THE FBM KLCI is posting a slow but steady rise, after it fell sharply early today when the market resumed trade after the long post-election holiday.

At 11.35am, the FBM KLCI rose 7.25 points to 1,853.76. The index opened at 1,846.51 points before it dipped by 44.30 points at 9.15am. But by 9.30am, there was a clear sign of recovery as the KLCI climbed back by 13 points.

The 14th general election last Wednesday resulted in an unprecedented change of government after 61 years, leaving many investors feeling jittery.

However, analysts have said any initial sell-off on the local bourse as the market opened today is expected to be cushioned by optimism over the prospects of the Malaysian economy under a new administration led by Prime Minister Dr Mahathir Mohamad.

In a statement yesterday, the Employees Provident Fund (EPF) expressed optimism about the long-term prospects of the Malaysian economy.

“EPF anticipates that any potential short-term market dips will provide opportunities for further investments in domestic markets,” the statement said.

Much of this optimism hinges on Dr Mahathir’s pledge to keep the government business-friendly and that “there is no cause to devalue the ringgit”, reported The Edge.

His setting up of the Council of Elders on Saturday has also buoyed investor confidence, analysts told the paper.

Today, the market’s top losers included Barisan Nasional-linked stocks such as George Kent (M) Bhd, Gamuda Bhd, Malaysia Airports Holdings Bhd, My E.G. Services Bhd, Axiata Group Bhd, CIMB Group Holdings Bhd, Lingkaran Trans Kota Holdings Bhd, Cahya Mata Sarawak Bhd, Kuala Lumpur Kepong Bhd, and Gabungan AQRS Bhd.

This was offset by gains in stocks owned by personalities linked to Pakatan Harapan.

As of 10.30am, Nestle and BAT were the top gainers, from RM6 to RM141.60 for Nestle while BAT gained from RM3.80 to RM26.50.

PPB Group – founded by billionaire Robert Kuok – jumped from 84 sen to RM20.

Kuok was among those appointed to the council to advise the government. – May 14, 2018.