KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
As Singapore’s stock listings hit a record low, some Singaporean companies are turning to Malaysia’s booming market for share sales. Malaysia has seen more than 30 initial public offerings (IPOs) in 2024, raising a total of $1.3 billion, outpacing Singapore, which has had only one IPO this year.
Companies such as Grand Venture Technology Ltd. and UMS Holdings Ltd., both Singapore-listed and linked to the semiconductor industry, are eyeing secondary listings in Malaysia. This shift marks a reversal of the traditional trend where Malaysian firms sought equity listings in Singapore for better access to global institutional investors.
According to Raymond Chooi, regional head of equity capital markets at Maybank Investment Bank Bhd, companies are looking to tap into Malaysia’s liquidity pool, citing its proximity and market depth as key advantages.
Malaysia's IPO surge is driven by political stability, eased regulations, and a local stock boom tied to artificial intelligence. The Kuala Lumpur Composite Index has risen 15% in 2024, making it the best-performing year since 2010, while Singapore’s Straits Times Index is up only 11%, trailing behind global and regional peers.
While Singapore has struggled with outdated regulations and poor liquidity, Malaysia’s success reflects its ability to attract small and mid-cap companies, particularly in sectors like technology and life sciences, which face lower valuations and less investor interest in Singapore.
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