Malaysia's hard-hit stock market is getting a less-than-ringing endorsement with one of the world's leading lenders telling investors that things aren't likely to get any worse.
"There have been numerous globally attention-grabbing headlines on Malaysia this year, which we believe have increased political uncertainty and risk in investing in Malaysia," analysts at Deutsche Bank said in a note Monday.
"However, going forward, we do not expect this to increase."
Shares in Malaysia have been hit hard over the year so far: The KLCI is down around 4.4 percent year-to-date, after trading down as much as 13 percent at its mid-August lows. Foreign investors have sold a net 17.6 billion ringgit ($4.11 billion) worth of Malaysian equities so far this year, according to data from Maybank Kim Eng.
Meanwhile its currency, the ringgit, has hit levels seen since the 1998 Asian Financial Crisis and lost as much as 28 percent of its value against the U.S. dollar from the beginning of the year through the end of September. It has, however, recovered around 4.5 percent since then.
Malaysia's shares and currency have been hit with a toxic brew of declines in the prices of its commodity exports, especially palm oil and crude oil, as well as what may be the country's worst-ever political scandal, which has spurred protests calling for the removal of the prime minister from power.