KUALA LUMPUR- With RM7.32 billion market capitalisation of stocks wiped off Bursa Malaysia on Monday, analysts believe that the market is oversold as investors’ sentiment appears to be diverting from fundamentals following the general election that deliveredThe sell down of sin stocks, such as gaming, tobacco and beer manufacturer counters, saw a staggering RM2.
Danny Wong, CEO of Areca Capital, said investors have put Malaysia’s strong economic fundamentals on the backseat as they focus on hung parliament. Mr Wong explained that once the current political situation is settled, any small positive news will be the catalyst for a decent rebound. Conceding that investors have overreacted by selling stocks due to the hung parliament scenario, a fund manager from a local brokerage firm said “the sell down of sin stocks is not over”., and will not join the larger coalitions namely Pakatan Harapan or PN to form the federal government.