The Kuala Lumpur Composite Index (KLCI) was mauled on Monday on a knee-jerk reaction to the results of the general election. Panic selling eased after the one-hour circuit breaker was triggered at 2.58pm due to a 10% drop in the KLCI. Trade resumed at 3.58pm and closed 9.50% or 123.11 points lower to 1,173.22. The KLCI hit a low of 1,157.47 today.
A total of RM86.16 billion market capitalisation was wiped out on Bursa Malaysia, down from RM983.77 billion on 7 Mar 2008. A total of 1.18 billion shares were traded valued at RM3.21 billion. Losers overwhelmed gainers 905 to 26, while 62 counters unchanged.
The fall on Bursa was led by government-linked companies (GLCs) and Selangor affiliated companies. Kumpulan Perangsang Selangor Bhd and Puncak Niaga Bhd were the worst hit with the former falling RM1.74 to RM 1.68 and the latter easing RM1.34 to RM3.18. Heavyweights hit hard were Sime Darby Bhd plunging RM1.60 to RM9.40, Tenaga Nasional Bhd skidding RM1.30 to RM7.35, Telekom Malaysia Bhd falling 95 sen to RM9.95 and Malayan Banking Bhd easing 50 sen to RM8.45.
But research houses say the election results were good for the Malaysian capital markets in the long term as the selldown was only a knee-jerk reaction to the news that the Barisan Nasional lost five states to the Opposition and its two-thirds majority in Parliament.