1MDB Issue Will Not Dent Investors Confidence On Local Bourse – Tajuddin

1MDB Issue Will Not Dent Investors Confidence On Local Bourse – Tajuddin

KUALA LUMPUR, July 15 (Bernama) — Bursa Malaysia does not expect the 1Malaysia Development Bhd’s (1MDB) issue to dent investors confidence on the local bourse, its Chief Executive Officer, Datuk Tajuddin Atan said.

The Composite Index (CI) has been largely affected by the Greek debt settlement issue rather than the domestic front sentiment.

“Somehow rather, the externality issue seems to be a factor that has been considered more in this area. The question about Greece has been on people’s mind for quite some time,” he said.

Tajuddin said the contingent effect on Greece in Europe would have a spillover effect in the growth of Asia markets.

Amid weak external sentiments recently, the CI fell 18.55 points to 1,691.92, its lowest so far this year.

At 5pm today, it finished at 1,727.26.

Elaborating on the 1MDB issue, Tajuddin said it was more of a regulatory issue.

“From the aggregated perspective combined with fundamentals, it has not impacted the confidence or integrity of the market,” he told reporters after announcing Bursa Malaysia’s first half financial results here Wednesday.

Moving forward, he said Bursa Malaysia would intensify efforts in promoting sustainable practices in the marketplace.

“Since the launch of our Environment, Social and Governance (ESG) index in December last year, we have committed to the United Nations’ Global Sustainable Stock Exchanges initiative, whereby voluntary signatories have committed to promote sustainability performance and transparency in capital markets.

“This is the year we step up and deepen our market engagements on sustainability to determine the best way forward towards integrating ESG matters into all areas of business,” he said.

Meanwhile, he said the local exchange operator was targeting 12 to 13 initial public offering (IPO) applications in the second half of this year.

“I agree it will be slower compared with last year, but the target of 12 to 13 IPOs this year would be a realistic number.

“There are already five IPOs in the pipeline, and we are in the process of acquiring more,” he added.