Page 87 - SC Annual Report 2018 (ENG)

Securities
Securities
Commission
Commission
Malaysia
Malaysia
ANNUAL
ANNUAL
REPORT
REPORT
2018
2018
Chart 6
Global capital markets ended weaker in 2018, especially for equities

MSCI World versus MSCI Emerging Markets JP Morgan Government Bond Index (GBI)
Global versus Emerging Market yields
MSCI World 2.0
115 8.1 JPM GBI EM (LHS)
MSCI EM JPM GBI Global (RHS)
7.9
110 1.9
7.7
105
45 7.5 1.8
1 Jan 2018: 100
40 100 % 7.3 1.7 %
35 % 95 7.1

90 6.9 1.6

25 85 6.7 1.5
20 80 6.5 1.4
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
15 Jul-18 Jul-18

Source: Bloomberg, Thomson Reuters Datastream

MALAYSIAN CAPITAL MARKET Given the challenging global environment and
DEVELOPMENTS IN 2018 ongoing domestic policy reforms, the Malaysian
capital market witnessed a more moderate level
The Malaysian economy grew steadily in 2018, driven of fundraising activities during the year with total
by sustained resilience in private sector activities amid funds raised amounting to RM114.6 billion in 2018
a challenging global environment. Against this (Chart 7). A total of RM105.4 billion was raised
backdrop, the Malaysian capital market continued to in the corporate bond and sukuk market, while
play a vital role in financing the domestic economy. RM9.2 billion was raised via the equity market.
The total size of the capital market amounted to Total bond and sukuk issuance exceeded the five-
RM3.1 trillion in 2018, retaining above the RM3 trillion year average of RM97.7 billion with new issuances
mark (Chart 7), with debt securities outstanding rising mainly in utilities and financial services. Sukuk made
to RM1.4 trillion, while equity market capitalisation up 68.9% of total issuances in 2018. Meanwhile,
contracted to RM1.7 trillion. Overall, the non-resident out of the total funds raised in the equity market,
portfolio outflows amounted to -RM33.6 billion in RM0.7 billion was raised via Initial Public Offerings
1
2018 (2017: inflow of +RM2.8 billion) in tandem (IPOs) with 21 new equity listings in the primary
with regional trend, albeit at a lesser degree. A sum market, and RM8.5 billion via secondary fundraising.
of 65% of the net outflow was from the bond In 2018, two companies were listed on the Main
market at -RM21.9 billion, while the remainder of Market, nine companies on the ACE market and the
-RM11.7 billion was from the equity market. remainder on the LEAP Market.

1 Total number of IPO listing for 2018 was 22, with one IPO in a form of ‘proposed listing by way of introduction of the entire issued
share capital’ in the LEAP market, without raising funds.

PART 4 »» CAPITAL MARKET REVIEW AND OUTLOOK | 77
PART 4 »» CAPITAL MARKET REVIEW AND OUTLOOK | 77

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