KUALA LUMPUR, March 21 (Bernama) -- Bursa Malaysia’s benchmark index ended the day marginally higher supported by renewed buying interest in blue-chip stocks, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.29 points to 1,505.45 from Thursday’s close of 1,504.16. The benchmark index opened 0.29 of-a-point lower at 1,503.87 and moved between 1,503.71 and 1,513.23 throughout the day. On the broader market, losers outpaced gainers 513 to 371 while 428 counters were unchanged, 1,125 untraded, and 29 suspended. Turnover rose to 3.43 billion units worth RM4.28 billion from 3.27 billion units worth RM2.64 billion on Thursday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said buying interest was seen particularly within defensive sectors such as utilities, healthcare, and banking during the morning session.
Growth Overview: Malaysia's capital market saw a 9.7% growth in 2024, reaching RM4.2 trillion from RM3.8 trillion in 2023. This growth was driven by:
- Strong local buying interest
- A series of initial public offerings (IPOs)
- Growth in the bond and sukuk market
Bursa Malaysia Performance:
- Market capitalisation of Bursa Malaysia rose to RM2.1 trillion in 2024, up from RM1.8 trillion in 2023.
- The market capitalisation of FTSE Bursa Malaysia KLCI components grew to RM1.2 trillion from RM1.0 trillion in the previous year.
Fund Management Growth:
- Total assets under management (AUM) reached a record RM1.1 trillion, up from RM975.5 billion in 2023.
- The unit trust segment remains the largest source of funds, accounting for 51.1% of total AUM.
Capital Raised:
- Total funds raised in the capital market increased to RM138.9 billion in 2024, up from RM127.7 billion in 2023.
- Of this, RM14.7 billion was raised through the equity market, while RM124.2 billion came from corporate bond issuances.
Bond and Sukuk Market:
- The total bonds and sukuk outstanding rose to RM2.10 trillion from RM2.01 trillion in 2023, primarily driven by continued government bond issuances.
Outlook for 2025:
- The Securities Commission (SC) projects Malaysia’s economy to stay on a steady growth path in 2025, supported by strong domestic demand, especially private sector spending and investment.
- The SC anticipates continued support from government economic plans and the recovery of the Malaysian ringgit, boosting consumer spending.
Risks and Volatility:
- While domestic capital market activity is expected to align with the economy’s momentum, risks could stem from geopolitical instability, regulatory changes, and economic conditions in advanced economies.
- However, the MADANI Economy framework and National Economic Plans are expected to provide support in the medium term.
Summary: Malaysia’s capital market showed strong performance in 2024, bolstered by local institutional investment, strong IPO activity, and growth in bond markets. With a stable economic outlook, supported by the recovery of the ringgit and domestic demand, the market is poised for further growth, although global economic uncertainties may present challenges.
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