Investors dump Malaysian shares on fears of BN suffering a massive defeat

Foreign selling causing fall in Bursa

Foreign investors lead the pack by dumping Malaysian shares across the board as the KLCI dropped below 1300 points. The key Bursa index has fallen by almost 200 points from its high in January and has continued to fall since the Malaysian PM announced the coming election. Analysts say the drop in Malaysian shares were more severe compared to other Asian markets.

Market traders say that rumours of BN receiving unfavorable forecast reports for its election campaign in most of the states has caused jitters among mainly foreign investors while local investors continue to hold their position owing to the feel good hype created by the BN election machinery. BN is not expected to lose its majority stake but investors say that it is not impossible for BN to lose a few states including Penang and that would mean major policy changes again in Malaysia.

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