‘INDEX TO TRADE ABOVE 1,700 IN 2019’
FBM KLCI to be supported by strong domestic fundamentals, says Tajuddin
THE benchmark FTSE Bursa Malaysia KLCI is expected to trade above 1,700 points next year on the back of strong domestic fundamentals, said Bursa Malaysia Bhd chief executive officer Datuk Seri Tajuddin Atan.
He said the market would also monitor the external environment, including the United States-China trade war and US interest rate movement.
“The year 2019 is when people expect the market to be a little bit more challenging. But rest assured, as I see it, our fundamentals are quite strong.
“Of course, there is a headwind. If there is any movement, maybe there will be a slight correction to that level,” he said after the Investor Relations Awards 2018 organised by the Malaysian Investor Relations Association, here, yesterday.
Earlier in his speech, Tajuddin said investors were looking to achieve something beyond monetary gains with their investments or, at the very least, to ensure their investments did not support activities that were against their beliefs and values.
Against this backdrop, he said, businesses today must be clear about their core beliefs and value systems, and communicate them in a way that would resonate with their investors.
“This is where investor relations handled with consistency and honesty can turn investors into advocates and resources that help the company grow, for investors have vested interest to see the business they invest in succeed,” said Tajuddin.
He pointed out that the environmental, social and governance (ESG) disclosures on nonfinancial factors such as corporate governance environment issues were becoming an increasingly important consideration for investors.
“This forms part of the honest and transparent communication that investor relations professionals should effectively articulate to win their confidence and trust,” he added.
Tajuddin pointed out that Bursa Malaysia held an ongoing agenda to encourage public listed companies to adopt, and report on, sustainability, corporate governance and transparency, which started with the introduction of corporate social responsibility disclosures in annual reports in 2006.
Meanwhile, winners at the Investor Relations Awards include Serba Dinamik Holdings Bhd (Best Investor Relations for an IPO Company in 2017), Malayan Banking Bhd (Best Quality of Annual Reports/Formal Disclosure) and Hong Leong Bank Bhd (Most Improved Service from Investor Relations Team).