The rebound in Malaysia was led by government-backed local funds and investment bankers, MarketWatch Reports. State-run funds are key players in Malaysia’s markets and frequently support specific government-backed stocks when there is major selling pressure.

“We believe any market selldown may be brief and offer accumulation opportunities,” Bernard Ching, an analyst with Kuala Lumpur-based AllianceDBS Research, told MarketWatch.

Market watchers originally expected the equity market to broadly decline, with government-linked companies, benchmark index stocks and infrastructure companies taking the brunt of any selling after Mahathir’s government said it would review the projects under the previous administration – the new prime minister previously campaigned on a premise to review all infrastructure projects including the East Coast Rail Link project.

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