iCapital.biz sees 7pc GDP growth
By Azlan Abu BakarPublished: 2010/08/16
MALAYSIA could record a positive gross domestic growth (GDP) for 2010 although almost all major economies including the US and China have suffered a growth slowdown since a couple of weeks ago.
Icapital.biz Bhd (5108) managing director Tan Teng Boo said the global market outlook for the next six months will continue to be uncertain.
Key data released in the US showed hints of possible economic softness, which could trigger another round of cautious sentiment among investors.
"However, despite the current situation Malaysia could still record up to 7 per cent GDP growth this year given the strong growth it achieved in the first and second quarter of the year," he told reporters when met at the company's Investors Day in Kuala Lumpur over the weekend.
The event was held to educate investors on investments. It also held talks, exhibition booths and presentations from companies which icapital.biz had invested in.
Tan said although the equity market has somewhat lagged behind a bit compared to others in the region, foreign investors are nevertheless excited with the New Economic Model (NEM) introduced by the government.
"They (foreign investors) are waiting to see how fast and how broad the reforms will be able to take place," he said.
He said if the NEM can be implemented fast, it could also transform and take Malaysia's economy into a new level.
"When that happens, we can expect to see a boom on the local stock market," Tan said, noting there a lot of undervalued stocks on Bursa Malaysia.
He said the Malaysian economy has the potential to surpass the performance of other markets including Singapore and Taiwan.
"We can succeed as we have the people, necessary support and skills to further build up the economy and attract direct foreign investments into the country," Tan said.
He said Malaysia's growth at present will continue to be driven by the resilient domestic market.
Icapital.biz, the country's only listed closed-end fund, recorded a net profit of RM36.4 million on the back of a RM42.2 million revenue for the financial year ended May 31 2010 compared with a revenue of only RM11.4 million a year before. Net profit in 2009 stood at RM6.2 million.
Its net asset value for the financial year recently ended rose 19 per cent to RM2.10 per share from RM1.77 previously.
"We hope to double our assets in the next five years," Tan said, noting the company posted growth of more than 130 per cent since it was listed in 2005.
Read more: iCapital.biz sees 7pc GDP growth http://www.btimes.com.my/Current_News/BTIMES/articles/ibix15/Article/#ixzz0wiSOWKeN
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