FOREIGN SHAREHOLDERS TO REMAIN IN LOCAL BOURSE

KUALA LUMPUR, March 11 (Bernama) -- Foreign shareholders are expected to
remain in the local market due to its stability despite the ongoing global
financial uncertainty, Securities Commission (SC) market supervision executive
director, Ranjit Ajit Singh, said Wednesday.

He said the increase in the sales of shares by foreigners was typical of a
market where there was a lot of deleveraging and repatriation of funds,
especially in times like this.

"Malaysia is no different in this situation and in fact, the local market
had declined much less than others in the region.

"There seems to be some stability (in the market), an indication that some
foreign shareholders will remain. Typically, of course there will be the
short-term trading," he told a media briefing on SC's annual report 2008 here
Wednesday.

The country's level of foreign shareholding currently stood at 16.6 percent,
down from over 19 percent in early 2008.

Ranjit said in the last 10 years, the lowest level of foreign shareholding
was 15 percent in 2002.

Meanwhile, SC chairman, Zarinah Anwar, said it would continue to
sustain confidence through proper regulation and surveillance in promoting
foreign shareholding and investment in the market.

On the issue of corporate bond market, Zarinah said, it was an important
avenue for fund raising and it would be at a healthy level this year.

She said the SC has received five applications for initial public offerings
(IPOs) this year and had approved only one, adding that the decline in IPO was
reflective of global trend.

Zarinah said in its bid to mitigate immediate effects of the economic
downturn this year, the SC has outlined its focus on investor protection to
strengthen confidence and would facilitate greater access to capital market.

"Besides establishing the Audit Oversight Board due this year, the SC has
also reposition the Mesdaq Board as a sponsor-driven fund-raising platform for
local and foreign companies in all sectors, by end-April," she said.

She said the Main Board and Second Board would be unified board, entry
requirements streamlined and listing of special-purpose acquisition companies
would be allowed to promote private equity investments.

-- BERNAMA