Bursa Malaysia trading at healthy level, says EPF CEO

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KUALA LUMPUR: Trading in Bursa Malaysia remains at a healthy level despite a recent heavy selldown, said Employees Provident Fund (EPF) chief executive officer Datuk Shahril Ridza Ridzuan.

He explained that the recent weakness was in line with the other regional markets, which reacted negatively to the strengthening of the US markets and global political issues.

“Markets go up and down all the time. Markets should be viewed over a three to five years cycle because that is the right way to make investments (and not in the short term or just for a few days),” he told reporters after a meeting with the Council of Eminent Persons yesterday.

MIDF Investment Bank Bhd in its fund flow report said foreign selling of Malaysian equities on Bursa Malaysia narrowed to RM892.4 million last week, from RM2.48 billion in the prior week.

Shahril Ridza also denied the selldown was due to a knee-jerk reaction to the nation’s latest debt data.

Recently, the Ministry of Finance announced that Malaysia’s total debt amounted to RM1.087 trillion, or 80.3 per cent of gross domestic product, at the end of last year comprising official debt, contingent liabilities and lease payments for public-private partnerships.

“Like I said, all the regional markets are currently experiencing a little bit of a selldown because of the deflection of emerging markets. But this happens quite regularly.

“Hence, it is not a cause for concern,” he said.

On other developments, Shahril Ridza said the abolishing of road tolls was not discussed during the meeting.

“There will be further updates later on but I think I will leave it to the council to announce,” he added. — Bernama