Will General Election Affect Bursa?

Most of us still can remember the year 1997 economy crisis which hit whole Asian countries. Those countries that major affected are South Korea, Malaysia, Indonesia, Hong Kong, Laos and Philippines. At that time, we can see that all these countries currencies dropped to a lower level against the US dollars.

Kuala Lumpur Composite Index KLCI

During that year, the economies of Southeast Asia were the main attraction for foreign investors due to its high interest rate. We observed that the hot money pumped into these regions various sector such as properties, stocks and so on. The growth domestic product rate was 8 – 10 % for these countries.

Today, we agreed that a country needs to be strong and transparent in order to attract foreign investors for long-term investment. Else, the country will need some miracles to sustain and grows its’ own economy.

My main concern now is whether our current Bursa Malaysia Kuala Lumpur Composite Index (KLCI) which has breached 1,500 points will continue consolidate or not? Or is it the possibility of the forthcoming General Election?

Based on my opinion, if a major changes happen such as the ruling party win in the election, then a stronger reaction is expected in the stock market. In the other words, people will believe in the government again, and they will invest more in the country. What’s about your opinion?

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