Investor Avoid Malaysia : Credit Suisse

Credit Suisse : Investor to Avoid Malaysia , a politically unstable country


Credit Suisse tells investors to avoid Malaysia

KUALA LUMPUR, Sept 3 — International financial services group Credit Suisse has lumped Malaysia and Thailand, where a state of emergency has been declared, into the same category of politically unstable countries where investors should avoid buying stocks.
Bloomberg quoted a Credit Suisse brokerage report as saying a power struggle between Opposition Leader Datuk Seri Anwar Ibrahim and the government is heightening risks to the Malaysian economy.
“While we are a step closer to political conclusion, we really are none the wiser as to what that outcome will be,” Bloomberg quoted Stephen Hagger, a Kuala Lumpur based analyst at Credit Suisse, as writing in a report today.
Hagger wrote: “Malaysia offers some value versus the region, but it is not really cheap enough to justify the risks.”
Bloomberg also reported that other brokerages were forecasting tough times.
Southeast Asian markets have “not yet approached levels where visible risks have been fully discounted,'' Goldman Sachs Group Inc. was reported to have said in a Sept. 1 report, citing concerns over the political outlook in Malaysia and Thailand.
“We've been underweight in Thailand for the better part of the last two years because of a continuation of the negative domestic political sentiment,” Beat Lenherr, who oversees more than $20 billion (RM46 billion) of assets as Singapore-based chief global strategist at LGT Capital Management, told Bloomberg
“Malaysia faces similar problems and we're heavily underweight there as well.”