Snap election emerges as another stock market theme
UPON RANDOM POLITICAL EVENT
OCCURS, WE DO NOT KNOW WHICH ONE WILL BE MAINLY BENEFICIAL FROM EVENT,
TRY BOTH EDEN AND ASB WHILE THE PRICE STILL CONSOLIDATING NOW
Given Perikatan Nasional’s (PN) razor-thin majority in parliament and
arguably shaky position in government, talk of a snap election continues
to swirl. What would be the risks for the local market if a snap poll
were to be called?
The PN coalition gained its first victory in parliament when it
successfully removed Dewan Rakyat speaker Tan Sri Mohamad Ariff Md
Yusof. This is seen as a vote of confidence for Prime Minister Tan Sri
Muhyiddin Yassin.
However, the motion went through by a margin of only two votes.
Some analysts think it could be an opportune time for PN to seek a
fresh five-year mandate from the people as Malaysia’s battle against the
Covid-19 pandemic is perceived by many, including foreigners, as having
been well-managed. Furthermore, the coalition’s economic stimulus
packages have been welcomed by most citizens.
In a recent research note, Macquarie forecasts that a general election
will be held from late August to early November and is expected to
provide a medium-term catalyst for the market.
Increasingly, the pendulum seems to be swinging towards a PN win, which
will please the business community as the coalition is seen to be
pro-business, says the research house. “With a more stable political
situation likely to bode well for economic activity, we would see an
early election as a positive for the market in general, with
pump-priming likely to come after, rather than before, an election,
given time constraints, setting the stage for a positive end to 2020.”
Eden Inc Bhd and Thriven Global Bhd have come on the radar as both are linked to Datuk Fakhri Yassin Mahiaddin, Muhyiddin’s son.
Property developer Thriven’s share price has risen 27% year to date
while Eden, which is involved in food and beverage and tourism, has seen
a 3% increase.
Disclaimer:
Please be informed that our analysis are solely for education purpose;
it is neither a trading advice nor an invitation to trade.
For trading advice, please speak to your remisier or dealer representative.
You are responsible for your own risk management
Do Your Own Due Diligence (DYODD)
https://klse.i3investor.com/blogs/share4u2019/2020-08-09-story-h1511617246-SNAP_Election_linked_stocks_buy_these_two_for_potential_FLASH_limit_up.jsp
For trading advice, please speak to your remisier or dealer representative.
You are responsible for your own risk management
Do Your Own Due Diligence (DYODD)
https://klse.i3investor.com/blogs/share4u2019/2020-08-09-story-h1511617246-SNAP_Election_linked_stocks_buy_these_two_for_potential_FLASH_limit_up.jsp
