KUALA LUMPUR: The share market received a major boost when a newly established asset management company with about RM10bil worth of funds began operations yesterday.
Valuecap Sdn Bhd, equally owned by Khazanah Nasional Bhd, Permodalan Nasional Bhd and Kumpulan Wang Amanah Pencen, will invest the amount in the Kuala Lumpur Stock Exchange over a period of time depending on the value of the stocks and timing opportunities.
News of its market operations pushed up the local stock market in late afternoon trading.
The KLSE benchmark Composite Index (CI) climbed 9.24 points or 1.5% to close at 635.8. Trading volume rose to 186.3 million shares from 112.7 million shares the previous day.
In a statement yesterday, Valuecap said it was principally involved in the business of investments in listed securities on the KLSE and that it had resources of up to RM10bil available for equity investments.
The formation of Valuecap is timely, given the current low share prices on the KLSE. Prior to yesterday’s rebound, the CI had dropped 20 points to around 626 compared with last year’s closing.
According to analysts, the participation of Valuecap will improve liquidity in the local market, which has been in the doldrums since the second half of last year.
”Given the sizeable funds under its management, the company is poised to play an active role in the local bourse,” the statement said.
The setting up of Valuecap is also in line with the government’s call to promote greater efficiency in the domestic market by creating larger pools of institutional investor participation in the market to ensure that the market reflected fully the fundamental value of the stocks.
Valuecap’s investment philosophy is to seek superior long-term returns through its long-term investments based on a “rigorous and disciplined investment process.”
Its investment decision-making process will be independent of its shareholders as it is governed by its own board of directors and investment committee which oversees its investment operations.
To ensure that its shareholders’ objectives are met, the company is mobilising a high-quality team of professional portfolio managers with a good track record.