KUALA LUMPUR, May 14 — There’s one word to describe Malaysia’s stock market as it reopened today after a three-day break that saw the Opposition party win office for the first time in six decades: Volatile.

The nation’s benchmark FTSE Bursa Malaysia KLCI Index plunged as much as 2.3 per cent today and swung between gains and losses in the first hour of trading. The market was shut for three days last week as Tun Dr Mahathir Mohamad led an alliance to unexpectedly beat the ruling Barisan Nasional coalition. In his first remarks as prime minister of Malaysia, Mahathir said he’d lead a business-friendly administration and find ways to boost the nation’s equity market.

Gamuda Bhd, the nation’s largest construction company, fell as much as 19 per cent — the most since October 2008 — after the new government said it will review the projects by the previous administration. Nestle (Malaysia) Bhd, a unit of Nestle SA, added 5.2 per cent after Mahathir’s coalition pledged to abolish the nation’s current goods and services tax, along with fuel subsidies and minimum wage realignment.

Market watchers had expected equities to fall across the board, with government-linked companies, benchmark index stocks and infrastructure companies taking the brunt of a potential selloff. iShares MSCI Malaysia ETF, the biggest exchange-traded fund holding Malaysian stocks, fell 6.2 per cent last week. The FTSE Bursa Malaysia KLCI Index has corrected by 3.3 per cent after it reached a record on April 19.

Affin Hwang Asset Management Bhd expected a decline of as much as 8 per cent in the first few days of trading post-election, while CGS-CIMB Securities lowered its end-2018 target for the benchmark index. UOB Kay Hian Holdings Ltd and Nomura Holdings Inc are reviewing their views on the main measure and equities. On the flip side, Malayan Banking Bhd has expressed optimism for financial markets following the election.

Construction

Mahathir campaigned on a promise to review all infrastructure projects including the East Coast Rail Link project. IJM Corp fell as much as 15 per cent, Malaysian Resources Corp slid 17 per cent and George Kent Malaysia Bhd plunged 30 per cent.

Political ties

Here’s a list of companies with ties to either former Prime Minister Datuk Seri Najib Razak’s Barisan Nasional party or Dr Mahathir’s Pakatan Harapan.

Family ties: CIMB Bank Bhd (chaired by Najib’s brother Datuk Seri Nazir Razak) slid as much as 13 per cent; Opcom Holdings Bhd., whose CEO Mokhzani Mahathir is Mahathir’s son, rallied 50 per cent. Thriven Global Bhd more than doubled in value, while Eden Inc Bhd. surged 88 per cent. The two companies’ chairman Fakhri Yassin Mahiaddin is the son of Muhyiddin Yassin whom Mahathir named home affairs minister Saturday

Government services providers: My EG Services Bhd plunged 30 per cent; Datasonic Group Bhd slid as much as 14 per cent DRB-Hicom Bhd fell 7 per cent. The company sold a stake in national carmaker Proton Holdings Bhd last year to China’s Geely Automobile Holdings Ltd. Mahathir was opposed to giving foreign investors control over Proton.

Felda Global Ventures Bhd, the world’s largest palm oil producer and a vital cog in Malaysian politics, gained as much as 14 per cent

Media companies: Utusan Melayu (M) Bhd, Media Prima Bhd and Star Media Group Bhd all slid. Utusan and Star Media are owned by United Malays National Organisation and the Malaysian Chinese Association. Media Prima’s group managing director Kamal Khalid previously ran the communications unit in the Prime Minister’s office

Destini Bhd tumbled as much as 38 per cent. The defence services contractor is owned by Rozabil Rozamujib Abdul Rahman, a member of the United Malays National Organisation, a party in the outgoing ruling coalition

KUB Malaysia Bhd dropped 29 per cent: Majority shareholder Anchorscape Sdn Bhd’s director Abdul Rahman Mohd Redza is the incumbent state assemblyman who won the Linggi seat in the state of Negeri Sembilan

Consumer consumption

Mahathir’s campaign pledge to nullify the nation’s current goods and services tax, fuel subsidies and minimum wage realignment could benefit the consumer sector, according to Gan Eng Peng, director of equities strategy and advisory at Affin Hwang Asset Management.

Dutch Lady Milk Industries Bhd, Fraser & Neave Holdings Bhd, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Padini Holdings Bhd all gained

Export oriented

The ringgit fell today to a four-month of 3.9865 per dollar. Export-driven companies with products from rubber gloves to technology climbed.

Inari Amertron Bhd gained as much as 8.2 per cent; Vitrox Corp Bhd rose 11 per cent; Unisem (M) Bhd added 11 per cent; Malaysian Pacific Industries Bhd rose 8 per cent; Globetronics Technology Bhd gained 11 per cent; Top Glove Bhd rose 5.9 per cent; Hartalega Holdings Bhd advanced 5.6 per cent.

Flying under the radar

AirAsia Group Bhd founder Tony Fernandes’s open support for former Prime Minister Datuk Seri Najib Razak’s Barisan Nasional coalition could impact the company’s shares, according to Vincent Khoo, an analyst at UOB Kay Hian. In a Facebook post yesterday, Fernandes apologised for his actions, adding that he “buckled” under pressure. AirAsia shares fell as much as 13 per cent, before narrowing losses to 5.1 per cent in recent trading. — Bloomberg