Malaysian capital market surges 12.6 per cent to RM3.2 trillion

KUALA LUMPUR: The Malaysian capital market surged 12.6 per cent to RM3.2 trillion in 2017 with strong growth seen across all segments, said the Securities Commission Malaysia (SC). It said the capital market saw double-digit growth across segments with the equity market rising 14.4 per cent to RM1.9 trillion, bond and sukuk was 10.1 per […]

Capital raising to dip to RM120b this year after record high in 2017

KUALA LUMPUR: The Securities Commission Malaysia (SC) expects total capital raising through primary and secondary markets to be around RM120 billion this year, lower than the record high of RM146.6 billion raised in 2017.

Last year’s figure represents a 48.8% jump from the RM98.5 billion capital raised in 2016.

In its annual report for 2017, the SC said domestic fundraising this year is expected to be driven mainly by capital raising in the corporate bond and sukuk market for infrastructure financing as well as refinancing of bonds and sukuk.

Fundraising through the corporate bond and sukuk market is expected to amount to about RM100 billion while equity fundraising is expected to be about RM20 billion, with RM8 billion to be raised via initial public offerings (IPOs) and RM12 billion via the secondary market.

SC chairman Tan Sri Ranjit Ajit Singh (pix) said 2017 was an exceptional year and the RM120 billion projected for 2018 is much higher than the long-term average of RM114 billion.

“People were anticipating rate hikes so they were positioning things differently. There are companies who deferred capital raising in 2015 and 2016, and moved to 2017. So there are multiple factors. You cannot use an outlier and use that as a new benchmark, it is not an appropriate comparison to make,” he told reporters at a briefing today.

Ranjit said there is a consistent level of capital raising that is occurring through Malaysia’s very well developed capital market, which shows that there is an avenue for businesses to raise a lot of funding.

“Malaysia is very fortunate to be able to develop a financial system that has a strong banking system and a strong capital market, not present in many markets. We have a very deep bond and sukuk market, which allows companies to access the bond and sukuk market to raise the sort of financing that you’ve seen,” he added.

Ranjit said both the equity and bond and sukuk markets still have a very favourable outlook and believes that the capital markets will remain vibrant this year while emerging markets will continue to outpace growth in developed markets.

“We believe the economic and market fundamentals for Malaysia are extremely strong, and given the improvements in corporate earnings, we think the positive sentiments overall will continue. We think 2018 will be a very good year,” he said.

Last year, the capital market grew 12.6% to RM3.2 trillion with total fundraising hitting a record high of RM146.6 billion, above the five-year average of RM114 billion.

Equity market capitalisation grew 14.4% to RM1.9 trillion while bond and sukuk outstanding grew 10.1% to RM1.3 trillion. Islamic capital market increased by 11.9% to RM1.9 trillion, representing close to 60% of the overall capital market.

Of the RM146.6 billion raised last year, RM124.9 billion was raised in the corporate and bond market, RM7.2 billion via 12 IPOs and RM14.5 billion in the secondary equity market.

The fund management industry posted 11.5% growth with assets under management of RM776.2 billion compared with RM696.3 billion in 2016, while the unit trust industry’s net asset value expanded 19.1% to some RM427 billion.

Meanwhile, the SC announced today that it will jointly establish a working group with Bank Negara Malaysia to accelerate digitisation of the stockbroking industry. Named Brokerage Industry Digitisation Group (BRIDGe), it aims to enhance operational efficiencies and service standards.
This year, the SC also aims to license the first digital investment manager and release findings from its ongoing blockchain pilot project.

PMB Investment eyes O&G in 2018

corporatenews10 feb2017

KUALA LUMPUR (March 15): Oil and gas (O&G) and construction are the sectorial themes for PMB Investment Bhd’s equity investment strategy this year, amid improving prospects underscored by Petroliam Nasional Bhd’s (Petronas) significantly higher earnings last year. The technology sector had been the focus of PMB’s investments last year, its chief executive officer Najmi Mohamed said. At a media conference today, he said the Islamic fund management firm intends to increase its exposure to O&G given Petronas’ encouraging financial performance for the year to end December when it doubled itsRead More

SC : RM146.6b raised in Malaysian capital market in 2017

corporatenews10 feb2017

KUALA LUMPUR (March 15): Fundraising total jumped nearly 49% in Malaysia’s capital market to RM146.6 billion in 2017, compared with RM98.5 billion in 2016 against a positive global backdrop. In its Annual Report 2017 released today, the Securities Commission Malaysia (SC) said primary market issuances amounted to RM132.11 billion, while the remaining RM14.5 billion was raised through the secondary market through rights issues and private placements. A total of RM124.9 billion was raised in the corporate bond and sukuk market, while RM7.2 billion was raised via new equity listings withRead More

BPA Malaysia weekly bond market report 11 March 2018

Market players were mostly remained on the sidelines this week due to the uncertainties in the global market as a result of an emerging trade war. As such, the Thomson Reuters BPAM All Bond Index recorded a modest gain of 0.131 per cent and closed at 157.246 points from 157.041 points last Friday. The gain […]

BPA Malaysia weekly bond market report 25 February 2018

The Index shed marginally by 0.018 per cent to close at 156.625 points from 156.653 points last week. The MGS yield curve continued to steepen over the week as yields at the five-year to 25-year region inched up by one to five bps while yields at the front end of the curve only added 1bp, […]

The week at a glance 25 February 2018

Sabah & Sarawak Extreme optimism on KKB upon initiation by MIDF Research As the leading steel fabricator in East Malaysia – and one of the only few Petronas licensed fabricators here – MIDF Amanah Investment Bank Bhd is optimistic on KKB Engineering Bhd with their initiation on the firm. With over 55 years of experience […]

Stronger performance at Bintulu Port boosts FY17 profits

KUCHING: Bintulu Port Holdings Bhd (Bintulu Port) saw its core net profits for its financial year 2017 (FY17) coming in at RM153.3 million which is 12 per cent higher against forecasts of Kenanga Investment Bank Bhd (Kenanga Research) due to stronger performance from Bintulu Port. It declared a single-tier dividend of 6.0 sen per share […]

Indonesia raises US$1.25b in first Asian sovereign green bond sale

HONG KONG, Feb 23 — Indonesia has become the first Asian country to sell “green” bonds internationally in a US$1.25 billion deal as one of the world’s worst greenhouse gas emitters tapped into investor interest in climate-friendly investments….

M’sia was largest sukuk issuer globally in 2017

KUALA LUMPUR: Malaysia maintained its leadership as the world’s largest sukuk issuer in 2017, accounting for US$36.5 billion (RM142.7 billion) of global sukuk issuance. It was followed by Saudi Arabia (US$31.7 billion), Indonesia (US$6.9 billion) and Qatar (US$5.6 billion), RAM Rating Services Bhd (RAM Ratings) said in a statement today. The volume of global sukuk […]