THE Movement Control Order (MCO), which has been reinstated in five states and three federal territories for two weeks, and the declaration of a state of emergency until August appear to have had just a minor effect on the local bourse. The FBM KLCI fell sharply on Tuesday when the emergency was announced but rebounded strongly on Wednesday for an overall positive week. Looking at the share prices across the board, for many, there is a feeling of déjà vu.
When the MCO was first enforced on March 18 last year, not many would have thought that stocks would rebound quickly, aided by market liquidity and a loan moratorium.