KUALA LUMPUR: The benchmark FBM KLCI is expected to trade above the 1,700 level in 2019 on the back of strong domestic fundamentals, said Bursa Malaysia Bhd chief executive officer Datuk Seri Tajuddin Atan.
He said the market would also monitor closely the external environment, including the US-China trade war and interest rate movement.
“2019 is the year when people expect the market to be a little bit more challenging. But rest assured, as I see it, our fundamentals are quite strong.
“Of course, there is a headwind. If there is any movement, maybe there will be a slightly correction to that level,” he told reporters after the Investor Relations Awards 2018 organised by the Malaysian Investor Relations Association here yesterday.
Earlier in his speech, Tajuddin said investors were looking to achieve something beyond monetary gains with their investments or, at the very least, to ensure their investments did not support activities that were against their beliefs and values.
Against this backdrop, he said, businesses today must be clear about their core beliefs and value systems, and communicate them in a way that would resonate with their investors.
“This is where investor relations handled with consistency and honesty can turn investors into advocates and resources that help the company grow, for investors have vested interest to see the business they invest in succeed,” Tajuddin said.
He pointed out that the environmental, social and governance (ESG) disclosures on non-financial factors such as corporate governance environment issues were becoming an increasingly important consideration for investors.
“This forms part of the honest and transparent communication that investor relations professionals should effectively articulate to win their confidence and trust,” he added.
Tajuddin pointed out that Bursa Malaysia held an ongoing agenda to encourage public-listed companies to adopt, and report on, sustainability, corporate governance and transparency, which started with the introduction of corporate social responsibility disclosures in annual reports in 2006.
“However, communicating value to shareholders goes beyond what is printed in our annual or sustainability reports. I believe that each experience shareholders associate with a particular company is an opportunity to communicate what that company stands for,” he added.
Among the winners at the Investor Relations Awards were Serba Dinamik Holdings Bhd (for Best Investor Relations for an IPO Company in 2017), Malayan Banking Bhd (Best Quality of Annual Reports/Formal Disclosure) and Hong Leong Bank Bhd (Most Improved Service from Investor Relations Team). –Bernama
