Stocks on Bursa Malaysia fell by as much as 1% today while the ringgit was flat.
KUALA LUMPUR: Stocks on Bursa Malaysia hit their lowest in more than five months today as political uncertainty remained high ahead of a Bank Negara meeting and the tabling of the 2021 budget, while Asia’s other emerging markets kept to tight ranges.BNM is expected to leave its policy rate unchanged tomorrow, and on Friday, the government will present its first budget focused on tackling the Covid-19 pandemic’s fallout.
Over the weekend, Prime Minister Muhyiddin Yassin urged MPs to pass the budget in spite of efforts by the opposition to oust his government and pressure from unhappy partners within the governing coalition. “The upcoming budget has become a contentious political issue,” ING said in a note, with the prospect of the budget not passing fuelling fears of yet another political crisis.