June 3 (Bloomberg) -- Malaysia's political volatility made its shares least favored in Southeast Asia, Goldman, Sachs & Co. said, recommending that investors also pare holdings in Thailand, Indonesia and the Philippines as growth and earnings slow.
The nations' equities were cut to ``underweight'' from ``market weight,'' Singapore-based analysts including Rick Loo wrote in a report dated yesterday. The region's shares are unlikely to rise as economic concerns escalate, they said.
In Malaysia, opposition leader Anwar Ibrahim is seeking to oust the ruling party, while Thailand's benchmark SET Index yesterday plunged the most since January on speculation anti- government protests and rising consumer prices will dent growth. Inflation will hurt the Philippines most and Indonesia faces a ``tighter fiscal and monetary backdrop,'' Goldman said.
The question is: did they exit the market and recommend to underweight? Is this a new news or old news? Well, let's see whether KLCI will fall more after this being made public.