Malaysian Stocks, Ringgit, Slump After Abdullah Poll Losses 

By Chan Tien Hin

March 10 (Bloomberg) -- Malaysia's stock index slumped the most since April 2001 and the ringgit slid after the ruling coalition government lost the two-thirds majority it has held in parliament for 34 years.

The benchmark Kuala Lumpur Composite Index tumbled 76.31, or 5.9 percent, to 1,220.02 at 9:08 local time, set for its biggest drop since April 4, 2001. The ringgit weakened 1 percent to 3.1983, the biggest drop since June 8, 2007, according to data compiled by Bloomberg.

While the National Front coalition kept control of Southeast Asia's third-largest economy after the March 8 election, its reduced majority and loss of power in five of 12 states may see government-sponsored infrastructure projects face increased scrutiny, said Mushtaq Ibrahim, who manages about $1.4 billion at Amanah SSCM Asset Management Bhd.

``We're entering uncharted territory,'' he said. Foreign investors ``have been selling down the market in the last month over external factors, now they have this domestic issue that will cause them more worries,'' he said.

To contact the reporter on this story: Chan Tien Hin in Kuala Lumpur atthchan@bloomberg.net; Manirajan Ramasamy in Kuala Lumpur atrmanirajan@bloomberg.net