For a volatile day when the Malaysian Stock Exchange reopened after a three-day break in which the opposition party took office for the first time in six decades. Malaysia's KTSI Index Malaysia-FTSE Bursa was last closed for three days a week, when Mahathir Mohamad led an alliance, unexpectedly struck the ruling Barisan Nasional Coalition. In his first statements as Prime Minister of Malaysia, Mahathir said he would lead a business-friendly government and find ways to strengthen the country's stock market .
Nonetheless, market observers expect stocks to fall across the board, with state-owned companies, benchmark index stocks, and infrastructure companies bearing the brunt of a potential sell-off . The iShares MSCI Malaysia ETF, the largest exchange-traded Malaysian equity fund, fell 6.2% this week. The FTSE Bursa Malaysia KLCI Index has corrected by 2.6 percent after reaching a record on April 19th.
Affin Hwang Asset Management Bhd. Expected to decline by up to 8 percent in the first few days of trading after the election, while CGS-CIMB Securities lowered its final 2018 target for the benchmark index. UOB Kay Hian Holdings Ltd. and Nomura Holdings Inc. review their views on key metrics and stocks. On the downside of the downside, Malayan Banking Bhd has expressed optimism for the financial markets after the elections.
Apart from the possible movement of the main track, here are the shares to see:
With Mahathir's campaign promise to review all infrastructure projects including the [EastCoastRailLink-Projekt19659017]keep an eye on Gamuda Bhd., IJM Corp. , Malaysian Resources Corp. and George Kent Malaysia Bhd.
Enterprises with affiliations The Barisan Nasional party of former Prime Minister Najib Razak or the Pakatan Harapan Mahathirs may also have trade interests.
- Family ties: CIMB Bank Bhd. (Chair: Najib's brother Nazir Razak), Opcom Holdings Bhd.'s CEO Mokhzani Mahathir is Mahathir's son, Eden Inc Bhd. And Thriven Global Bhd. Chairman Fakhri Yassin Mahiaddin is the son of Muhyiddin Yassin, whom Mahathir appointed Minister of the Interior on Saturday
- Governm Service Providers: My E.G. Services Bhd., Datasonic Group Bhd.
- DRB-Hicom Bhd. sold a stake in national automaker Proton Holdings Bhd last year. To Geely Automobile Holdings Ltd. in China. Mahathir Declined to Take Control of Foreign Investors Proton
- Felda Global Ventures Bhd., The World's Largest Palm Oil Producer and Vitalkog in Malaysian Politics
- Media Company: Utusan Melayu (M) Bhd., Media Prima Bhd. And Star Media Group Bhd. Utusan and Star Media are owned by the United Malaysian National Organization and the Malaysian Chinese Association. Media Prima Group CEO Kamal Khalid previously headed the communications unit at the Prime Minister's Office
- Destini Bhd., A defense services company owned by Rozabil Rozamujib Abdul Rahman, a member of the United Mala National Organization, a party in the main proceedings coalition
- KUB Malaysia Bhd. : Majority shareholder Anchorscape Sdn Bhd. Director Abdul Rahman Mohd Redza is the current State Assembly Chairman who won the Linggi seat in Negeri Sembilan State
Mahathir's campaign pledge Gan Eng Peng, director of equity strategy and advisory at Affin Hwang Asset Management, said that The current tax on goods and services could be repealed, fuel subsidies and a reorientation of the minimum wage could benefit the consumer sector.
- Among the stocks we will observe are Nestle Malaysia Bhd. , Dutch Lady Milk Industries Bhd., Fraser and Neave Holdings Bhd., Heineken Malaysia Bhd., Carlsberg Brewery Malaysia Bhd., Padin i Holdings Bhd.
Impact on Ringgit will affect technology for export-oriented companies with rubber glove products. Look for semiconductor manufacturers Inari Amertron Bhd., Vitrox Corp. Bhd., Unisem (M) Bhd., Malaysian Pacific Industries Bhd., Globetronik Technology Bhd .; Gloves Manufacturer Top Glove Bhd., Hartalega Holdings Bhd.
Flying under the radar
AirAsia Bhd. Founder Tony Fernandes Open support for former prime minister Barisan Nasional Coalition Najib Razak could affect the company's stock, according to Vincent Khoo, an analyst with UOB Kay Hian.