KUALA LUMPUR (May 16): The local bourse operated by Bursa Malaysia Bhd recorded its highest traded value of RM7.3 billion on Monday (May 14), the first day of trading under Pakatan Harapan’s new government.
It noted that despite anticipated uncertainties when the market re-opened on Monday after the 14th general election, encouraging signs emerged early and prevailed, and with strong support from both local and foreign buyers, the market remained stable throughout the first half of the week, Bursa said in a statement today.
The traded value of RM7.3 billion on Monday was the highest ever in record, with daily market velocity at 96%.
The FBMKLCI ended the first trading day after the elections 3.91 points or 0.21% higher at 1,850.42 after a knee-jerk selloff earlier at the opening.
“The market was seen to have normalised today, up by 10.06 points from the previous close,” Bursa said.
The Malaysian stock market closed at 1,858.26 points today, up 0.54% from its previous close.
“In line with its function as the national stock exchange, Bursa had ensured adequate and robust market management measures were securely in place to maintain a fair and orderly market in the event of excessive volatility.
“The fact that the market was resilient and remained well-supported over the last three days reflects Malaysia’s strong economic fundamentals and investor confidence.
“The additional two-day break allowed the market to make rational investment decisions that were underpinned by stronger corporate earnings growth and positive economic outlook,” said the exchange’s chief executive officer Datuk Seri Tajuddin Atan.
The imminent developments such as institutional and governance reforms will further enhance Malaysia’s competitiveness, in line with Bursa’s continuous efforts in championing corporate governance among listed companies as key levers of sustainable growth, the statement read.
The exchange will continue to step up initiatives to increase the depth, breadth and vibrancy of the Malaysian capital market, it said.
Bursa is an approved exchange holding company under Section 15 of the Capital Markets and Services Act 2007, and operates the local bourse, offering equities, derivatives, offshore, bonds as well as Islamic products, and provides a diverse range of investment choices globally.
Source: The Edge Markets