Ringgit falls as Malaysia’s hung Parliament election
KUALA LUMPUR - Malaysia saw its first-ever hung parliament in Saturday’s election after none of the three major coalitions won enough seats to form a majority, extending the political crisis in an economy on a fragile rebound.
While uncertainty remains, investors are expected to take the results in their stride as most have factored in a hung parliament as a “default position,” according to analysts.
Still, the ringgit dropped 0.6 per cent against the US dollar to 4.5837 following the election results, with the Malaysian currency the worst performer in Asia on Monday.
Against the Singapore dollar, the ringgit weakened 0.45 per cent to 3.332, making for a year-to-date drop of 7.3 per cent.
Malaysia 10-year yields were steady at 4.32 per cent but the nation’s share benchmark dropped as much as 1.5 per cent.
Most of Malaysia’s gaming and alcohol-related stocks fell following the Islamic party PAS’ advance in the elections.
Malaysian party leaders have until Monday afternoon to inform the nation’s monarch of their choice for prime minister and the alliances they have formed.
Veteran opposition leader Anwar Ibrahim’s reformist coalition won 82 parliamentary seats in the elections, the biggest haul among the competing blocs. Meanwhile, former prime minister Muhyiddin Yassin said he has enough support to make a bid for the premiership.