KUALA LUMPUR (September 22): Public Investment Bank Bhd said today that Malaysia’s 3 Five-Year Capital Market Master Plan (CMP3) for 2021-2025 is truly a framework and a work in progress for the next five years and that the program will continue to strengthen the country’s capital market, which expanded to RM3.4 trillion at the end of 2020 from RM2 trillion at the start of 2011.
“In the present, however, the Malaysian capital market (especially equities) will continue to be dominated by political and Covid-19-related developments,” the Public Investment research team wrote in a note today. hui in response to CMP3, which the Securities Commission Malaysia (SC) unveiled yesterday.
SC Chairman Datuk Syed Zaid Albar said in the CMP3 document that the program aspires to a capital market and a supportive ecosystem that works for the collective good of all.
“Strategic initiatives over the next five years will be guided by six key development and regulatory priorities. These strategic axes focus on stimulating competitive growth, empowering investors for a better future and forming a stakeholder economy, while simultaneously integrating shared responsibility, prioritizing efficiency. and results. , as well as the adoption of technology, ”said Syed Zaid.
Today, Public Investment said that while there appears to be some peace on Malaysia’s political front so far and some improvement in the national pandemic situation with the number of new cases declining daily, although still high, the stock market did not take off from the 120 point gain recorded in early August.
According to Public Investment, the FBM KLCI gave up 70 of this 120-point gain to now stand at 1,530 points.
“The market will remain very trade-oriented for now, although it is encouraging to note that foreign investors have been net buyers in recent weeks, which suggests that the flow of regional investors could accelerate then. that the country’s growth prospects continue to improve.
“From a medium to long term perspective, the market still looks attractive, currently trading around 1 standard deviation below price / earnings averages. We continue to advocate buying on weakness, in anticipation of a rebound in 4Q 2021. We maintain our KLCI close at the end of 2021 at 1,590 points, ”Public Investment said.
Meanwhile, AmBank (M) Bhd Chief Economist Dr Anthony Dass and Economist Muhamad Farid Anas Johari wrote in a note today that AmBank believes a successful implementation of the CMP3 over the next five years will put Malaysia on a higher pedestal among global financial markets.
“Our market will continue to be competitive and attractive as the global trend evolves as we become more efficient, diverse and relevant.
“With greater efficiency and a more inclusive and diverse capital market, Malaysia would be able to generate more investor interest and better valuations, which in turn would benefit our businesses and the economy,” they declared.