Malaysia's financial markets witnessed a historic day on Monday as the benchmark FTSE Bursa Malaysia KLCI Index soared to an all-time high after the country's ruling coalition returned to power for a 13th term.
The stock index crossed the 1,720 mark for the first time ever, briefly touching an intra-day peak of 1,826 as investors cheered the victory by Barisan Nasional (BN) and incumbent Prime Minister Najib Razak as confirmed signs of political stability and policy continuity.
"There's more political certainty now. The market has been very cautious in the first quarter – we've seen many capital market transactions delayed. With today's results, I feel that the policies that have been announced earlier on, there will be a continuation of that," Zafrul Aziz, CEO of Maybank Investment Bank, said on CNBC Asia's "Squawk Box."
Analysts said the results are a boost for the country's macroeconomic outlook over both the short and long term.
"Najib has made it clear fiscal reform will remain a priority, aiming to bring the deficit-to-GDP ratio down to 3 percent and public debt-to-GDP to 50 percent by 2015," wrote economists at HSBC in a research note.