Malaysian stocks fell the most in a decade after the ruling coalition's worst election result in fifty years put Prime Minister Abdullah AHmah Badawi's position in doubt and raised questions about his spending program.Trading on the Kuala Lumpur stock exchange was halted for an hour after the Kuala Lumpur Composite Index tumbled by the 10 percent limit as opposition parties took control of almost half the states contested in March 8 elections. This is an automatic protection mechanism to protect the investors so that market might oversold or unreasonable selling due to panic in the market. Thus a down of 10% will automatic suspend the market and halt all trading activities. The market is close about 2:58pm Malaysia time. Till now Malaysia is the biggest drop market in Asia Pacific.
Most goverment linked company (GLC) stock prices are badly hit due the the uncertainties in their projects due to the change in the goverment especially the few main states such as Selangor, Penang and Perak. Foreign investors has been selling down the market since month ago and have been selling furiously today.
