141) Is there Election Rally in Malaysia FBM-KLCI?

141) Is there Election Rally in Malaysia FBM-KLCI?

There are few investors who believe that the FBM-KLCI will rally before the Malaysia General Election. There is another group who thinks that there will be a rally after the election.

Good theory. Is there any basis for this concept?

Let’s look at the historical results for the past few elections since 1982 where General Election took place. 

We plotted the performance of the FBM-KLCI index 6 months before (pre) and 6 months after.(post) election dates. 

Below are the Performance Graphs for 6 months BEFORE the Election date.

Below are Performance Graphs for 6 months AFTER the Election date.

 

 

Below is the TABLE summary for the Pre & Post Election Performance of the FBM-KLCI. 

  

What do you think about the theory of Election Rally for the Malaysia General Election?