Despite a sharp sell-off in Chinese stocks on the Hong Kong stock exchange this week, the FBM KLCI remained resilient and closed two points lower at 1,444 points yesterday. Market analysts believe investor expectations for a strong government in place at Putrajaya post-GE15 in late November should see the local market move higher despite the heightened risk factors and volatility in global markets. “GE15 is drawing some funds (local and foreign) into the local market on expectations a big win for one of the parties could lead to a more stable leadership and better policy outcomes. As of yesterday, the index was 7.9% lower year-to-date (or 19% lower in ringgit to US dollar terms). Wong said Chinese stocks that support Beijing’s policy of self-sufficiency and domestic policy such as electric vehicle makers, green tech players and consumer-related counters offer good long-term investment opportunities.
