KUALA LUMPUR: Citi, which launched its stockbroking company CitiGroup Global Markets Malaysia Sdn Bhd (CGMM) yesterday, aims to be the third largest foreign broking company in the country in the next two years.
Besides Citi, there are currently six foreign stockbrokers in Malaysia, namely CLSA Securities, Credit Suisse Securities, JP Morgan Securities, Macquarie Capital Securities, UBS Securities and Nomura Securities.
“We are confident of achieving this target based on our strong presence here,” CGMM’s chairman and non-executive director Sanjeev Nanavati, told reporters after the launch of CGMM.
Sanjeev, who is also Citibank Bhd’s chief executive officer, said the establishment of CGMM was a significant milestone for Citi and would complete the range of financial services and products it offered in the country.
“Commencing stockbroking operations in the country underscores our desire to play a wider role in the Malaysian capital markets. Our extensive global reach, experience and resources will help facilitate further investment from our global clients into Malaysia, including important and increasing funds flow from the Middle East,” he said.
Sanjeev said with a presence across the region and assets under management of more than US$1 trillion, Citi was well placed to help facilitate some of these increased flows.
Meanwhile, Citi Asia Pacific’s head of equities, Adrian Faure, said the setting up of CGMM underlined Citi’s continued investment in Asia Pacific equities franchise to help its regional and global clients who were increasingly looking to invest in Asian equities given the region’s growth potential.
He said CGMM would focus mainly on institutional investors.
Faure said Citi has steadily expanded its research coverage of Malaysian equities, and now has stocks under coverage representing 86% of MSCI Malaysia and 87% of FTSE Bursa Malaysia KLCI by market capitalisation.
He said the company was currently in the process of acquiring a minority stake in a local stockbroker company in Vietnam in a move to penetrate the capital market there.
The proposed acquisition was expected to be completed by year-end, he said.Citi has 11 branches nationwide. The bank offers a comprehensive range of products, such as sales and trading in foreign exchange, fixed income, commodities and credit. — Bernama
According to Dealogic data, Citi has helped Malaysian companies raise over US$7bil from domestic and international capital markets in the last three years. — Bernama
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