SME Magazine Section: This Week's Focus Ad Value: MYR 12,000 19-Apr-2021 Size : 2FPFC PR Value: MYR 36,000

A Recovery For Malaysia's Equity Market?

0 OCC^OlfCOU mt) Malaysia's main equity gauge is now the H KCUU VCK I lUK Cheapest in the region while the dividend nilCMfl'。yield of 3 percent is the highest among 11IHLH I vIH > major Asia Pacific indexes after Sing叩。「e. - IITII Top Glove Bhd and Supermax Bhd are tHIJITU among the top three stocks on the buy list of :2^3 1 * foreigners this year through 2 April, attracting IHQQUFT r net inflows of RM1.4 billion (US$340 million), 11 initllU I • [according to CGS CIMB Research. Global funds bought a net RM189.9 million of verseas investors have been i Press Metal Aluminium Holdings Bhd, the pulling out of Malaysian equities brokerage said in a report. for 20 straight months. March Foreigners becoming net buyers would could mark the turn of the tide. ；mark a rare event for a market that saw Foreigners have poured a net US$97 million global funds pull a record US$5.7 billion into local stocks this month through March last year. Thafs as political upheaval 22, while withdrawing a combined US$1 combined with the pandemic to sour billion from four other Southeast Asian sentiment even as local investors turned markets tracked by Bloomberg. Malaysian glove makers into one of Asia's The inflows come as valuation of hottest pandemic trades. SME Magazine Malaysia Section: This Week's Focus Ad Value: MYR 12,000 19-Apr-2021 Size : 2FPFC PR Value: MYR 36,000

A Recovery For Malaysia's Equity Market?

0- THIS WEEK,S FOCUS

“There's a thematic play for Malaysia ：bluechips like casino operator Genting Bhd, in a sense that it has underperformed/' banks and utilities have led the gains as new Geoffrey Ng, director at Fortress Capital ；infections slow and vaccines are rolled out. Asset Management Sdn Bhd told Shares of glove makers were one of Bloomberg. uPart of why there was so Asia's hottest pandemic trades for much of much foreign selling earlier was because of ■ 2020 before the rollouts of vaccines around political uncertainty, which is fading now.,, the world weakened their appeal and Malaysia in January declared a state became targets of short sellers. The three of emergency to tackle surging coronavirus i biggest glove stocks, including Top Glove, infections. That allowed Prime Minister Tan :are the worst performers in Malaysia's Sri to suspend parliament benchmark equity gauge this year. until the emergency ends in August, amid Pressure on Top Glove deepened calls for immediate snap polls from the late last month when the US Customs and ruling coalition's largest party. Border Protection ordered personnel at Muhyiddin has said he will hold an US ports of entry to seize its gloves made election as soon as the pandemic is brought in Malaysia over allegations of forced under control. Currently, Malaysia has no :labour. In contrast, Press Metal's stock strict restrictions on activities like dining out, ；is the top gainers on the main index as but inter-state travel is still banned. :its focus on ESG has made it a favourite among investors. PUllinG OUT? Foreign shareholdings in The KLCI gauge climbed 0.5 percent Malaysian companies stood at 20.4 percent :at the close on Wednesday, halting a three- at the end of February, near the lowest in day decline. more than a decade, according to CGS Even so, Credit Suisse Group AG CIMB Research. Ending March with a i cut Malaysia to underweight from market positive number would snap the longest weight. The bank downgraded developing run of foreign monthly withdrawals since at stocks due to a stronger US dollar, least 2009. slow rollout of vaccines in the region The FTSE Bursa Malaysia KLCI Index, ：and political risks in some commodity­ down almost 5 percent from a December exporting markets. peak, is up 1.6 percent in March, poised 11 It's just one month of data so we have for its best month this year. Beaten-down to see if this trend continues,“ said Ng.

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