Bursa Malaysia expected to onboard 50 new listings this year, FBM KLCI to reach 1,800 points

KUALA LUMPUR: Malaysia’s equity market delivered a commendable performance in 2024, earning a solid grade close to an ‘A’, with several key milestones achieved during the year, laying the foundation for the main index to reach 1,800 points this year, with 50 new listings anticipated.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) ended 2024 with a 12.9% increase over the 52 weeks, making Bursa Malaysia the second-best performer in Southeast Asia, after Singapore.

In addition, the exchange recorded its highest-ever issuance of initial public offerings (IPO) and saw its market capitalisation exceed the RM2 trillion mark for the first time in May.

Focusing on individual stocks, 99 Speed Mart Retail Holdings Bhd surged 14% in its market debut, marking the largest IPO in seven years since Lotte Chemical Titan’s listing in 2017. This was Bursa Malaysia’s 34th IPO of the year, solidifying Malaysia’s position as Southeast Asia’s most active IPO market in 2024.

The most-traded stocks on Bursa Malaysia for the past 12 months include MY EG Services, Velesto Energy, Hong Seng Consolidated, Top Glove Corporation, and TWL Holdings, according to data from Bloomberg.

Bursa Malaysia achieved a significant milestone in 2024, with 55 IPO listed on the exchange – the highest number of listings recorded in the past 19 years, exceeding the initial target of 42 IPO.

These 55 IPO collectively raised RM7.42 billion in proceeds, marking a 107% increase from the previous year, and contributed a total market capitalisation of RM31.37 billion to Bursa Malaysia based on their IPO prices, reflecting a 130% growth compared to 2023.

This remarkable performance represents a 72-% increase over the 32 IPOs recorded in 2023.

The FBM KLCI reached its lowest point of the year at 1,453.10 on Jan 2, 2024, the first trading day of the year, and peaked at 1,678.80 points on Aug 30, 2024, a level not seen since December 2020.

The exchange’s six-day winning streak from Dec 23 saw global funds net buy Malaysian equities worth US$600,000 on Dec 30, the highest in one month, before the index closed the year higher by 0.28% or 4.65 points to 1,642.33.

Looking ahead, UOB Kay Hian Wealth Advisors’ head of investment research Mohd Sedek Jantan said the company has forecast the FBM KLCI to reach 1,800 points this year.

RHB Investment Bank Bhd projects the market bellwether to reach 1,820 points by the end of 2025, supported by a strong domestic macroeconomic outlook and improved corporate earnings.

Affin Bank Bhd anticipates the FBM KLCI to hit 1,850 points this year compared to an estimated 1,650 points for 2024, driven by sustained corporate earnings growth, while MIDF Research expects the key index to surpass 1,800 points in 2025, citing continued earnings growth.

However, mounting trade uncertainties and potential US policy shifts under President-elect Donald Trump could contribute to near-term uncertainty in the global equities market.

On IPO issuance, Bursa Malaysia is set to list 50 IPO this year, reviving the high level of public participation that was seen two decades ago. – Bernama