With all the election shockers hitting stunned members of the public an even more ominous cloud hangs over the horizon. Earlier today (10th March 2008) the KLSE Stock Exchange saw a steady plunge to a possible 7 month low!
According to Reuters’s Investors Sell Malaysia On Political Uncertainty, the KLSE composite index has seen a drop as much as 7.6 percent as of 11.32am today. A quick survey of KLSE market updates available online here at around 3pm local time shows an even further slide to a near 10% decline!
Leading the list of top loser are stocks linked to the federal government which took the brunt of the damage. Among these are plantation-to-energy group Sime Darby Bhd, construction and engineering firm UEM World Bhd & Scomi Group.
Siting the reason of political uncertainty, the advent of 5 states being lost to Opposition parties has raised questions on the future of the various long-term development agenda (Corridors) that now will hinge on the on the cooperation of the opposition states.
