The general election is coming. The atmosphere, however, is
different this time. The FBM KLCI drastically plunged, as investors
cashed in their positions ahead of the general election.
Investors are worried about the uncertainty of the election. The index once hit an intra-day low of 1,631.40, down 45.04 points on Monday and plunged 33.51 points to near the psychological important 1,600 level the next day.
![PIPE DREAM: Najib, Umno pin GE13 hopes on 127 Malay, Bumi-majority seats]()
Investors are worried that once the BN loses the power, there might
be changes to the contracts and projects approved and issued by the
government, particularly huge projects like the MRT and the recently
inked West Coast Highway, causing a drastic plunge in political, banking
and blue chip stocks.
There is another argument saying that some people are raising general election funds and thus, try to push up stocks to gain profit. Therefore, it would be better for small stock players to wait and see, to avoid becoming the victims of big players.
It is the stock market's concern about the election.
Meanwhile, entrepreneurs and politicians also have their worries. Would the Pakatan Rakyat change the entrepreneur-friendly policies if it takes over the office? As every new sovereign brings his own courtiers, many people will lose their jobs for sure.
Mixed constituencies the king maker
Back to reality, the unpredictable voting tendency is more agonizing.
Based on last election's voter structure, there are 127 Malay- and Bumiputera-majority parliamentary constituencies, 43 Chinese-majority constituencies and 52 mixed constituencies. The Chinese has taken a very clear stand while the number of Indian voters is small. However, there is no definite answer for how serious is the split of Malay votes.
According to polling expert Datuk Seri Prof Syed Arabi Idid of the International Islamic University, mixed constituencies would be the most intense competition between the BN and the Pakatan Rakyat as each has 30% of basic support, while the remaining 40% swing voters will be the key that decides the results.
127 Malay & Bumi-majority seats may not be enough to save Umno or Najib
Based on the current trend, the BN has made too many mistakes and most swing voters actually tend to support the Pakatan Rakyat. Even if the BN is able to win big in Malay constituencies, it would still not be able to get two-thirds of seats.
Investors are worried about the uncertainty of the election. The index once hit an intra-day low of 1,631.40, down 45.04 points on Monday and plunged 33.51 points to near the psychological important 1,600 level the next day.
Investors are worried that once the BN loses the power, there might
be changes to the contracts and projects approved and issued by the
government, particularly huge projects like the MRT and the recently
inked West Coast Highway, causing a drastic plunge in political, banking
and blue chip stocks.There is another argument saying that some people are raising general election funds and thus, try to push up stocks to gain profit. Therefore, it would be better for small stock players to wait and see, to avoid becoming the victims of big players.
It is the stock market's concern about the election.
Meanwhile, entrepreneurs and politicians also have their worries. Would the Pakatan Rakyat change the entrepreneur-friendly policies if it takes over the office? As every new sovereign brings his own courtiers, many people will lose their jobs for sure.
Mixed constituencies the king maker
Back to reality, the unpredictable voting tendency is more agonizing.
Based on last election's voter structure, there are 127 Malay- and Bumiputera-majority parliamentary constituencies, 43 Chinese-majority constituencies and 52 mixed constituencies. The Chinese has taken a very clear stand while the number of Indian voters is small. However, there is no definite answer for how serious is the split of Malay votes.
According to polling expert Datuk Seri Prof Syed Arabi Idid of the International Islamic University, mixed constituencies would be the most intense competition between the BN and the Pakatan Rakyat as each has 30% of basic support, while the remaining 40% swing voters will be the key that decides the results.
127 Malay & Bumi-majority seats may not be enough to save Umno or Najib
Based on the current trend, the BN has made too many mistakes and most swing voters actually tend to support the Pakatan Rakyat. Even if the BN is able to win big in Malay constituencies, it would still not be able to get two-thirds of seats.