KUALA LUMPUR: Bursa Malaysia started post-election trading in the red despite expectations for a relief rebound following the ruling government's retention of control in three states.
At the start of trading, the benchmark FBM KLCI was little changed at 1,45.16 but fell slightly to a low of 1,452.15 shortly thereafter.
However, Malacca Securities Research noted that the result of the recent state elections was optimistic for the trading landscape.
"With the state election concluded with a '3-3' status quo outcome, we reckon the FBM KLCI may stage a relief rebound.
"The outcome is deemed positive to demonstrate the ability of the Pakatan Harapan-Barisan Nasional pact government," it said in a statement.
The research firm added that the lower liners are expected to see improved trading sentiment with investors re-positioning ahead of the barrage of corporate earnings releases.
With regards to external developments, it said there remains uncertainty surrounding the release of the minutes of the recent US Federal Open Market Committee Meeting later this week.
On the FBM KLCI, there was some mild profit-taking in bank stocks including Maybank down three sen to RM8.99, Public Bank falling two sen to RM4.14 and CIMB shedding four sen to RM5.57.
Plantation counters in the red included Sime Darby Plantation
dropping four sen to RM4.45, Kuala Lumpur Kepong sliding 10 sen to RM23 and IOI dipping one sen to RM4.07.
Top active counters included Classita up 0.5 sen to 9.5 sen, Advance Synergy dropping 1.5 sen to 15.5 sen and UEM Sunrise rising two sen to 56.5 sen.
