three seats, Independent candidates with two seats and the Democratic Prosperity Party of Malaysia (KDM) and Parti Bangsa Malaysia (PBM) with one seat each. 

At the time of writing, no government has been formed as no coalition has managed to reach a consensus to form a new government.

The Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah has called for a special meeting of fellow rulers at Istana Negara tomorrow, which indicates that it is unlikely to have a decision today.