Before the Chinese New Year, a small "erection" was created on the KLCI. Now that the New Year celebration is over and general election is hinted to be in a month's time, speculators are wondering if there is going to be any rally upwards, at least until the general election.
While the current government (Barisan Nasional - BN)'s image has been tarnished (I guess only those who surfs the web would know - read Malaysia-today). BN is now all out to redeem their image through media (which are mostly government controlled). Stories after stories are being told on how the government has helped Malaysians. BN politicians are going to the grassroots for support.
Well.... as usual, nothing has been heard about opposition, except for bad news about them.
So, my forecast in the election is that the BN is going to win again, but may lose some seats (only some, I do not expect a miracle). The sleepy PM whi said he worked realloy hard is going to rule this god-forsaken land again, paving way for his Son-in-Law.
My forecast in the market? While BN is going to splash money to woo voters, Investors will be inpressed with the government's "effort" to help the Rakyat. I believe there will be some rally, but don't expect a big bull, maybe a cow until the general election is over. 1,500 points perhaps? While this is very optimistic, a more conservative one would be 1460 points.
Make sure you run for your lives from the markets after the election, because the Malaysian market will not be able to be a hero in the weakening financial markets and economy around the world.
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