M’SIAN STOCK MARKET TO SELL DOWN ON FEARS OF HIGHER INTEREST RATES? LET’S BE HONEST, EVEN IF NAJIB WON – BANK NEGARA IS WAITING TO HIKE INTEREST RATES THE MOMENT GE14 IS OVER

SINGAPORE: Malaysia’s stock market will become more volatile after Tun Dr Mahathir Mohamad won a stunning victory in the nation’s elections, ending Datuk Seri Najib Tun Razak’s rule.

“We cannot rule out this raises the interest level for foreign investors (typically underweight the market) anticipating change,” analyst Aarti Shah wrote in a note.

Foreign investors have already been piling into the Malaysian stock market ahead of elections with over $600 million in flows, according to Bloomberg data.

After hitting a record high in April amid an increase in foreign inflow, Malaysia’s benchmark FTSE Bursa Malaysia KLCI has gained 2.8 percent this year.

After hitting a record high in April amid an increase in foreign inflow, Malaysia’s benchmark FTSE Bursa Malaysia KLCI has gained 2.8 percent this year.

 The iShares MSCI Malaysia ETF, known as EWM, dropped 6 percent to US$32.42, the lowest since December, as trading volume jumped. – ANN

Malaysian ETF slumps as surprise election win heats up trading

 THE biggest exchange-traded fund holding Malaysian stocks staged its biggest slump in almost 2 1/2 years as volume surged amid a surprise election victory by the country’s opposition alliance.

The iShares MSCI Malaysia ETF, known as EWM, dropped 6% to US$32.40, the lowest since December, as trading volume jumped to US$144mil, about six times the average daily turnover in the past year.

Local markets are closed Thursday and Friday after the government declared public holidays.

Former Malaysian Prime Minister Tun Dr Mahathir Mohamad’s stunning victory ended the six-decade rule of Prime Minister Datuk Seri Najib Razak’s party.

It also halted the ruling coalition’s 61-year grip on reign, a monumental shift in a nation that hasn’t seen a transfer of power since independence in 1957. Investors were expecting a win for Najib.

“Above-average trading volumes could point to investors re-positioning from an allocation perspective due to uncertainty around the political landscape,” said Jonathan Molchan, a money manager and head of U.S. product development at Horizons ETFs. – Bloomberg

ANN

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