KL bourse may see 'political rally' near term (Ext: BT)

MALAYSIAN stocks may enter a “near-term political rally” amid speculation Prime Minister Datuk Seri Najib Razak will introduce measures to boost investor confidence after he took office last week, Deutsche Bank AG said.

The benchmark Kuala Lumpur Composite Index “is likely to ignore fundamentals near term as Malaysia ushers in a new prime minister,” Su-Yin Teoh, a strategist at Deutsche Bank in the Malaysian capital, said in a note today. “Watch out for potential market-friendly policies.”