‘Local market should sustain bull run’

KUALA LUMPUR: Bursa Malaysia Bhd CEO Datuk Seri Tajuddin Atan foresees the local stock market will sustain its bull run, which has seen the FBM KLCI more than double since the global financial crisis in 2008.
“I surely hope we can maintain the bull run. Based on our fundamentals and market resilience, I think there are still gems in some companies benefiting from the changes of exchange rates,” he told reporters here yesterday after the company’s AGM.
While acknowledging that market volatility will remain, he said all economic indicators, such as the rebound of oil prices and the ringgit, have pointed to an improved market environment, which augurs well for the trading of stocks.
“When you look at price and value, we’re positioned quite well simply because of our strength and the resilience of our market...I think things are improving from the investing perspective, trading environment is more conducive given that the changes that we’re seeing,” Tajuddin said.
The local bourse is also supported by intensified foreign buying in the past few weeks and this positive trend is expected to continue going forward, he said.
“Foreign funds is coming back with close to RM4.8 billion to RM5 billion for the first half of the year,” he noted.
Commenting on Bursa’s financial performance in 2016, he expects the company’s operating revenue to surpass the RM500 million mark this year on the back of improving market conditions.
“Our revenue should be able to surpass half a billion ringgit this year,” he said.
Last year, Bursa’s operating revenue came in at RM487.7 million, a 3% increase compared with RM471.3 million in 2014.
Moving forward, he said Bursa will focus on expanding its derivatives and Islamic markets.
“Wait for announcements, we’ve a few announcements coming up,” he added.
To sustain the growth of Bursa, he said the two main elements are corporate governance and strong sustainability.