KUALA LUMPUR: The 17-fold jump in net foreign buying on Bursa Malaysia in the week ended October 4, following a three-month lull, is indicative of greater interest in the Asean region and the local bourse's ability to outperform the region in a volatile environment.
"Malaysia is experiencing a revitalisation in investment that, coupled with resilient consumer spending, suggests real gross domestic product growth will likely pick up to around 5.4 per cent in 2014, from the 4.7 per cent estimated for 2013, once external demand for exports starts to pick up," said RHB Research Institute director Lim Chee Sing.
He said this augurs well for corporate earnings, with projections showing normalised net earnings per share for the FTSE Bursa Malaysia KLCI benchmark as he picks up to 6.6 per cent in 2014 from the 5.0 per cent growth estimated for 2013.
"Given expectations of a volatile market backdrop in the fourth quarter, investors should capitalise on market opportunities to rebalance their portfolios. While more value could be found in the mid- to smaller-cap stocks, investors should not ignore the bigger-cap stocks with sound fundamentals and accumulate these on weaknesses.
"By sector, our key overweights are in oil and gas and construction, although we also like some property and banking stocks on weakness," Lim was quoted as saying on Bursa's website yesterday.
Bursa Malaysia chief executive officer Datuk Tajuddin Atan echoed Lim's sentiments.
"This is indeed an exciting time for Bursa Malaysia. Bucking the trend in Asean and the return of foreign interest are strong indications for our marketplace. A number of initial public offerings (IPOs) are being lined-up in the fourth quarter, beginning with the listing of Westport Holdings, Bursa Malaysia's largest IPO listing for 2013," said Tajuddin.
He said Bursa is embarking on its global capital market roadshow by taking Invest Malaysia to Hong Kong this month, followed by New York, Boston and San Francisco early next month.
These roadshows are designed to showcase the diverse and unique investment opportunities in Bursa Malaysia.
Invest Malaysia Hong Kong 2013 (IMHK 2013) is the fourth consecutive capital market roadshow to Hong Kong, said RHB Investment Bank chief executive officer/managing director Mike Chan.
"The growth of multinational companies on Bursa Malaysia has earned the exchange the distinction of being Asean's multinational marketplace, as it is home to a broad range of Malaysian companies that are tapping the growth of Asean and Asia," Chan said.
IMHK 2013 will showcase a number of top-performing Malaysian public-listed companies, both large and mid-cap, to Hong Kong fund managers, Chan said.