2017 A More Positive Year for Economy -- MIDF

KUALA LUMPUR, Feb 20 (Bernama) -- Malaysian Industrial Development Finance Bhd (MIDF) expects a more positive year for the economy with a fairly more active initial public offerings and bond market. Its Group Managing Director, Mohd Najib Abdullah, said alot of market uncertainties and global environment last year were expected to be resolved early this year. "I think we will have a better year. As far as our review of the market, 2017 would be a much positive one for the economy and also in terms of corporates," he told reporters at MIDF media luncheon here Monday. Mohd Najib said the expectation was also bolstered by the number of mandates as well as deals in the pipeline it was currently pursuing. MIDF also expected a better loan portfolio growth this year, in tandem with better numbers forecast by most banks, he said. "For the bond market, we are certainly looking for mandates for fund raising. About 20 per cent more than last year," he said. The bank also targeted the FBM KLCI to hit 1,850 points by year-end. In terms of foreign fund, Mohd Najib said, it was fairly nimble. "Sometimes they're in, sometimes they're out. Very fluid. Doesn't mean when they're out of the stock market, they are out of the country. They may switch from equity to cash to fixed income. "I wouldn't use foreign participation in the stock market as a gauge of the wealth or health of the market," he said. Mohd Najib said MIDF was not considering to pursue the proposed merger with Asian Financial Bank Bhd but was eyeing opportunities for merger and acquisition exercise. "We took a look at it and we felt that from our investment perspectives, it wouldn't be fair for us," he said. On Sime Darby Bhd's intention to split its businesses and listed them separately, Mohd Najib said, the move was good for the conglomerate and its shareholders. It would provide focus for the company to look out at areas or industries they it was interested to invest in. -- BERNAMA