KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
South Korea’s political turmoil deepened as Han Dong-hoon, leader of the ruling People Power Party (PPP), reversed his stance and called for the suspension of President Yoon Suk Yeol following allegations of misconduct during his martial law declaration.
Key Developments
Han's Reversal:
- Han cited credible evidence that Yoon ordered the arrest of key politicians during the martial law declaration.
- He warned that Yoon’s continued presidency poses significant risks to the country and its people.
Impeachment Likelihood:
- The opposition Democratic Party, which controls Parliament, needs only eight of the PPP’s 108 lawmakers to join its ranks for impeachment to pass.
- A vote is expected in the coming days.
Market Impact:
- Kospi Index: Fell 1.8%, extending its decline over three days.
- South Korean Won: Dropped nearly 1% amid increased political uncertainty.
Impeachment Process
- If the motion passes, Yoon would be suspended immediately, and Prime Minister Han Duck-soo would serve as interim president.
- The Constitutional Court would decide the case, a process that could take several months.
- If upheld, an early presidential election would follow.
Public and Political Sentiment
Approval Ratings:
- Yoon’s approval fell to 16%, his lowest since taking office in 2022 (Gallup Korea).
- Opposition Leader Lee Jae-myung: Leads in polls with 29% favorability, compared to 11% for Han Dong-hoon.
PPP's Dilemma:
- The ruling party faces a tough choice: distance itself from Yoon to preserve credibility or risk giving the opposition a decisive victory.
- Han’s shift reflects growing concern among conservatives about the political cost of supporting Yoon.
Broader Context
- The Democratic Party has reportedly mobilized lawmakers amid concerns of a second martial law attempt.
- Yoon’s martial law declaration earlier this week, swiftly rescinded after public and parliamentary backlash, has raised fears of recurring authoritarian actions.
What’s Next?
- A vote on impeachment is imminent. If successful, South Korea could face months of political uncertainty and potentially an early election.
- The ruling party must navigate the crisis carefully to avoid long-term damage to its electoral prospects.
This unfolding drama marks one of South Korea’s most significant political crises since the impeachment of former President Park Geun-hye in 2017.
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