BN win has extraordinary impact on stock market
KUALA LUMPUR: Barisan Nasional’s (BN) victory in the 13th General Elections Sunday had an extraordinary impact on share prices yesterday on Bursa Malaysia.
Affin Investment Bank head for Retail Research Dr Nazri Khan said the participation of many foreign investors in the local bourse yesterday was a clear signal of their confidence in the Malaysian economy.
“Bursa Malaysia soared to a new high of more than 1,800 points and this clearly showed foreign investors’ confidence in the government’s development projects.
“In fact, Bursa Malaysia received an injection of RM2 billion in foreign funds during the morning session today (yesterday) which is the highest recorded thus far,” he told reporters here yesterday.
The cash market yesterday saw active involvement of foreign investors, with RM13 billion in foreign funds from January to April, compared to RM13.5 billion for the whole of 2012, he said, adding the investors were mainly from Singapore, Japan and China.
Bursa Malaysia soared to a new high of more than 1,800 points and this clearly showed foreign investors’ confidence in the government’s development projects. Dr Nazri Khan, Affin Investment Bank head for Retail Research
Shares of government-linked companies, especially in the construction, banking, oil and gas as well as property sectors, were among the main counters to benefit from the active movement of the main index yesterday, he said, adding the positive trend was likely to continue for several weeks.
“Assuming this momentum is sustained, we are revising upwards the target to 1,830 points by year-end,” he said.
Nazri said the public listing of four companies in the second half of this year – Iskandar Waterfront, expected to raise RM9 billion; AirAsia X; Malakoff and KLCC REIT, expected to be Malaysia’s biggest syariah-compliant REIT – would help to sustain the movement on the main board of Bursa Malaysia.
BN’s win has also had a positive impact on the cash and foreign exchange market while the entry of foreign investors has helped the movement of the ringgit, which rose to a 10-month high of 2.9870 against the US dollar.
Last Friday, the ringgit closed at 3.0315 against the US dollar. — Bernama