Low Activities in Bursa Malaysia

Bursa Malaysia had a great start this year, but now it’s hitting some bumps. Trading activity, or how often people buy and sell, has slowed down, which could impact earnings in the last quarter.

HLIB Research recently adjusted its price target for Bursa Malaysia to RM9.75, reflecting a more cautious view. One issue is the high price-to-earnings (PE) ratio, which measures how expensive the stock is compared to its profits—Bursa’s stock is now closer in value to regional competitors, making it less attractive for investors.

Costs are also rising, particularly in the fourth quarter when operational expenses tend to go up, adding another hurdle.

On top of that, a new 2% tax on dividend income over RM100,000 could make some high-net-worth investors hesitate, even if the impact on returns is small.

As a result, investors might see this as a time to lock in gains, especially with the stock’s 35% rally this year, while new investors may face limited returns and increased risks.