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Market Daily Report: Bursa Malaysia Ends Higher On Positive Sentiment, CI Up 0.83 Pct

KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units
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New Bumiputera Equity Threshold for ACE Market IPOs Expected

 ACE Market IPOs may soon require bumiputera equity allocations in line with Main Market, according to industry sources.

Regulators, including the Securities Commission Malaysia and Bursa Malaysia, are reportedly considering a 12.5% bumiputera equity threshold for ACE Market IPOs, matching the Main Market's public spread requirements. This would require ACE Market applicants to allocate 12.5% of their enlarged share base to Ministry of Investment, Trade and Industry (MITI)-approved bumiputera investors at the time of listing. Currently, ACE Market companies meet bumiputera requirements only after achieving Main Market profit thresholds or listing for five years.

In addition, regulators are said to be expanding the recognition of bumiputera shareholders to include those holding less than half of the company's enlarged share base, broadening eligibility for fulfilling the bumiputera quota.

While the new rule may increase IPO costs, it aligns ACE Market requirements with broader national targets, such as those in Malaysia's Bumiputera Economic Transformation Plan 2035, which aims to reach a 30% bumiputera equity threshold by 2035. In 2020, bumiputera equity ownership stood at 18.4%.

With recent ACE Market listings showing muted responses to post-IPO special issues, a pre-listing requirement may encourage greater upfront compliance. For instance, recent placements by UMedic Group and ECA Integrated Solution saw acceptance rates of only 1.6% and 7.41%, respectively, for their bumiputera special issues, compared to higher rates for those that incorporated bumiputera allocations during IPO.

These changes reflect ongoing efforts to enhance bumiputera participation in Malaysia's capital markets, though the details and finalization of the requirements remain pending official confirmation.

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