The iShares MSCI Malaysia (EWM) rallied nearly 6% in early U.S. trading Monday after the ruling party Barisan National and Prime Minister Najib Razak remained in power.
Malaysian stocks jumped to all-time highs in the wake of the elections.
“There’s more political certainty now. The market has been very cautious in the first quarter – we’ve seen many capital market transactions delayed. With today’s results, I feel that the policies that have been announced earlier on, there will be a continuation of that,” Zafrul Aziz, CEO of Maybank Investment Bank, told CNBC.
EWM was slightly higher for the year heading into Monday’s rally.
“We are expecting a surge in buying activity led by foreign and local institutional investors who are attracted to our lagging market performance versus the regional peers and strong economic fundamentals,” said David Ng, chief investment officer at Kuala Lumpur-based Hwang Investment Management, in a Reuters report.
iShares MSCI Malaysia