The driving force of GE14
Stephanie Jacob | 14 Jul 2017 00:30
Elections will somehow impact a country’s financial markets. In the case of some developed countries, an election outcome may even impact the global economy.

With Malaysia due for the 14th general election (GE14) somewhere between now and August next year, there is likely to have some effect on both the markets and economy in the build-up to the polls and after results are made known.

In the Malaysian context, election years tend to be a boon for market sentiment, according to a recent TA Research (Q2 2017 Market Outlook) report. “Historical data showed that market sentiment generally improved in election years,” its head of research Kaladher Govindan points out.

The general perception is that the equity market is used as an avenue to raise funds for the election machinery. Stocks seen to be linked to certain political parties are likely to appreciate in price prior to the election.

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