SINGAPORE: Maybank Kim Eng Group, the investment banking arm of Maybank, is positive over the Malaysian equity market, with an expectation of the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) hitting the 1,800-level this year.
Chief executive officer Datuk John Chong said the market momentum is supported by fundamentals and attractive valuation.
“The FBM KLCI index could hit the 1,800-level earlier with momentum picking up and based on an estimated RM3.1bil in volume of transactions in the equity market since the beginning of this year,” he added.
He said this during a media briefing today in conjunction with the Invest Asean Singapore Conference here today.
He said the positive momentum in the Malaysian equity market is also in line with the upside in the regional Asean market.
With Asean’s economy expected to slowly pick up in 2017, Chong said he believed the outlook of its investment banking business will improve in tandem.
“We expect to see increased capital market activities this year driven by stronger equity markets, increased infrastructure financing and generally pent up capital raisings due to a relatively subdued 2016.
“Many corporates held back on capital raising last year due to market uncertainty. But, we are starting to see many of these companies now reengaging on returning to tap both debt and equity markets,” he added.
Since the beginning of 2017, Maybank Kim Eng, he said, had been involved in three major Initial Public Offerings (IPOs) across the region, namely Malaysia’s Ecoworld International’s (US$586mil), Singapore’s Viz Branz Holdings (US$160mil) and Thailand’s TPI Power of about US$500mil.
Chong said Maybank Kim Eng’s pipeline of deals across the region remains robust and healthy with a few more expected.
Harmeet S. Bedi, chief executive officer of Maybank Kim Eng Singapore expects the Singapore market to hold the same promise.
“We are looking to grow our debt market business which did well last year, both in project financing and syndicated loans.
“On the equity capital market front, we are confident of building on the momentum of our recent successes of having executed two rights issues and an IPO in 2016,” he told a media briefing.
In 2016, Maybank Kim Eng ranked among the top investment banks in Asean.
This year’s Invest Asean Singapore conference has brought together thought leaders to provide insights into the geopolitical, business and technological trends that could shake up the regional landscape.
Held at the Ritz Carlton Singapore, the event has attracted over 800 delegates.
A total of 49 corporates from Thailand, Malaysia, the Philippines, Indonesia, Singapore and Vietnam with a total market capitalisation of US$129.7bil and 126 funds across the globe totaling US$18 trillion in assets under management are participating in the two-day conference. - Bernama
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