KUALA LUMPUR: The FTSE4Good Bursa Malaysia Shariah Index and the FTSE Bursa Malaysia EMAS Shariah Index marginally outperformed their non-syariah counterparts in the first seven months of this year, according to Bursa Malaysia.
Bursa Malaysia CEO Datuk Muhammad Umar Swift said this reflects growing investor confidence in companies prioritising sustainable and ethical practices, underscoring the financial viability and attractiveness of syariah-compliant investments.
Regarding key metrics for syariah-compliant securities in the first half of 2024, he noted that by the end of June, 833 out of 1,049 listed counters on Bursa Malaysia – representing 79.4% – were syariah-compliant.
“The market capitalisation of syariah-compliant securities grew 19.7% year-on-year to RM1.3 trillion, making up 65.2% of total market capitalisation.
“The average daily trading value (ADV) for syariah-compliant securities rose 50.9% year-on-year to RM2.1 billion, now accounting for 65.3% of total ADV,” he said in his welcome remarks at the Invest Shariah 2024 conference today.
Muhammad Umar highlighted that on May 7, 2024, Bursa Malaysia achieved a historic milestone by surpassing a market capitalisation of RM2 trillion.
The local bourse's capital market has attracted significant interest, leading to increased participation from both domestic and foreign investors, primarily driven by the government’s effective economic restructuring and fiscal reforms, he added.
“The FBM KLCI remains resilient, consistently holding support above the 1,600-point level, despite recent fears of a US recession and a global decline in equity market indices, partly due to the unwinding of the Japanese yen carry trade.”
As of the end of 2023, Malaysia’s Islamic finance assets stood at RM3.8 trillion, positioning the country among the top three globally.
The Islamic capital market in Malaysia totalled RM2.4 trillion in 2023, representing 64% of the country’s total capital market, according to the Securities Commission.
“We are at a pivotal moment in finance, where the principles of ethical conduct, financial inclusion, and a stakeholder-driven approach are becoming increasingly paramount.
“The Securities Commission Malaysia’s recent introduction of the Maqasid al-Shariah Guidance for the Islamic Capital Market is a testament to this shift,” Muhammad Umar noted.
He emphasised that this guidance highlights the importance of creating a just financial system that not only meets current needs but also ensures sustainability for future generations. – Bernama
