KUALA LUMPUR, July 23 — The Bursa Malaysia has climbed 59 per cent this year to make it the best performing stock exchange worldwide so far, according to Bloomberg.
The Malaysian stock exchange’s rise also beat out the 43 per cent year-to-date improvement recorded at the Hong Kong Exchanges & Clearing Ltd — the world’s largest in terms of value — even after the latter enjoyed a 10 per cent surge this week.
According to the financial news service, investors were snapping up shares in Malaysia that were depressed in value due to the ongoing Covid-19 pandemic, with especially heightened interest in the stocks of local glove makers.
Malaysia is home to the world’s largest glove maker, Top Glove Corporation Bhd, as well as several other major competitors that have all enjoyed a surge in demand as countries rushed to procure personal protective equipment for medical workers fighting the Covid-19 pandemic.
On Monday alone, frenzied trading to the stocks of glove makers helped Bursa Malaysia break its record for overall trading volume after 12.5 billion shares exchanged hands that day.
One analyst told Bloomberg that Bursa Malaysia was on track to report a record high profit of US$80 million (RM340.7 million) for the second quarter due to the trading frenzy.
Bloomberg also reported that a tenth of all stock purchased in the Bursa Malaysia was in local glove makers, with investors betting that these firms will continue to enjoy supernormal demand for their products throughout the pandemic.
