GE13: BN win - a boon for stock market on greater certainty

KUALA LUMPUR (April 24): A convincing victory for Barisan Nasional (BN) in Malaysia’s 13th general election (GE13) will see the stock market make a quantum leap as there is certainty in the current economic policies and reforms will continue.

The market will also likely see positive reaction even if BN wins by a small margin, as this is what most analysts are expecting.

Analysts and fund managers generally feel the market will jump if BN wins convincingly as the victory will offer assurance on the continuity of existing political and economic policies such as the Economic Transformation Programme (ETP) and Government Transformation Programme (GTP).
Affin Investment Bank Bhd analyst Andy Ong said if BN wins with a small majority, which is the baseline case adopted by most observers, the country’s political risk will recede and domestic liquidity will return to lead to an immediate market upside.

Credit Suisse analyst Tan Ting Min said the research firm expects the KLCI to see a “relief rally” should BN wins convincingly and caretaker Prime Minister  Datuk Seri Najib Tun Razak secures sufficient mandate to continue leading the coalition.

According to Tan, companies seen benefiting from a continuity in the nation’s leadership include CIMB Group Holdings Bhd, Gamuda Bhd, IJM Corp Bhd, IJM Land Bhd, Genting Bhd, Genting Malaysia Bhd, Bumi Armada Bhd, Tenaga Nasional Bhd, and UEM Land Holdings Bhd.