Back in full force
Ng Wai Mun | 09 Jun 2017 00:30

The worst seems to be over for Bursa Malaysia, and large local funds are pouring in again. 

Finding the market undervalued, they have returned to cherry-pick stocks. One such fund is VCAP Asset Managers Sdn Bhd (VCAM) which has RM4.9 bil to invest. VCAM is wholly owned by ValueCap Sdn Bhd, which is in turn equally owned by Khazanah Nasional Bhd, Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Bhd. ValueCap on its own has about RM10 bil to invest (see sidebar). 

The local bourse started the year with a bang after a disappointing 2015 and 2016 when the FBM KLCI dipped by 4% and 3% respectively, due to the declining ringgit and oil price slump. Year to date, the index has moved up by 8.8% to 1,785.57 points as of June 8. Analysts see better times ahead as the ringgit strengthens and oil price stabilises.

Reflecting the general positive vibe, VCAM CEO Shan Kamahl Mohammad says: “It’s safe to say we have been mobilising clients’ funds back to the market the past few weeks.”