Not About Elections – things that make you go hmmmm

19/02/2013 by

For some months now, I have been badgering my few economist friends to write something about the Malaysian elections announcement which has dragged on for too long. They have been unusually reticent and it puzzled me that even seasoned stock traders are staying out of this one.

I started to notice a dearth of election market reports which was rather strange as there would typically be at least half dozen equity reports, at least, out there. Instead, I only find cursory mentions without much elaboration and snippets of news.

Its 2013 and a do or die election coming up because it will have to be held !

Some people are starting to talk to me in hushed tones and insistence on anonymity. Apparently, there is some splintering in the main party and Dr M has thrown his weight behind Muhyiddin. MCA and MIC described as millstones around UMNO’s neck. And not alot of coverage on the latest Pakatan rally of 100,000 in the Merdeka stadium.

Then I was sternly warned that an economist at a certain bank has been, presumably, suspended from work for making a less than enthusiastic comment about the election outcome.

Australian senator to be deported from Malaysia

Things that make you go hmmmm.

On an optimistic note, ” Feb. 19 (Bloomberg) — Singapore’s Temasek Holdings, CapitaLand Malaysia and Iskandar Waterfront Sdn. will agree to acquire a man made island measuring ~28.33ha at Danga Bay in south Malaysia for ~800m ringgit today, the Star reports, without saying where it got the information.
Seller is Iskandar Waterfront Holdings: Star
Cos. to develop island into mixed-use development comprising high-rise buildings, landed homes, mall and F&B outlets over next few years, newspaper says.
Development may cost 8b ringgit including land, report says.”

Then we have this, *SINGAPORE, MALAYSIA RELEASES JOINT STATEMENT ON HIGH SPEED RAIL.

This is certainly promising. And therefore, I will not be writing them off anytime soon.

In Malaysia, it’s cool. Mongolian chick, opposition parties switching sides after winning, and also just a few hundred thousand Filipinos now naturalised citizens.

So if you ask me about SGD/MYR ?

I am tempted to say, SELL.

Malaysia is not bad. Look at Italy.

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KLCI has underperformed with the worry of not so much a change of regime but a change in power bases which would lead to reallocation of contracts.

There are few proxies for trading the KLSE except for futures contacts while the ETFs for KLCI do not look promisingly liquid.

So here is the list of the KLCI components. I like Maxis but will not be buying any. I think that EM stocks are due for a correction.