Malaysia Stocks Seen Extending Drop on Election: Southeast Asia
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Malaysian stocks are poised to extend losses after completing their worst month since September 2011 on concern the nation’s ruling coalition may lose seats in elections, according to UBS AG and Goldman Sachs Group Inc.
The benchmark FTSE Bursa Malaysia KLCI Index retreated 3.7 percent last month, after reaching a peak on Nov. 1. The gauge slumped to a five-month low on Nov. 27, dragging valuations to 14.7 times estimated profit, data compiled by Bloomberg show. Even after the declines, the KLCI index is trading at a 28 percent premium to the MSCI Emerging Markets Index.