KUALA LUMPUR, Jan 3 — Malaysia’s equity market is expected to remain strong in 2018 on the back of the expanding economy, recovering ringgit and commodity prices, said AmBank Research in a strategy note today.
The research house said initial public offerings (IPO) are also poised to come from energy, infrastructure, financial services and consumer sectors.
“In 2018, one can expect several significant IPOs including Bank Islam, Edra Global Energy and potentially, foreign insurers in Malaysia.
“Besides in Malaysia, capital is expected to be raised through equity placements and right issues as the equity market continues to gain momentum. Furthermore, growth will come strongly from the mid-corporate segment,” it said.
Ambank noted the political risk stemming from the general election that must be held this year, but said the effects would be passing.
It also said the Malaysian debt market will remain positive given the various funding requirements for infrastructure projects that are due to be rolled out.
