Finally, Malaysian PM Najib has dissolved the parliament setting the way for the 13th Malaysian GE. By law, the GE must be held within 60 days from now. Now we wait for the Election Committee to announce the nomination and polling dates.  So are there investment opportunities from the GE?

So far the effect on the stocks have been subtle, with couple of stocks dropping on the first day of announcement and some have recovered since. In 2008, the KLCI dropped 8.9% between the dissolution of parliament and polling day. However, analysts don’t think that the weakness in stock market will be as severe this time round. According to Maybank research, the 12th GE KLCI was at 18x forward PE while this time round its only 14x forward PE.

If BN wins, the current policies will continue and stocks would probably have a major rally as the uncertainty is ...