Malaysia's stock market has quietly outperformed its Southeast Asian peers this year, with the benchmark index rising to a record high, but can it continue to rise?
The KLCI has climbed around 9 percent so far this year, tapping an all-time high of 1846.92 this week, compared with declines of around 2-3 percent so far this year for the Jakarta Composite, Singapore's STI and Thailand's SET index.
Analysts point to several reasons for the outperformance, including receding political risk after the May elections resulted in the ruling coalition party, Barisan Nasional, receiving less than 50 percent of the popular vote, its lowest-ever showing.
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Since then, the market has reacted positively to the government's implementation of several long-awaited reforms to reduce the budget deficit, including a consumption tax to take effect in 2015, abolishing sugar subsidies and raising electricity tariffs on higher-income consumers and companies to cut a heavy fuel subsidy bill, analysts said.