Equity trading declines as a “complete” lockdown country

A man wearing a face mask to protect himself from Covid-19 passes in front of the two Malaysian flags in the capital Kuala Lumpur.

Faris Haziq | Sopa Image | Light Rocket via Getty Images

Malaysian stocks fell in early Monday trading as the government announced a nationwide “complete blockade” to curb the daily surge of Covid-19 infections in the country.

benchmark FTSE Bursa Malaysia KLCI Index After falling about 1.5% at the opening price, it settles at about 1.1% — poor performance Most Asia Pacific markets.

Malaysia is struggling to control A surge in Covid infections. Last week, the country reported a record increase in coronavirus cases for the fifth straight day, with more than 565,500 cumulative infections and 2,729 deaths as of Sunday, Ministry of Health data showed.

Prime Minister Muhyiddin Yassin announced on Friday that the country will be closed for two weeks starting Tuesday after the market closes.

During the period, individuals are usually allowed to leave the home to buy what they need or seek medical services. For companies, services that provide essential services continue to operate, and certain segments of the manufacturing sector can operate with reduced capacity.

Brian Tan, an economist at Barclays Bank in Singapore, estimated that the measure would cost the Malaysian economy 0.5 to 1 percent every two weeks.

Mr Tan wrote in a memo on Monday that he lowered Malaysia’s 2021 growth forecast from 6.5% to 5.5%. This was below the central bank’s forecast range of 6% to 7.5%.

Equity trading declines as a “complete” lockdown country

Source link Equity trading declines as a “complete” lockdown country

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