GE15 is over. While quite a number were first time voters, what's more interesting is that, there is no political party or coalition that obtained a simple majority for the 1st time.
With Perikatan Nasional (PN) confident of forming the government via their press conference this morning, fears over sin stocks like breweries such as HEIM & CARLSBRG, gaming stocks such as GENM, GENTING, MAGNUM, SPTOTO are gaining traction. This is due to Parti Islam Se-Malaysia (PAS) being a component of PN which contributed a substantial number of seats. I do believe some are wonderful companies, while some are decent, but panic selling could persist over the next few days. No wonder stocks which are less susceptible to political factors are considered "safer" stocks.
The YDPA is expected to see the leaders of political parties tomorrow to submit the name of PM to aid his decision making in selecting a PM that in his opinion can command the confidence of Parliament.
Similar to others, I had not expected that PN to be capable of winning so many seats to get a chance to form the government. All along it was the dominant Barisan Nasional (BN) and the promising Pakatan Harapan (PH) which came into power in 2018 that broke BN's continuous reign of being the government.
I think Mr. Market would not take this result with ease. I expect more great volatility in the local stockmarket from now on. Although one could point out that, when Muhyiddin took over as PM in 2020, and the local stockmarket recovered fairly quickly in line with the glove mania, it would be hard to guess on how much influence can PAS can exert on the PN government and whether sin stocks like those mentioned above would be affected.
The result of GE15 is probably what the supporters of PN desire, but certainly not what the supporters of PH wanted. Voters of PN would like a clean government free of corruption cases that is prihatin, while supporters of PH would have preferred PH to continue the efforts of its previous 22 months in power and not let it be in vain.
We have done our part well by turning up to vote. Let's hope the incoming government does their part well.
Turbulent times are ahead, but I don't think PN will start banning sin stocks' products & services outright and immediately. We'll still have some cheers for this World Cup.
Created by CynicalCyan | Dec 26, 2022
Created by CynicalCyan | Nov 13, 2022