Stock market evens out after Anwar euphoria
Share prices on Bursa Malaysia stopped their uptrend trend today after rising sharply yesterday following the surprise decision by the Federal Court to release former deputy prime minister Anwar Ibrahim.
The Kuala Lumpur Composite Index (KLCI) closed at 841.9 points this evening - a drop of 0.14 - following caution in the market in the afternoon.
An analyst told
malaysiakini
that Anwar's
acquittal
may have had only a temporary effect on the KLCI after it closed at its highest level since July 19 at 842.04 yesterday.
The index stood at a high of 845.89 points this afternoon but ended the day much lower with the the downturn trend also showing in the Emas Index which closed at 199.83 - lower by 0.16 from yesterday.
Blue chip heavyweight Tenaga Nasional Bhd - one of the markets biggest losers today - saw a drop of 0.2 to close at RM10.10. Tenaga stocks were one of the market's top gainers yesterday closing at an increase of 30 cents at RM10.30 - a three percent rise from Wednesday.
However, the Second Board's Index this evening showed consistency with an increase of 0.48 to 109.75 points.
On the scoreboards, losers outnumbered gainers 366 to 293 while 295 counters remained unchanged. Turnover stood at 320.263 million shares valued at RM880.486 million with AMMB remaining one of the most active counters.
Forces behind rise
A market analyst who wished to remain anonymous said that generally there was buying 'across the board' with investors focussing on shares which were not picked up on yesterday.
"The market is holding up to a certain extent and it's a very good sign that shows foreign investors are quite happy," he said while asserting there was a big change in the market which reflected the country's political climate.
Bernama at midday, however, reported a market analyst as saying that investors today were waiting for further developments in the country's political and economical scene.
"The initial buying frenzy yesterday buoyed by the unexpected news of the acquittal of former deputy prime minister Anwar Ibrahim of sodomy charges has fizzled off," he said
The national news agency also reported William Cheng - President of the Association of Chinese Chambers of Commerce and Industry of Malaysia - as attributing yesterday's rise on the Bursa Malaysia to Prime Minister Abdullah Ahmad Badawi's recent visits to foreign countries.
"It was the all-important role played by (Abdullah) in promoting Malaysia as an investment destination on his recent visits to the United States , the United Kingdom, China and some Asian countries that sparked the uptrend," said Cheng.
Monday review
The long-running courtroom drama involving Anwar ,which began with charges of corrupt practice and sodomy in October 1998, had kept many foreign investors away from the market, analysts say.
While Anwar has been cleared of the sodomy charge, he hopes that the Federal Court review of its own decision on Monday will clear him of his abuse of power conviction and thus allow him to return to politics immediately without serving a five-year ban.
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