Highlight Malaysian market conditions gradually improving, says Bursa CEO

by **Cals** Fri 01 Apr 2016, 08:11

Highlight

[size=28]Malaysian market conditions gradually improving, says Bursa CEO

By Ahmad Naqib Idris / theedgemarkets.com | March 31, 2016 : 2:01 PM MYT

KUALA LUMPUR (March 31): Bursa Malaysia Bhd said the Malaysian stock market is seeing a gradual improvement, compared to a year ago, as there has been more certainty in the global economy.

Bursa Malaysia chief executive officer Datuk Tajuddin Atan said although 2016 will remain a challenge for the general economy, there are indicators that conditions are improving.

"We think the market is still challenging in 2016; we think that the volatility will remain. But we are seeing changes in the assumptions that were made earlier, as oil prices rebound and palm oil is expected to recover, moving forward.

"Ringgit is improving. Not withstanding all those things, of late, we see foreign funds coming back, registering inflows of around RM4.8 billion to RM5 billion for the first half of this year," he told the press on the sidelines of the exchange's annual general meeting today.

He added that the foreign inflows are expected to continue in the foreseeable future, and said the trading environment is more conducive now. He said there are still gems in the stock market, especially those that are benefiting from the volatile exchange rates.

For the financial year ended Dec 31, Bursa reported a marginal increase in its net profit to RM198.61 million, compared to RM198.23 million in the previous year, on the back of a 3.5% increase in revenue to RM487.67 million, from RM471.27 million.

Asked on how Bursa is expected to perform for FY16, Tajuddin highlighted that most of the 16 analysts covering the company are expecting the company's revenue to breach the RM500 million mark this year.

He added that the bourse will see further expansion in the current financial year.

"We will be expanding across the group's segments, but more will be invested in derivatives and islamic products. We have a few announcements coming up," said Tajuddin.
[/size]