MY Morning Wrap | Yinson Holdings' Major Shareholder Triggers Takeover Offer for Icon Offshore

Malaysia's property market is experiencing a bull run as the Property Index of Bursa Malaysia surpassed the 1,000-point mark, a level that was last seen five and a half years ago. The property stock rally, which began in mid-2023, has yet to lose steam, with the Property Index rallying by 10% in the past three weeks alone, closing at 1,004.97 points yesterday. As unsold properties decline and developers continue to launch new projects, three out of the five largest property stocks have rallied by double-digits in the past three weeks. This has brought cheer to retail investors and government-linked entities that are substantial shareholders in property companies. However, some analysts remain cautious due to oversupply, high household debt, elevated interest rates, and weakened consumer sentiment.

Despite the challenges and uncertainties of 2023, the Malaysian capital market has remained resilient. However, the Securities Commission (SC) notes that its recovery has been lagging since 2019, with small-cap counters driving most of the trading activities, particularly by retail investors. The SC also highlights the dwindling foreign investor interest in the Malaysian capital market, with foreign holdings of Malaysian equities standing at 19.54% in 2023, lower than its five-year average. The regulator emphasizes the need for the government to implement medium and long-term measures to stimulate trading activities and enhance the attractiveness of the capital market. Meanwhile, the SC urges companies to be aware of ESG-related matters, which is a pertinent issue among global investors these days.