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KUALA LUMPUR (December 8): The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index would have fallen 11% through November 2020, without the support of three health care counters, said Bursa Malaysia Bhd Chairman Tan Sri Abdul Wahid Omar.
FBM KLCI’s three health care counters are Hartalega Holdings Bhd, IHH Healthcare Bhd, and Top Glove Corporation Bhd.
Abdul Wahid said that thanks to health stocks, the FBM KLCI only decreased by 1.6% until November 2020, and Bursa Malaysia became one of the best performing emerging markets (EM) in ASEAN, in addition to the Hanoi Stock Exchange.
“The Healthcare Index had risen 220.9% as of November 2020 … So if we remove the Healthcare performance, especially the glove counters, the number will be quite different, which means that the FBM KLCI it would have fallen 11% year to November 2020, ”he said.
Abdul Wahid said this at the PowerTalk Webinar with the theme “Moving Forward: Banking and Capital Market Trends” hosted by the World Islamic Economic Forum (WIEF) and the Securities Industry Development Corporation (SIDC) here today.
In November-December, Abdul Wahid said glove accountants had seen their share prices normalize after the sector’s price-to-earnings (P / E) ratio fell 15 times below its 45-fold peak. in August 2020.
In the future, however, he expected the demand for healthcare counters to continue to grow with or without Covid-19 due to increased hygiene awareness.
“Personal Protective Equipment (PPE) manufacturers, including glove manufacturers, may not see the same type of volume seen in previous months, but due to increased hygiene awareness, per capita glove usage and other EPI products would be higher compared to the pre-Covid-19 era, “he said.
In addition to health care counters, Abdul Wahid said the Technology Index, which soared 72%, as well as the Industrial Products and Services Index (up 4.7%), were the only two of the 13 indexes. Bursa Malaysia’s sectors that posted positive growth from January to November. 2020.
In summary, the KLCI FBM rallied from a low of 1,219.72 on March 19, 2020 to a year-to-date high of 1,628.26 on December 3, 2020.
Meanwhile, Abdul Wahid said Bursa Malaysia and brokers also benefited from the doubling of business volume during the pandemic.
He said that in the first 11 months of 2020, the average daily value in Bursa Malaysia increased by about 114% to RM4.1 billion from about RM1.9 billion in 2019.
“We also saw significant retail participation, particularly by younger investors between the ages of 26 and 45, who represented around two-thirds of market participants.”
From the perspective of online operations, he said that 78% of retail operations were conducted online, which represents 46% of general operations, he said.
“This is very encouraging and something we have not seen before,” he added.
To ensure the sustainability of the high retail engagement seen in 2020, Abdul Wahid said Bursa Malaysia will continue to work closely with brokers and make account opening as easy as possible.
Data from Abdul Wahid’s presentation slides showed that there were 18 new listings in Bursa Malaysia for the period from year to October 2020, raising total funds of RM5.99 billion compared to 30 new listings with RM6.66 billion. of funds raised in 2019.
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