KUALA LUMPUR – Sentiment on Bursa Malaysia turned cautious today amid speculation that Prime Minister Tan Sri Muhyiddin Yassin will declare an emergency, which may include the suspension of Parliament.
The benchmark FBM KLCI, which posted gains before the midday break, dropped 4.16 points, or 0.3%, to 1,494.64 after the close.
Analysts are cautious as there has yet to be anything concrete from official sources regarding the nature of the supposed emergency.
“It may not look too good right now since what’s lacking is the definition of this emergency. There are too many interpretations. Market confidence might be shaken,” said one.
Other market participants believe that foreign investors may not be perturbed, given that some sectors, such as technology and gloves, tend to stand out in emergencies, especially if it is one centred around health.
Rumours have swirled since yesterday over what Muhyiddin might do to avoid a defeat of the Budget 2021 bill, which is set to be tabled on November 6.
The prime minister, who holds a razor-thin majority of two seats in the Dewan Rakyat, cannot afford to have the bill defeated, as that would be tantamount to a no-confidence vote. – The Vibes, October 23, 2020
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