Bursa Malaysia’s construction index, which marks the listed builders’ share prices, sank at 13.45 points (or 10.53%) at 114.33 during the bourse’s 12:30pm break.
Given the global outbreak of Covid-19, the Malaysian government imposed a 14-day movement control order (MCO) effective from March 18 until March 31 in order to prevent the spread of the virus.
Thus, construction industry players are now agreeing with market talk that construction work will pause in compliance with the MCO, noted CGS-CIMB Securities Sdn Bhd analyst Sharizan Rosely, reported The Edge.
“A two-week stop-work order on all construction works nationwide (under the MCO) is likely to be effected and commence on March 18. This will be negative for property developers and pure contractors,” Sharizan said.
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The construction index now stands at its second-largest percentage decline after the energy index dropped at 10.59%.
The FBM KLCI, on the other hand, settled at 29.73 points (or 2.4%) at 1,209.28.
Mudajaya Group Bhd, WCT Holdings Bhd, and IJM Corp Bhd are also among the construction stocks that dropped four sen or 21.05% at 15 sen, 5.5 sen or 18.33% to 24.5 sen, and 23 sen or 16.43% to RM1.17, respectively.
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