KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
South Korean equities are attracting global capital as the Kospi surges 33% YTD, making it the best-performing major market of 2025. The rally is being fueled by bold regulatory reforms aimed at tackling the long-standing “Korea discount” and strengthening minority shareholder rights.
Key Drivers:
Corporate Governance Reform:
July saw lawmakers approve pivotal legal changes making boards accountable to all shareholders.
Upcoming Aug 4 vote to introduce a cumulative voting system, allowing minority shareholders to pool votes and secure board representation.
Proposal to limit major shareholders’ control over audit committees is also on the agenda.
Treasury Stock Debate:
Authorities are considering mandating cancellation of treasury shares, which chaebols have used to consolidate control without increasing actual ownership.
Options range from phased cancellation to a stricter six-month retirement requirement.
Treasury stock reform is viewed as critical to achieving the “Kospi 5000” goal by boosting ROE and valuations.
Foreign Inflows & Sentiment:
Overseas funds poured US$3B into Korean stocks in July, more than the previous two months combined.
Global banks (Goldman, JPM, Citi, Morgan Stanley) have all upgraded Korea since June.
Korea’s market cap has surpassed US$2 trillion for the first time in three years.
Comparison to Japan:
The reforms mirror Japan’s governance overhaul that triggered its own equity boom. President Lee Jae Myung has made corporate governance a central economic priority, signaling long-term policy commitment.
Risks & Market Expectations:
With valuations running ahead of fundamentals, delivery on reforms is critical.
About 77% of listed firms warn further commercial code changes may hurt business growth.
Market reaction to the Aug 4 vote and any treasury stock decision will be a key short-term catalyst.
Big Picture:
Korea’s equity market is undergoing a structural shift, with governance reforms driving both domestic and foreign re-rating. However, the rally has set a high bar for execution, and failure to deliver substantive legislative and corporate changes could trigger a pullback.
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