Now if you read the papers especially after the recent elections, local newspapers have been reporting non-stop about the politics in Malaysia. Since the opposition captured 5 states in the Peninsula and 82 seats in parliament, there are rumours that Pakatan Rakyat will be forming the new government soon. Statements by PR leaders about MPs crossing over to the PR side in Sabah will swing the simple majority held by BN in Parliament over to PR.

We all know what happened to our market when it re-opened after the elections. Circuit breaker was activated and KLSE stopped trading for 1 hour to cool off the sell-off in the market. But counters with fundamentals still intact regain their composure and politically linked stocks are punished. Now if there was a complete change of government to PR, can you imagine what would happened to most of the GLCs therefore bringing down the KLCI index even lower. I won't be surprised if the circuit breaker was to be activated again.


My question is, if that were to happen again and the sell off doesn't stop when the market re-open, what would be your actions during these times? Do you sell, hold or buy more? Or even stand at the sidelines and watch the fireworks.

I ask this now because it seems inevitable something will be happening soon in the political scene in Malaysia.

I think i shall represent the thought of beginner since i just started to trade 2 weeks ago.

If during that time, i got shares in hand, i will throw it out no matter what the price is , and then stand at sideline and wait for the next trading day where price are going to shoot up.

If i am not wrong, the 1st trading day after 308 drop for 123 pts right, then the next day CI rose by 20 + points.

The worse n most feared scenario is when PR take over, the BN ppl could cause riot and slayings ... another may 13 to keep PR powerless by forming emergency ruling. Basically these emergency rulers r selected by agong and he'll select ppl frm umno to head the emergency committee.

The current leadership had shown us wht they can do with penang riot. These these put power before our nation's interest. I'm not surprised if they sacrifice our whole economy jst for the sake of personal interest.

When they r no longer in power, they will resort to the dirtiest tricks. Anyway, the rakyat is still the key, if they choose to b influenced used as political pawn to create unrest n chaos, malaysia will collapse.

uh.. may 13 wont happen again.

ppl nowadays are more educated and civilized. the MPs crossover to PR before sept (as announced by anwar) would be a bumpy ride for all of us, which i dont want too.

but if the next election is won by PR, then i guess things would be much better..

ya, altho the possibility is much lower compared with 40yrs ago but its still exist nonetheless bcoz the leaders mentality is still the same, primitive.

I too would support the idea of PR winning the ppl over with their effort this term n taking over by winning the nxt election but seems it'll happen sooner thn expected.

Lets hope this time the umno ppl n generally malaysian are more matured and wont bring down the entire nation for the sake of som1's personal interest.

It's hard to foresee what would happen. Even during the last election, both sides restrain themselves when the results were official. Although I do have my own share of fear of the chaos that might occur if PR were to suddenly take power. The issue is the transition of power whether it would be as smooth as the last election which is not perfect but not totally chaotic. but lets not divert from the topic.

The question still stand, what would you do with your investments in KLSE when the politics in Malaysia goes upside down. It's no secret that if the present BN governemnt were to fall, a lot of GLCs might take a real beating and might not even recover. Although not all GLCs are completely useless, it can't be helped to think that they can be what they are at the moment without the help of the government. I doubt the smaller ones can survive and will most likely be gobbled up by their bigger counterparts.

KLSE weighted average depends a lot on GLCs to hold it where it is. If all major GLCs are sold-off, we can probably see KLCI drop to 500-800 points again I'm guessing. But imagine other counters that are not GLC, like if Public Bank were also sold off in the panic and drop to RM6.00 again for instance, will you buy it?

That's true, golden oppotunities might emerge for those company that are origin competitive in nature and not rely on gov to secure their business one.

On the statement of 'not all GLCs are completely useless', that's fair but it is also difficult to find GLCs that are evolving from their own competitiveness.

Just my 2 cents.

Even now the market look attractive but i would still prefer to hold my money and pick up stock if there is a big drop in shares price as a result of changing government if PKR happened to take charge. A lot indication lately another political tsunami might happen.

I don;t denied that people now are more civilized and educated but there are still a lot uncivilized people out there in our society that can cause another May 13. There are some who might do it for money. Just play safe.