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Political shake-up roils stock market, KLCI slumps 2.5%

24 Feb 2020 / 13:14 H.

PETALING JAYA: The speculation over the future of Pakatan Harapan following political manoeuvring that unfolded yesterday has shaken the market today, with the benchmark KLCI shedding nearly 2% to open at 1,501.47 points, from its close of 1,531.20 points last Friday.

At the noon break, the KLCI tumbled 38.94 points or 2.54% to 1,492.26 points.

The ringgit also weakened 0.6% to 4.2165 against the greenback.

In its market report, Rakuten Trade Research said the unfolding political situation is expected to dominate trading patterns today.

“As the situation remains sketchy, we can expect the local bourse to experience some selling down today. Therefore, we believe the FBM KLCI may even test the 1,500 mark assuming investors sentiments are truly spooked.

“Meanwhile, we would advise investors to stay sidelined and bargain hunt if and when the benchmark index dips below the 1,500 level,” it said.

Over the course of the day yesterday, speculation was rife over a realignment of the Pakatan Harapan coalition following separate meetings involving several political parties.

The flurry of political activity will continue today, as Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail and her husband, PKR president Datuk Seri Anwar Ibrahim, is scheduled to have an audience with the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah at Istana Negara.

Another is an emergency meeting by DAP at party headquarters.

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