BURSA Malaysia continues to extend its downtrend at the opening today following the collapse of the Pakatan Harapan government yesterday. 

As at 9.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 7.46 points to 1,482.60 from yesterday’s sell-off when RM43.5 billion of market capitalisation was wiped out.

Yesterday, the FBM KLCI index lost 2.68% or 41.14 points at 1490.06 points, the lowest since December 2011.

This morning, losers still have an upper hand compared with gainers at 418 to 70 with 140 counters unchanged, 1,375 untraded and 21 others suspended. 

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

The political turmoil caused panic selling yesterday with 1,015 losers and 138 gainers while 222 counters traded unchanged.

A total of 4.03 billion shares worth RM3.91 billion were traded yesterday.

Fund managers told The Edge Financial Daily that the political situation only dampened the already weak market sentiment because of the Covid-19 outbreak.

Only four out of the 30 KLCI component counters led by Top Glove Corp Bhd and Hartalega Bhd were trending in positive territories.

Brewery counters Carlsberg Malaysia Bhd and Heineken Malaysia Bhd were the biggest losers.

Philip Capital Investment Malaysia Bhd chief investment officer Ang Kok Heng told the publication that investors dislike uncertainties.

Whether Dr Mahathir Mohamad returns as PM or Anwar Ibrahim ascending as the next one remains as an uncertainty. There are also concerns that the parties in Sabah and Sarawak may swing the balance.

A weaker ringgit also caused the selling.

TA Investment Management Bhd chief investment officer Choo Swee Kee said market conditions are fluid and the political uncertainty could swing it either way. – February 25, 2020.