Malaysian stocks rose, driving the benchmark index to a record close, as government plans to boost the economy and an appreciating currency bolstered foreign investment in the market to a two-year high.
Malaysia’s stock index may surpass levels before the start of the global financial crisis in 2008 as the government accelerates economic reforms and construction projects, CIMB Investment Bank Bhd. said.
Overseas investors who sold the most Malaysian stocks in at least two years in August may sell more shares even as the government pledges reforms to attract foreign capital, CIMB Group Holdings Bhd. said.
Malaysia’s ringgit climbed to the strongest per dollar since October 1997 while the benchmark stock index rose to its highest level in more than 31 months as the outlook for the nation’s exports improved.
Hotel Properties Ltd., owner of the Four Seasons hotels in Singapore and Bali, jumped the most in almost five years after founding shareholders agreed to buy the stock they don’t own for S$749 million ($597 million).
Malaysia may match this year’s record initial public offerings in 2011 as government efforts to boost the economy bolster investor confidence, Bursa Malaysia Bhd. Chief Executive Officer Yusli Mohamed Yusoff said.