With the Perikatan Nasional (PN) coalition successfully grabbing a sizeable amount of parliamentary seats in the 15th General Election (GE15), most Malaysians have expressed their concerns over the future of the country, as well as if there is a possibility of Islamisation of the nation.
According to The Star, the local stock market sank early this morning after investors digested the news of the hung parliament.
At 9.05 am, the FBM KLCI was down 14.29 points to 1,435.03 and the overall market sentiment was negative, with 426 decliners compared with just 45 gainers.
Meanwhile, it was all red for those counters that were considered the sin sectors — entertainment, gambling and liquor.
Among the losses were Genting, who lost 34 sen to RM4.14, Genting Malaysia lost 19 sen RM2.52, Carlsberg lost RM1.10 to RM22.10, while Heineken dropped RM1.24 to RM23.50.
Side effect of GE15
This phenomenon is known as a “knee-jerk selldown” by Malacca Securities Research and it also expects the market to stabilise after a Prime Minister candidate is submitted to the Palace by the 2 pm deadline.
“Given the range of the FBM KLCI after the change of government from PH to PN during Feb-2020 to Oct-2022 was around 1200-1700, we expect the knee jerk selling pressure may build up for this week, heading towards the 1,300-1,350 zone,” it added.
Nonetheless, it also said that the side-effects would depend on the party make-up of the winning coalition.
“PN coalition – the market may avoid sin sectors, while focusing on shariah related.”
“PH government – the market could focus on construction, telco and renewable energy, but may not be corporation-friendly,” the research firm said.