KUALA LUMPUR (May 15): AmBank Group Research said while yesterday may have started on a worrying note, the overall sentiments following the unprecedented win by Pakatan Harapan (PH) have turned positive.

In note today, AmBank group chief economist and head of research Dr Anthony Dass said this was reflected by some key indicators that saw improvements during the intra-day — (1) 5-year credit default swap (CDS), which is used to measure risk aversion, fell by 3.7 points to close at 85.7; (2) the ringgit settled stronger against the US Dollar at 3.95; (3) 10-year Malaysian Government Securities yield ended lower at 4.16; and (4) the KLCI rose 23 points to 1,850 despite foreign selling of RM682 million.

“Although there was an improving intra-day trend, we expect some level of volatility to remain at least in the near term.

“Part of it will come from external noises, especially the US Fed rate hike aggressiveness and potential incoming data that will indicate the European Central Banks’s ability to end the quantitative easing by end-2018,” he said.

Dass said on the domestic scene, while confidence is being restored with the strong track record of the 7th prime minister, the 5 Council of Elders members, naming of three senior cabinet ministers as well as the potential release of Datuk Seri Anwar Ibrahim with a full pardon, investors will be looking at the formation of the full cabinet while seeking clarity on several points in the PH manifesto.