Home News In print this week

The bubble of election-play stocks

Kamarul Azhar
Kamarul Azhar10/9/2017 08:00 AM GMT+08  • 4 min read
The bubble of election-play stocks
(Oct 9): With Malaysia’s 14th general election around the corner, some counters seem to be drawing more interest and performing better than others. There is nothing unusual about this, as the run-up to past elections has seen similar activity.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

(Oct 9): With Malaysia’s 14th general election around the corner, some counters seem to be drawing more interest and performing better than others. There is nothing unusual about this, as the run-up to past elections has seen similar activity.

These are stocks perceived to have a political flavour or have the potential to benefit from a good performance at the ballot box by the incumbents.

Without actual newsflow or a tangible improvement in earnings, however, the stocks’ lofty pre-election valuations tend to struggle after the ballots are cast. Once the hype passes, investors may come to realise the rally was not supported by the companies’ fundamentals, and gradually their share prices come down.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.