This article first appeared in The Edge Malaysia Weekly on May 7, 2018 - May 13, 2018

All eyes are on the long-awaited 14th general election (GE14) on May 9, a midweek polling day that comes just ahead of the May 13 Mother’s Day weekend. Whether former finance minister Tun Daim Zainuddin will accurately predict the outcome of GE14, as he did for the past two elections, will likely have a bearing on local share prices.

Oil prices remained at new multi-year highs last week, hovering above US$73 a barrel at the time of writing, on continued geopolitical tensions in the Middle East. Local pump prices, however, have been unchanged for five weeks (since the week of April 5 to 11).

The ringgit fetched 3.9395 to the greenback as at 5pm last Friday, still near three-year highs although not as strong as 3.8620 on April 2. The ringgit’s peg to the US dollar of 3.80 was breached in July 2015.

Bank Negara Malaysia’s Monetary

Policy Committee is slated to release its rate decision and monetary policy statement this Thursday, right after the polls. Expectations are for the overnight policy rate to remain unchanged.

Also slated for release on May 10 are the latest monthly labour force statistics as well as the Industrial Production Index and manufacturing statistics for March.

Elsewhere, key economic data releases this week include China’s latest trade balance data on May 8 as well as key rate decisions by the Reserve Bank of New Zealand on May 9 and the Bank of England on May 10.

On the Malaysian corporate front, companies having their annual general meetings (AGMs) this week include Malaysia Airports Holdings Bhd, Globetronics Technology Bhd, Ranhill Holdings Bhd and Rohas Tecnic Bhd on Tuesday; UEM Edgenta Bhd and Gas Malaysia Bhd on Thursday; as well as Heineken Malaysia Bhd, Malaysian Bulk Carriers Bhd (Maybulk) and Brahim’s Holdings Bhd on Friday.

Globetronics, Maybulk and Rohas Tecnic are also having extraordinary general meetings (EGMs) this week.

Globetronics is seeking shareholders’ approval for a 1-to-2 share split as well as a proposed bonus issue of one bonus share for each six subdivided shares.

Billionaire Robert Kuok-controlled Maybulk is looking to pass its proposal to dispose of up 386.39 million shares or 21.23% equity interest in Singapore-listed PACC Offshore Services Holdings Ltd (POSH) via a renounceable restricted offer for sale to all its shareholders on a pro-rata basis of 386 shares for every 1,000 shares held at an offer price to be determined later. The proposed disposal of POSH, which will raise funds to strengthen its core dry bulk business, also marks Maybulk’s exit from the offshore services sector.

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