The Association of Stockbroking Companies of Malaysia (ASCM) has urged Putrajaya to suspend trading on Bursa Malaysia.
In a statement today, the ASCM said market capitalisation has dropped 23 percent from RM1.04 trillion on Dec 31, 2019 to RM804.63 billion on March 18, 2020.
This meant RM235 billion has been wiped out from the stock market in two-and-a-half months.
"Bursa Malaysia should be suspended for the time being as a defensive measure to protect the stock market from suffering severe damage that could take almost a decade to heal," said ASCM chairperson Azman Manaf in a statement.
The FBM KLCI closed at 1,239.01 points on Wednesday, which the ASCM pointed out was a 28 percent retraction since the end of December 2019 when it stood at 1,588.76 points.
Azman warned that the FBM KLCI could fall below 1,000 points - a level not seen since 2009 - if the government does not take evasive measures.
"Such a catastrophe will definitely affect the national economy in the worst possible way.
"Banks will carry a huge amount of non-performing loans, and public listed companies will see tremendous erosion of market capitalisation, while brokers will carry big contra losses and thousands of retail investors will experience bankruptcy," he said.
China and the Philippines have suspended their stock exchanges recently.
The global economy has been choked by slowing demand and supply disruptions primarily due to an outbreak of the deadly Covid-19 virus.
Malaysia has reacted by imposing a movement control order yesterday, shutting down most businesses to prevent people from gathering and further spreading the virus.
However, financial services, including Bursa Malaysia, were allowed to operate. - Mkini
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.