by ANIS HAZIM / pic MUHD AMIN NAHARUL
BURSA Malaysia Bhd is expected to see a total of 37 new IPOs this year amid weak market sentiment.
Its chairman Tan Sri Abdul Wahid Omar said the local stock exchange has witnessed 22 new IPO listings to date.
“Overall, 2022 IPOs have had a high conversion rate and good price performance resulting in attractive returns for investors,” Abdul Wahid said at Bursa’s first half of 2022 (1H22) financial results virtual press conference yesterday.
Bursa’s funds raised through IPOs were up to RM2.1 billion in 1H21 compared to RM0.4 billion last year although trading velocity in 1H22 was lower by 28 percentage points to 33% versus 61% in 1H21.
As economic growth is expected to be supported by firm domestic demand, the chairman foresees that this will potentially lift investor sentiment and boost stock market performance for 2H22.
“As a low beta market, we are naturally a safe haven against the escalating global headwinds,” he said.
Abdul Wahid added that Bursa will keep on investors’ radar and boost their participation in the local stock exchange, especially during this bearish market.
“While Bursa’s mission remains committed to long-term market development through product and ecosystem enhancement, we will also focus on a number of action items to help boost market sentiment and sustain foreign investors’ interest in the short term,” he said.
Moving forward, he hopes that there will be more companies entering the Main Market of Bursa Malaysia Securities Bhd.
Meanwhile Bursa CEO Datuk Muhamad Umar Swift is positive about Malaysia’s capital market despite the global headwinds
“We will see how the balance of the year progresses because when we look at Malaysia, we have growth of around 5.5% (GDP for 2022), and it is a compelling story,” he said.
Additionally, Bursa also intends to continue to enhance the attractiveness of the existing listed issuers through its Public Listed Companies Transformation Programme.