Reuters reported that the Malaysia's capital market will stay healthy next year (2012) despite the global downturn, led by consolidation in the energy and property sectors and fund-raising by banks to meet heftier capital requirements This was confirmed by JPMorgan's local investment banking head.
However, analysts expect capital market activity to slow to a trickle worldwide in 2012 due to Europe's deepening debt crisis and a lacklustre US economy.
Bursa Malaysia saw 27 listings so far this year which raised RM6bil compared with 29 in 2010 when economic growth accelerated to a 10-year high of 7.2%.
The country's Economic Transformation Programme (ETP), a RM1.4 trillion government initiative to boost investment and raise national income, would offset external weakness and help invigorate the market. This indicates that the government Economic transformation Programme would play a major role in uplifting the country's economy.
Meanwhile, consolidation in major sectors such as oil and gas and property would spur domestic merger and acquisition activity, while banks would look to raise funds to meet Basel III capital requirements, he said.
Recent Malaysian merger and acquisition activity has been led by property, energy and banking firms. UEM Land Bhd took over rival Sunrise Bhd last year while government asset manager Permodalan Nasional Bhd made a bid for SP Setia Bhd in September.
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