KUALA LUMPUR (April 6): The FBM KLCI erased losses at the 11th hour to close 0.88 point or 0.05% higher while Bursa Malaysia small-cap stocks fell after Prime Minister Datuk Seri Najib Tun Razak announced today the Malaysian Parliament will be dissolved tomorrow.
The dissolution is to make way for the nation's 14th general election (GE14), which is expected to be held within 60 days after the Parliament's dissolution.
At 5pm today, the KLCI closed at 1,837.01 after trading between 1,826.32 and 1,839.07. Bursa Malaysia's small-cap index fell 68.07 points or 0.49% to end at 13,908.16.
“It’s in the holding mode, as the market waits for the outcome of the election," Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com. "I still think the benchmark KLCI may react strongly but only post-election, since most companies do not want to take big positions now, one way or the other,” Pong said.
Malaysian shares also took cue from the ongoing China-US trade spat, which has affected global market sentiment. Across Asia, bourses closed mixed with Japan’s Nikkei 225 and South Korea’s Kospi down 0.36% and 0.33% respectively while Hong Kong’s Hang Seng rose 1.11%.
Hong Kong markets resumed trading today after markets were closed yesterday for the Tomb Sweeping Day or Ching Ming Festival holiday.
In Malaysia today, Pong said: “The trade spat looks like it is spiralling out of hand, maybe. If it doesn’t get arrested somewhere along the line, the outcome is likely to be even more unsettling for the market as a whole."