Dawn of a New Era
May 9 certainly marks a significant day for Malaysia. To witness immense joy and the surreal feeling of Malaysians united coming for a common course is just something so remarkable that would perhaps go down the record books for decades.
As Malaysia makes its way in the historic books, markets witness significant “swings” as well. Bursa Malaysia remains closed right into the weekend which allows time for investors to absorb the new realities. The Malaysian currency fell more than two percent in offshore forward markets. Many analysts are predicting on the knee-jerk reactions of the market simply because of the surprising win by Pakatan Harapan. Do expect volatility as markets never respond to surprises well. As reported yesterday, the iShares MSCI Malaysia ETF dropped 6.03 percent overnight.
According to Bloomberg, “Moody’s Investors Service said there’s lack of detail, but some campaign promises by the current ruling coalition would “credit negative” for Malaysia. In particular, scrapping GST without any measures to offset the loss in revenue would increase the economy’s reliance on oil income and narrow the government’s revenue base”
Whatever the situation may be, the outcome will be known when markets reopen on Monday. As we embrace the long weekend and as we welcome in our new government what's important is that we continue to safeguard ourselves with continuous purchases of precious metals over the next few days to balance out any further correction from markets in the coming days. Let's be in perennial vision for the future and your purchases of gold and silver today would certainly be in no better timing.
To celebrate the appointment of our 7th Prime Minister, Silver Bullion is having flash sales for certain products. Stay tuned to our website on the “Featured” tab to check out the latest items on sale.
To an exciting long weekend ahead,
Emerson Dinesh
Sales and Marketing Manager