KUALA LUMPUR: Six out of 10 Khazanah Nasional Bhd’s key stocks on Bursa Malaysia took a heavy plunge, losing about RM2 billion off the combined market value in just a single day.
This follows news that its managing director Tan Sri Azman Mokhtar and eight board members had submitted their resignations.
For comparison, the loss in market capitalisation is equivalent to the market value of at least two small cap companies.
Axiata Group Bhd, the national sovereign fund’s second largest exposure on the Malaysian stock market, was the biggest loser among the key benchmark index, having lost 3.93 per cent.
Other Khazanah Nasional’s six stocks on the losing end include Malaysia Airports Holdings Bhd, Telekom Malaysia Bhd, CIMB Group Holdings Bhd, UEM Sunrise Bhd and UEM Edgenta Bhd.
The decline of Khazanah Nasional’s key stocks however was disguised by the rise of FTSE Bursa Malaysia KLCI which accumulated 0.14 per cent in full-day gain to close 1,766.23 points.
Khazanah Nasional’s Time Dotcom Bhd however saw its shares gain 1.12 per cent to RM8.14, Tenaga Nasional Bhd edged up 1.48 per cent to RM15.10 dan IHH Healthcare Bhd rose 0.5 per cent to RM6. Astro Malaysia Holdings Bhd ended flat from Wednesday’s close.
MIDF Research head Redza Rahman said this was only a short-term shock.
“All of the Khazanah Nasional-linked listed companies are managed by professionals, even those with international operations such as IHH Healthcare and Axiata.
“There is even a minimal number of Khazanah Nasional’s senior management representing its board of directors,” he told NST Business.
“Therefore, at least in the short run, there will be minimal impacts should the operations of the companies are run with good corporate governance,” he added.
Redza said re-tweaking of khazanah Nasional’s role and operations would be a good move.
“Note that one of the government’s manifestos is to prepare suitable government linked companies for management buyouts.
“This is with the objective of increasing the percentage of Malay equity ownerships, which applies to the private companies owned by Khazanah Nasional,” he said.
Stock market analyst Nazarry Rosli expects smooth continuation of the change of leadership in Khazanah Nasional.
“We expect capable, experienced and professional personalities to take over the new team of board of directors and management,” he added.