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PETALING JAYA: The dip experienced by the Malaysian stock market since the state of emergency was announced in January reflects the weakness of the economy and investors’ lack of confidence in the country, according to economists.

Since Jan 12, Bursa Malaysia has fallen 2.1% compared to the double-digit improvements seen in the stock market indexes of Singapore and Thailand as well as the 7% bump the Asian Dow has experienced.

Yeah Kim Leng, a professor of economics at Sunway University, said the stock market could be a useful, if imperfect, measure of economic health that highlights specifics such as how investors project corporate performance and economic growth.

“There are other things you can look at, like production numbers, exports and employment to get a full understanding of how the economy is doing, but the stock index reflects the uncertainties among investors,” he told FMT.

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