KUALA LUMPUR: Bursa Malaysia’s all-time high market capitalisation indicates the government’s reform measures are taking hold and building investor confidence, said second finance minister Amir Hamzah Azizan.
He said increased investor confidence on the back of robust fiscal reforms means that Malaysia still holds “a sweet spot” among regional capital markets.
“This is backed by the country’s strong fundamentals and commitment to implement the Madani economic reform agenda, which in turn is reinvigorating Malaysia’s economy,” he said at the launch of CIMB Securities Sdn Bhd today.
Earlier this week, the FBM KLCI breached 1,600 points, its highest in two years, and achieved an all-time high of RM2 trillion in equities market capitalisation.
Amir said this performance is testament to the strength of the market and Malaysia’s economy.
Among the reform measures are the National Energy Transition Roadmap (NETR), National Industrial Master Plan (NIMP) 2030, the mid-term review (MTR) of the 12th Malaysia Plan and key economic reforms under the 2024 Budget, he said.
“These endeavours span across various government ministries and agencies, reflecting a whole-of-government approach and a collective focus on raising the ceiling and raising the floor, paving the path towards tangible and sustainable economic growth,” he added.
He also welcomed the addition of CIMB Securities to the capital market scene, and expected it to add increased vigour to Malaysia’s financial markets.
This follows the completion of CIMB Group Holdings Bhd’s acquisition of KAF Equities Sdn Bhd in February. CIMB Group, via CIMB Investment Bank, acquired 100% of KAF Equities for RM147.94 million from KAF-Seagroatt & Campbell Sdn Bhd, one of the oldest stockbroking firms in the country.
KAF Equities was then rebranded as CIMB Securities. It will provide a full suite of equities services as well as financing, cash management, treasury and markets, and investment banking advisory.
In late December, CIMB completed the sale of its residual 25.01% stake in CGS-CIMB Securities International Pte Ltd and 25% shareholding in CGS-CIMB Holdings Sdn Bhd to CGS International Holdings Ltd, formerly known as China Galaxy International Financial Holdings Ltd.
CIMB said it will receive estimated gross proceeds of RM780 million from the sale of both stakes, bringing total proceeds for the sale of its 100% original stockbroking business since 2018 to about RM2.5 billion.
Source: bursas-all-time-high-market-cap-reflects-investor-confidence-says-amir – FMT
