PETALING JAYA: Stocks on Bursa Malaysia surged to an all-time high of RM2 trillion in total market capitalisation, driven by improved investor sentiment and optimism on the likelihood of interest rate cuts by major central banks.
“Today, we chart a new record on Bursa Malaysia. Our equities market capitalisation has skyrocketed to a record high of more than RM2 trillion!” said Bursa Malaysia in a euphoric posting on X, as well as its Facebook, Instagram, and LinkedIn accounts.
It also said the benchmark index FBM KLCI soared past 1,600 points for the first time in two years. The index rallied for its fourth straight day, closing 8.29 points higher to 1,605.68 points, its highest level since April 2022.
“The above indicators are testament to the strength of our market and Malaysia’s economy.
“With over 1,000 public-listed companies (the highest number in the Asean region), we’re well-positioned to reach greater heights!” the exchange operator said.
A slew of initial public offerings (IPOs) this year have contributed to the local exchange’s increased market capitalisation. A total of 18 companies have been listed so far this year, and most have seen gains since their debut.
Bursa Malaysia is targeting 42 IPOs this year with a market capitalisation of RM13 billion.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng noted there was buying across the board today.
“We maintain our optimistic view on the local stock market, supported by appealing valuations and ongoing foreign investment,” he said, while acknowledging the potential for profit-taking.
Foreign investors have also returned to buying Malaysian stocks in the last two weeks. Foreign buying of Malaysian equities surged 3.6 times to RM1.06 billion last week from RM292.2 million the previous week.
MIDF Research’s latest fund flow report stated this marked the strongest weekly net buying figure in two years.
It said the last instances of such substantial inflows were observed in the week ended March 18, 2022, at RM1.18 billion. - FMT
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