Hung parliament is likely to contribute to the knee jerk sell down. The market may stabilise after the PM candidate is sent in at 2pm, but with some side effects. PN coalition – the market may avoid sin sectors, while focusing on shariah related. PH government – the market could focus on construction, telco and renewable energy, but may not be corporation-friendly. Traders may pick up apolitical sectors such as telco, utilities, O&G and consumer. Also, high net cash, low gearing and high dividend yield companies could be seen as good to accumulate during the knee jerk sell down.
Open an Account with M+ Online and begin your investment journey today