The stock market reacted negatively on the back of heightened political risk and the weakening ringgit, falling by nearly 1%.
The FTSE Bursa Malaysia KL Composite Index (FBM KLCI) closed 17.19 points lower at 1,717.05 points while the ringgit was sold down further, hitting a 16-year low of RM3.81 to the US dollar.
This follows damaging allegations made by the Wall Street Journal (WSJ) against Prime Minister Datuk Seri Najib Tun Razak.
“Malaysia is first and foremost a political market, so not surprisingly, politics are always the biggest risk for Malaysia. Markets do not like uncertainties. This is why the market is reacting this way. However, once the issue is resolved, the market will go up again,” said one fund manager who wasn’t particularly perturbed by yesterday’s plunge.
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The FTSE Bursa Malaysia KL Composite Index (FBM KLCI) closed 17.19 points lower at 1,717.05 points while the ringgit was sold down further, hitting a 16-year low of RM3.81 to the US dollar.
This follows damaging allegations made by the Wall Street Journal (WSJ) against Prime Minister Datuk Seri Najib Tun Razak.
“Malaysia is first and foremost a political market, so not surprisingly, politics are always the biggest risk for Malaysia. Markets do not like uncertainties. This is why the market is reacting this way. However, once the issue is resolved, the market will go up again,” said one fund manager who wasn’t particularly perturbed by yesterday’s plunge.
Click Here To Register For Free Trial Services OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
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