FBM KLCI and General Election Affect

Malaysia Stock market trends during election periods

When is the likely month for Malaysia GE13 to be held anyway?
There are many opinion on the likely date: in March 2012 (insider rumors), in Jun 2012 (past 2 GE election were held during school holidays) and then Sept 2012. I think the ruling party is still trying hard to measure 'feel good factor' among the people in order to decide the best date.

The table below show how KLCI trends during the election periods. (click to enlarge)

HwangDBS Vickers:  Looking all the way back to 1978 to analyze stock market trends before and after the GEs, we do not see any apparent trends pre- and post-elections. For example, on a one-month time frame, out of the previous eight GEs, the Malaysian equities market climbed five times before and after the GE.  But in reality, our local bourse tends to show a higher correlation with external factors, like in 2008 when the benchmark KLCI broadly tracked the MSCI Asia ex-Japan Index

klci election effects

Malaysia Stock market trends during election periods

When is the likely month for Malaysia GE13 to be held anyway?
There are many opinion on the likely date: in March 2012 (insider rumors), in Jun 2012 (past 2 GE election were held during school holidays) and then Sept 2012. I think the ruling party is still trying hard to measure 'feel good factor' among the people in order to decide the best date.

The table below show how KLCI trends during the election periods. (click to enlarge)

HwangDBS Vickers:  Looking all the way back to 1978 to analyze stock market trends before and after the GEs, we do not see any apparent trends pre- and post-elections. For example, on a one-month time frame, out of the previous eight GEs, the Malaysian equities market climbed five times before and after the GE.  But in reality, our local bourse tends to show a higher correlation with external factors, like in 2008 when the benchmark KLCI broadly tracked the MSCI Asia ex-Japan Index

klci election effects

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