KUALA LUMPUR (Sept 9): The local capital market recovered significantly in August, with the improved sentiments partly being supported by resilient corporate profits for the second quarter of 2021 (2Q21), said Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar.
“The good news is that the market recovered significantly in August 2021. Foreign funds turned net buyers for the first time since June 2019 with a net inflow of RM1.1 billion. The FBM KLCI was up 7.1% month-on-month (m-o-m) to close at 1,601 points at the end of August 2021.
“With the anticipated safe reopening of the economy in line with the National Recovery Plan, and with the business-like approach and constructive attitude of the government, the business community and the people, Keluarga Malaysia if you like, we are hopeful that Malaysia will rebound and build back better and hopefully greener,” he said in his welcome address at the National Recovery Summit (Winning the War against Covid — The Road to Recovery) jointly organised by the National Recovery Council, Economic Club of Kuala Lumpur (ECKL) and KSI Strategic Institute for Asia Pacific today.
Abdul Wahid, who is also the ECKL chairman, said the improved sentiments were partly supported by resilient corporate profits for 2Q21, which increased 113% year-on-year (y-o-y) and 3% quarter-on-quarter (q-o-q) based on Malayan Banking Bhd's (Maybank) research universe.
“Similar positive sentiments were observed in the Malaysian bond market with foreign holdings increasing by RM6.6 billion in August 2021, bringing the year-to-date net inflow to RM24.6 billion,” he added.
Abdul Wahid highlighted that Bursa had a great year in 2020, with business volume as measured by average daily trading value (ADTV) more than doubling from RM1.9 billion to RM4.2 billion.
“[The] KLCI increased 2.4% to 1,627 points, the second-best performing market in the region. Business momentum continued into the first half of 2021 (1H21), with ADTV increasing to RM4.4 billion.
“But with worsening Covid-19 cases and prolonged movement control orders (MCOs), the KLCI declined by 5.8% to 1,533 points as at June 30, 2021, making our market one of the least performing markets in the region in 1H21,” he said.
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