Malaysia's markets show no post-election panic

(May 14): Malaysia’s markets showed few signs of investor panic as trading reopened after Mahathir Mohamad swept to power in a surprise election outcome.

Stocks and the ringgit recovered from an early slump to climb higher, as concerns over an untried government were allayed by the appointment of experienced advisers including a former central banker and finance minister. Bonds pared losses.

“We have turned mildly positive over the short term,” said Danny Wong, chief executive officer at Areca Capital Sdn. “Most of the local funds have turned slightly positive with more clarity from Mahathir," he said, citing the appointment of key ministers and the formation of a council of five elders. “Confidence is returning.”

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