KUALA LUMPUR (July 30): Bursa Malaysia-listed companies' share performance is expected to be better than those in Asian stock markets on Malaysian government policies and as external factors remain stable, the Ministry of Finance (MoF) said.
The MoF said in Parliament today that to ensure a sustainable Malaysian stock market, the government has taken several steps including practising investor-friendly policies, allowing foreign direct investment besides supporting free trade investment and rule of law.
According to the MoF, the government has also adopted efficient, accountability and transparency principles, and undertaken a comprehensive review of the nation's fiscal policy.
The MoF said this today in a written reply dated July 26, 2018 to Mersing MP Datuk Dr Haji Abd Latiff Ahmad's query. Abd Latiff wanted to know the reason for the higher share sales on Bursa Malaysia recently and what is the government's action to attract investors to buy shares on Bursa Malaysia and to curtail the outflow of funds from Malaysian markets.
According to the MoF, the decline in the Malaysian stock market was due to factors including trade tension between the US and other nations like China, Canada, Mexico and European countries.
The MoF said other factors include higher US interest rates, strengthening US dollar, political uncertainty in Italy and Germany, and the decline in world commodity prices.
Looking back at Bursa Malaysia, the MoF said the FBM KLCI had outperformed Asian stock markets. The MoF said the KLCI had increased 4.03% between June 22, 2018 and July 24, 2018.
"Compared to the regional stock markets, Malaysia's stock market performance for [the] one-month period is better against Nikkei 225 (+0.00%), Shanghai SE Composite (+0.53%), Kospi Index (-3.25%), S&P/ASX 200 Index (+0.62%), Straits Times Index (+0.52%), SET 50 Index (-2.27%), Hang Seng Index (-2.27%) and Jakarta Composite Index (+1.92%)," the MoF said.