KUALA LUMPUR: Political turmoil brought about by the collapse of the Pakatan Harapan government has placed further strain on Malaysia’s economy, as the country’s stock exchange closed at its lowest point since late 2010 on Monday.
Economists say that political uncertainty brought about by the shock resignation of Prime Minister Tun Dr Mahathir Mohamad today could deter investors looking for stability at a time when the global Covid-19 coronavirus outbreak and trade wars are hurting growth.
Bursa Malaysia’s benchmark index was down as much as 45 points or 2.85 per cent on Monday, to end its 12-year reign as the world’s longest stock market bull run.
Prior to today, the FBM KLCI was already down more than 20 per cent from its 2018 peak.
The index, which is made up of 30 of Malaysia’s largest stocks – such as Tenaga Nasional Bhd, Malayan Banking Bhd and Public Bank Bhd – settled the day 2.7 per cent lower at 1,489.99 points.
The FBM KLCI fell to as low as 1,486.71, the lowest since Nov 23, 2010, immediately after news reports confirmed that Dr Mahathir had submitted his letter of resignation to the Yang di-Pertuan Agong.