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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Tiny Singapore Sees Frenzy in Global Deals Amid Investor Confidence Surge

Singapore has emerged as a hotbed for mergers and acquisitions this quarter, driven by renewed investor confidence and the island nation's stable economic and political landscape. The recent flurry of activity includes significant investments and strategic transactions that underscore Singapore’s position as a hub for Southeast Asia.


Key Highlights

  • Major Deals: A consortium led by KKR & Co and Singapore Telecommunications Ltd. has committed S$1.75 billion (RM6.1 billion) to ST Telemedia Global Data Centres, outbidding other global investors. Allianz SE is in talks with Income Insurance Ltd. for a potential tie-up, and Hillhouse Investment is negotiating the acquisition of Dulwich College International’s schools.

  • Market Sentiment: Bank of America Corp Singapore country head Martin Siah highlights Singapore as the “centre of gravity for M&As in Southeast Asia.” The sentiment towards large, transformative inbound M&A in Singapore is more positive than in recent years, boosting confidence for the latter half of 2024 and into 2025.

  • Deal Value Surge: Data compiled by Bloomberg shows the value of deals involving Singaporean firms has surged 102% year-over-year for the second quarter, reaching US$23.8 billion since April.

  • Strategic Transactions: The transactions are not just numerous but strategically significant, establishing Singapore as a central hub with unprecedented inbound foreign direct investment from global names.

  • Investor Confidence: The deals, many of which were in progress since last year, reflect a long-term positive view of the macroeconomic situation. Valuation gaps have narrowed, and there is pent-up demand from buyers after a few quiet years in the market.

  • Economic Outlook: Economists forecast Singapore’s economy to expand by 2.4% in 2024, according to the Monetary Authority’s latest survey. The Straits Times Index has risen more than 8% from an October low, indicating a bullish market sentiment.

  • Corporate Governance: Singapore’s strong corporate governance and predictable political environment continue to attract investors, maintaining its competitive edge.

Recent Significant Transactions

  • Healthcare: Ashurst ADTLaw advised Intermediate Capital Group on its investment in Alfa Medicus Pte, a private surgery operator, and Carousell's acquisition of LuxLexicon Pte, a luxury bag reseller.

  • Financial Sector: Oversea-Chinese Banking Corp is nearing full control of Great Eastern Holdings Ltd with a S$1.4 billion offer.

  • Energy: Shell Plc is acquiring Pavilion Energy Pte from Temasek Holdings Pte.

  • Environmental Sector: France’s Séché Environnement announced the purchase of ECO Industrial Environmental Engineering Pte for S$605 million.

What Investors Can Do

  1. Evaluate Opportunities: With Singapore positioned as a hub for strategic M&A activities, investors should closely monitor the market for opportunities in key sectors such as technology, healthcare, finance, and energy.

  2. Long-term Investments: The positive macroeconomic outlook and political stability make Singapore an attractive destination for long-term investments.

  3. Diversify Portfolios: Consider diversifying portfolios to include Singaporean assets, benefiting from the country’s strong governance and robust economic environment.

  4. Stay Informed: Keeping abreast of regulatory changes and economic policies in Singapore will be crucial for making informed investment decisions.

Singapore’s emergence as a focal point for M&A activity underscores its strategic importance in Southeast Asia, offering investors robust opportunities in a stable and thriving market.

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