Chairman Datuk Ranjit Ajit Singh said capital-raising activity in several major Economic Transformation Programme-related projects would contribute to the capital market’s growth.
“Sectors such as infrastructure and, oil and gas are likely to source long-term financing through sukuk and corporate bonds.
“Capital-raising activity in equity will remain positive between RM10 billion and RM13 billion while that for the bond markets will be around RM85 billion,” he said during a presentation on the 2014 SC Annual Report here Thursday.
Ranjit said the growth reflected the country’s economic diversity, long-term fundamentals and prudent macroeconomic management.
“In 2014, the overall size of the local capital market grew to RM2.76 trillion from RM2.73 trillion in 2013 while primary market issuances amounted to RM91.9 billion,” he said.
The chairman also said about 24.3 per cent of total equity fundraising or RM5.9 billion was raised through initial public offerings and the balance from the secondary market.
“Capital-raising activity in the corporate bond market remained healthy with RM86 billion while bond yields for 2015 are likely to respond to upward pressures arising from the prospective normalisation of US interest rates.
“This may alleviate any adverse impact from any sell-off by investors and may even attract the flow of new funds into the capital market,” he added.