KUALA LUMPUR: The global onslaught of the Covid-19 pandemic and fluctuations in the domestic political landscape have led to a rather turbulent journey for Bursa Malaysia over the past two years.
In March 2020, the local bourse’s benchmark index, the FBM KLCI, dipped below the 1,300-point mark and has remained under pressure ever since.
However, Bursa Malaysia is capable of regaining its strength, supported by domestic stability, said Principal Asset Management Singapore chief executive officer and chief investment officer Christopher Leow.
He said the country’s economic growth will be the government’s benchmark in the Covid-19 era, with stability playing a crucial role, moving forward.
“I believe that the government understands the importance of stability and economic growth in the next election,” he told Bernama in an interview recently.
Leow noted that the market seemed to have entered calmer waters after the appointment of Datuk Seri Ismail Sabri Yaakob as Prime Minister, which was followed by the historic signing of an agreement between the ruling party and the opposition bloc.
According to Bloomberg, the FBM KLCI moved between 1,452.13 and 1,695.96 in the 52-week range, while year-to-date, it recorded a 4.05% drop as of Oct 7.
On Friday, it closed at 1,563.9, with turnover at 4.99 billion units worth RM3.34 billion.
As for the days to come, analysts are expecting investors – especially foreign ones – to remain on the sidelines pending the tabling of Budget 2022 on Oct 29, as the budget serves as an indicator of the government’s stability.
With regard to the Asean market, Leow said the region has been lagging behind due to the outflows it suffered following the Covid-19 pandemic.
“However, with the reopening of the economy following the rising vaccination rate in the region, global confidence will increase, leading to an economic rebound while strengthening the region’s resilience.
“This will result in the recovery of the gross domestic product as well as earnings growth across sectors such as hospitality, aviation and others,” Leow said.
Source: The Sun Daily
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