Chemical Company of Malaysia Berhad Annual Report 2019

25. Financial instruments (continued) 25.6Market risk (continued) 25.6.3 Other price risk Equity price risk arises from the Group’s investment in equity investments. Risk management objectives, policies and processes for managing the risk Management of the Group monitors the equity investments on a portfolio basis. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the Board of Directors of the Group. Equity price risk sensitivity analysis This analysis assumes that all other variables remain constant and the Group’s equity investments moved in correlation with the FTSE Bursa Malaysia KLCI (“FBMKLCI”). In the previous financial year, a 10% strengthening in FBMKLCI at the end of the reporting period would have increased post-tax profit by RM18,600 for equity investments classified as fair value through other comprehensive income. A 10% weakening in FBMKLCI would have had equal but opposite effect on equity. There is no equity investment held by the Group as at the end of current financial year. | Notes to the Financial Statements (continued) | 200 CHEMICAL COMPANY OF MALAYSIA BERHAD