Malaysia stocks jump upon Anwar’s appointment as 10th PM

by S BIRRUNTHA / pic TMR File

THE appointment of Datuk Seri Anwar Ibrahim as Malaysia’s 10th Prime Minister after four days of intense political jostling has received a positive and favourable reaction from the stock market.

Bursa Malaysia ended the morning session on a strong note, with the main index rising 2% following continued buying momentum on improved market sentiment both locally and externally.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 28.94 points to 1,471.44 from 1,443.5 on Wednesday (Nov 23), following the announcement from Istana Negara. At the time of writing (3.40pm), the FBM KLCI had gained 49.99 points to 1495.72.

Meanwhile, Malaysia’s market leading indicator opened higher by 7.18 points to 1,450.68. Overall market sentiment was positive with gainers outnumbering losers by 699 to 201, while 312 counters were unchanged, 1,121 were untraded and 84 others were suspended.

“Incoming Prime Minister Anwar Ibrahim’s minority-led government means it will take little effort for opponents to disrupt his legislative agenda or topple his administration. The political fragmentation sustains uncertainty and will likely limit what gets done in parliament,” according to an immediate comment by Bloomberg Economics.

Anwar, who is the chairman of Pakatan Harapan (PH), will be sworn in at 5pm today (Nov 24), ending a 24-year wait. 

According to Istana Negara, the Yang di-Pertuan Agong took the decision after consulting with other rulers during a special gathering of the nation’s nine state monarchs.