Bursa Malaysia Optimistic Of Sustaining Uptrend Momentum

KUALA LUMPUR, April 13 (Bernama) -- Local stock market operator Bursa Malaysia is optimistic the current uptrend on the equity market will be sustained for the rest of this year. Bursa Malaysia Chief Executive Officer Tajuddin Atan said the optimism is based on the strong fundamentals of the local market, which has already attracted more than US$1.52 billion (RM5.9 billion) in foreign investment in the first quarter. (US$1 = RM3.86) He said among the fundamentals are the improvement in oil prices, the ringgit outperforming regional currencies, strong Gross Domestic Product growth projection and rising international reserves. "I believe that it will go up consistently based on the core," he told reporters on the sidelines of the Invest Malaysia forum here Wednesday. He said apart from the fundamentals, the local stock exchange has also been Southeast Asia's biggest gainer due to the attractive valuation of the companies that have attracted "smart money" from fund managers who know where to find the returns. "The valuation of the companies in Malaysia seem to be at a good level for them (foreign investors) to enter, and they will find the best fundamentals and returns in terms of dividend yield," he added. Malaysia's equity market is currently experiencing the longest rally in the world with its benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) having more than doubled from its 2008 lows, driven by a confluence of positive developments which has helped lift investor sentiment. The positives include the rebound in commodity prices and the ringgit versus the US dollar, further policy easing in Japan, Europe and China, and shifting expectations in the pace of interest rate increases by the United States Federal Reserve as well as the return of foreign funds. -- BERNAMA