PETALING JAYA: Bursa Malaysia’s benchmark index fell more than 15 points yesterday over political uncertainties in the country.This might be the beginning of something bigger. While the sell-down might have been a knee-jerk reaction, it also shows the sensitivity of investors to the political landscape. Already, there was a lack of fresh funds entering the market and with this latest development, there was even more reason for investors to remain on the sidelines, he a
dded. The current inflationary pressures would also have some weighting. There is no clear direction on how it (inflation) would impact consumer spending and the private sector. While government projects had been scaled back, the spending would still provide some form of cushion. However, some businesses are already “trying to play safe” by cutting down on expansion and inventories. This is not good for the overall aggregate of the economy. If private businesses were to slow down, it would remove the positive impact from the fiscal stimulus. According to the statistics released by the Government yesterday, inflation rose to its highest level in 22 months in May; up 3.8% from a year ago. Inflation in April was 3% year-on-year.
dded. The current inflationary pressures would also have some weighting. There is no clear direction on how it (inflation) would impact consumer spending and the private sector. While government projects had been scaled back, the spending would still provide some form of cushion. However, some businesses are already “trying to play safe” by cutting down on expansion and inventories. This is not good for the overall aggregate of the economy. If private businesses were to slow down, it would remove the positive impact from the fiscal stimulus. According to the statistics released by the Government yesterday, inflation rose to its highest level in 22 months in May; up 3.8% from a year ago. Inflation in April was 3% year-on-year.
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