Malaysian shares prices are expected to fall due to domestic political uncertainties and the announcement of weak financial results by local companies, analysts said Friday. Malaysia's profit-reporting season has hampered trade on the bourse over the past week.
"I don't see the numbers are going to be very optimistic and the market is going to react negatively to that," Kaladher Govindan, head of research with brokerage firm TA Securities, told AFP.
Kaladher said the political situation could also influence the market. "There are a lot of political uncertainties so investors will adopt a wait and see approach. There is no positive news to drive up the market," he said.
A battle for control of northern Perak State flared again in recent days, as the defiant opposition alliance used a parliamentary manoeuvre to suspend the new leadership which had been sworn in by the state sultan.
The opposition called for a snap election to end the impasse in Perak, which the ruling Barisan Nasional coalition seized earlier this month with the help of defectors who upset the delicate balance of power.
Malaysia will also hold two by-elections in April after the dominant United Malays National Organisation - which leads the ruling coalition - holds its annual gathering in late March. For the week to February 20, the Kuala Lumpur Composite Index lost 20.13 points or 2.21 percent to 889.71 points.