KUALA LUMPUR (May 10): Market correction following results of the 14th General Elections is likely to be brief, says AllianceDBS Research Sdn Bhd.

In a market focus note today, AllianceDBS believes any market selldown may be brief and offer accumulation opportunities, as Tun Dr Mahathir Mohamed has 22 years of experience governing the country.

AllianceDBS also said structural reforms will be a catalyst to watch out for over the medium term. It added that it has dropped CIMB Group Holdings Bhd, Gamuda Bhd and Sunway Construction Group Bhd as its top picks.

“But reiterate our remaining top picks, Malayan Banking Bhd, Hong Leong Bank Bhd, Bumi Armada Bhd, Sapura Energy Bhd, SKP Resources Bhd, Hibiscus Petroleum Bhd Unisem (M) Bhd, Wah Seong Corp Bhd, Globetronics Technologies Bhd and Yong Tai Bhd,” the note added.

Following the unprecedented political tsunami whereby Pakatan Harapan (PH) created history by securing the majority of Malaysia's Parliament seats, investors are likely to be concerned as to whether the transition will be smooth.

Meanwhile, as PH has vowed to review all mega projects which have been awarded to foreign parties to ensure it is done in the best interest of the nation, AllianceDBS expects headwinds for the construction sector.