During the height of COVID-19 in March 2020, the KLCI reached the level of approximately 1,301 points, exacerbated by the negative impact of the pandemic on the global economy.

As of Monday (November 11), the benchmark has since risen to around 1,609 points, an overall increase of 23.7%.

Mr Ng Zhu Hann, founder and chief executive of Kuala Lumpur-based boutique fund manager Tradeview Capital, told CNA that the volatility in the Malaysian stock market between 2018 and 2022 clearly shows how sensitive it is to driving disorders.

“So if you look at the chain (of events that coincided) with that period, with the changes in administrations, the political changes in the Sheraton Move, it’s clear that the five-year downward trend has to do with political instability,” he said Mr. Ng.

The Sheraton Move refers to a 2020 political maneuver that led to the fall of the Pakatan Harapan government and the resignation of Dr Mahathir Mohamad as Prime Minister.

This subsequently led to several different appointments as Prime Minister: first, with Muhyiddin Yasin in February 2020, and then Mr. Ismail Sabri Yaakob in August 2021.

Mr Anwar was appointed prime minister to lead a unity government after general elections in November 2022 ended in political deadlock.

Mr Ng said: “Since 2020, (Malaysia’s stock market) has risen by almost 200 points, and this makes us one of Asia’s top performers over the past year, behind only Taiwan and India. There has been a revival, but the KLCI has yet to recover from the 1,800-point level it was at its peak in 2018.”

In addition to a rise in the market index, Mr Ng noted that Bursa Malaysia as a whole also rose with its total market capitalization – a way of measuring a company’s value based on the number of shares and share price – breaking the 2 trillion RM (US$454 million) for the first time in May.

“This was a broad rally led by stocks in real estate, banking and also utilities,” he added.