Wednesday, 16 Dec 2020 02:28 PM MYT
On November 28, Prime Minister Tan Sri Muhyiddin Yassin indicated in his speech that a general election would take place once the coronavirus was brought under control. “But the stock market performance immediately after the elections will be largely determined by the degree of selling pressure during the campaigning period, and the actual polling results.
Meanwhile, concerns over the potential downgrade of Malaysia’s bonds in FTSE Russell’s World Government Bond Index may lead to short-term outflows of foreign funds and heightened volatility in the market. The current foreign shareholding in Malaysia as at end-November 2020 was 20.8 per cent at an estimated value of around RM364 billion, with every 1.0 percentage point change in the foreign shareholding ratio will lead to an outflow of around RM17.5 billion, said CGS-CIMB.