The electorate gains by Parti Islam Se-Malaysia, or PAS, could dent investor confidence as the party has previously called for the implementation of hardline Shariah law in the country. The party, which won 49 of the 220 parliamentary seats, is part of former prime minister Muhyiddin Yassin-led Perikatan Nasional alliance which is jostling with veteran opposition leader Anwar Ibrahim’s multi-ethnic Pakatan Harapan to form the government.
Stocks related to gaming and alcohol slumped in Malaysia after an Islamic party garnered the most seats at the country’s elections on Saturday, paving the way for an alliance it’s a part of to form the next government.
Shares of casino and resort operator Genting Malaysia Bhd. plunged as much as 11%, the most in more than two years, amid a broader selloff in the country’s equities. Its parent Genting Bhd. dropped as much as 10% while lottery equipment provider Sports Toto Bhd. was set for its lowest level since 1993. Brewers including Heineken Malaysia Bhd. and Carlsberg Brewery Malaysia Bhd. also declined.
