Equity market records net funds inflow of RM6.3 bln as of July - Abdul Wahid

KUANTAN: The domestic capital market still remains orderly with the equity market recording net funds inflow amounting to RM6.3 billion as of July 2022, despite the uncertain environment recently, said Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar.

He said Malaysia also has expanding domestic capital market with a market capitalisation of RM1.79 trillion or equivalent to 116 per cent of gross domestic product (GDP) as of end-2021.

According to him, the continuous development of the local capital market has provided wider opportunities for alternative savings and investment instruments to the retail segment which has enabled the public to also invest in the capital market.

"In line with Malaysia's development towards a high-income nation, the domestic capital market should encourage more retail participation to catalyse economic growth and support long-term growth and the nation's sustainability," he said.

He said this in his speech at the Pahang 'Karnival Saham' together with Bursa Malaysia at Yayasan Pahang Complex here, today, officiated by Menteri Besar Datuk Seri Wan Rosdy Wan Ismail. Also present was Deputy Finance Minister 1 Datuk Mohd Shahar Abdullah.

Meanwhile, Abdul Wahid said there are a total of 34 public listed companies with activities in Pahang, involving a market capitalisation of RM108.5 billion or 7.0 per cent of GDP.

"For the retail segment, in general, the average daily value among retail investors showed a slight decline from RM1.6 billion in 2020 to RM1.3 billion in 2021 with the involvement of Pahang still at a low level," he said.

"Hence, the programme today is part of our efforts to raise awareness among the community in Pahang on early investment, thereby increasing the number of retail investors in the capital market," he said.

He added that there are several major initiatives that have been implemented to raise public awareness on capital market investment, among them, through Bursa Marketplace which features a few key investment instruments to learn the fundamentals of investment.

Additionally, there is also Bursa Academy which is an e-learning platform offering knowledge covering three markets -- equity, derivatives and Islamic capital market.

Elaborating, he said the uncertainty in the global market due to the COVID-19 pandemic had propelled investment fraud schemes and the emergence of uncertified 'investment experts' which are seen as having the potential to cause financial threats to new investors.

"It is important for investors to have (financial) knowledge as well as the right investment tools to avoid from becoming a victim of these investment scams," he said.

Meanwhile, Wan Rosdy when met by reporters said he hoped that residents in Pahang are smart to make decisions to invest in the right places.

"This programme is very good in that it provides the public exposure to investment, and what is important is to have the knowledge to invest...whether in Bursa Malaysia or Amanah Saham Bumiputera and Tabung Haji," he said.

-- BERNAMA