A perfect storm of domestic and international selling combined to batter Bursa Malaysia in the second last trading session of the month. At the close on May 30, the bourse was down a whopping 56.56 points to close at 1,719.28.
Its regional peers did not fare much better as Japan’s Nikkei 225, China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index also tumbled. However, the local bourse was the worst hit.
Regional markets regained some ground in the early session of trading on May 31. The KLCI was trading 7.68 points higher to 1,731.65 in the afternoon session. It remained below the 1,775.84 mark on May 28. Markets were closed for the Wesak Day holiday on May 29.
Domestically, it appears that the market reacted negatively to a stream of cancellations of mega projects and the increasingly worrying economic picture being painted by the federal government.