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Snap election emerges as another stock market theme

 
UPON RANDOM POLITICAL EVENT OCCURS, WE DO NOT KNOW WHICH ONE WILL BE MAINLY BENEFICIAL FROM EVENT, TRY BOTH EDEN AND ASB WHILE THE PRICE STILL CONSOLIDATING NOW
Given Perikatan Nasional’s (PN) razor-thin majority in parliament and arguably shaky position in government, talk of a snap election continues to swirl. What would be the risks for the local market if a snap poll were to be called?
The PN coalition gained its first victory in parliament when it successfully removed Dewan Rakyat speaker Tan Sri Mohamad Ariff Md Yusof. This is seen as a vote of confidence for Prime Minister Tan Sri Muhyiddin Yassin.
However, the motion went through by a margin of only two votes.
Some analysts think it could be an opportune time for PN to seek a fresh five-year mandate from the people as Malaysia’s battle against the Covid-19 pandemic is perceived by many, including foreigners, as having been well-managed. Furthermore, the coalition’s economic stimulus packages have been welcomed by most citizens.
 
In a recent research note, Macquarie forecasts that a general election will be held from late August to early November and is expected to provide a medium-term catalyst for the market.
Increasingly, the pendulum seems to be swinging towards a PN win, which will please the business community as the coalition is seen to be pro-business, says the research house. “With a more stable political situation likely to bode well for economic activity, we would see an early election as a positive for the market in general, with pump-priming likely to come after, rather than before, an election, given time constraints, setting the stage for a positive end to 2020.”
Eden Inc Bhd and Thriven Global Bhd have come on the radar as both are linked to Datuk Fakhri Yassin Mahiaddin, Muhyiddin’s son.
Property developer Thriven’s share price has risen 27% year to date while Eden, which is involved in food and beverage and tourism, has seen a 3% increase.
 
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