Khazanah’s mass resignation unlikely to affect local market
In fact, the effect is relatively muted. So far, we do not see any big fluctuation in stock prices related to companies where Khazanah has invested in, which include CIMB Bank Bhd and Axiata Group Bhd.
KUALA LUMPUR: The resignation of the entire board members of Khazanah Nasional Bhd (Khazanah) will not likely have any impact on the local equity market as it is mainly influenced by regional bourses, said Hermana Capital Bhd chief executive officer and chief investment officer Datuk Dr Nazri Khan Adam Khan.
“In fact, the effect is relatively muted. So far, we do not see any big fluctuation in stock prices related to companies where Khazanah has invested in, which include CIMB Bank Bhd and Axiata Group Bhd,” he told Bernama.
Nazri Khan said reports that Khazanah, Permodalan Nasional Bhd and Petronas would likely come under the ambit of the Prime Minister’s Office instead of the newly formed Ministry of Economic Affairs would not hamper investors’ confidence in Malaysia.
“It is just a restructuring move and a baby step to improve the governance and feasibility of the three companies under the New Economic Model. Furthermore, it is also one of the ways to phase out
Datuk Dr Nazri Khan Adam Khan, Hermana Capital Bhd chief executive officer and chief investment officer
political appointees in the government-linked companies (GLCs) as expounded by Prime Minister Tun Dr Mahathir Mohamad,” he said.
Commenting on Inter-Pacific Securities Sdn Bhd’s statistics that foreign net outflow on Bursa Malaysia amounted to RM437.1 million from Monday to Thursday compared with foreign net selling of RM247.1 million a week earlier, Nazri Khan said it was mainly due to losses in oil and gas-related stocks affected largely by tensions between Yemen and Saudi Arabia.
Meanwhile, Assistant Professor of Management at Asia School of Business Dr Renato Lima de Oliveira said a series of resignations and changes in the GLCs would give greater leeway to the new government to pursue their policy priorities and manifesto.
“There is a lot of goodwill with the current government, with Malaysia’s historical alternation of power, and Pakatan Harapan (PH) will have the ability to put together their governing team. Many can see these changes as part of a unique historical moment.