Malaysia investors shift to Mahathir's camp from Najib-linked losers

(May 14): Investors sorted Malaysia’s political haves from the have-nots on the first trading day after a shock election result, dumping shares in firms associated with supporters of ousted prime minister Najib Razak and projects backed by his government.

Veteran politician Mahathir Mohamad came out of retirement to lead the opposition Pakatan Harapan (Alliance of Hope) to a stunning victory over a ruling party he had once led, defeating Najib, a former protege he had accused of corruption.

As Malaysian markets reopened for trading after being shut for two days after the election last week, one of the biggest losers in the equity market was AirAsia Group Bhd, whose chief executive Tony Fernandes endorsed the incumbent Najib during the campaign. Shares of CIMB Group Holdings Bhd, whose group chairman Nazir Razak is Najib’s younger brother, also plunged.

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