Bursa Malaysia has said there is much potential upside for Malaysian shares because the FBM KLCI has one of the lowest forward price-earnings ratios among benchmark Southeast Asian equity indices and that Malaysia has the lowest inflation rate in the region.
"Despite rising concern over cost of living, Malaysia has the lowest inflation rate in the region.
"The FBM KLCI also has one of the lowest forward [PERs] and this could provide much potential upside to investors," Bursa's research arm Bursa Digital Research said in a Facebook post on Friday (July 8).
The Facebook post also mentions the April 2022's average inflation data from the International Monetary Fund.
The data shows that Malaysia recorded year-on-year (y-o-y) changes in average consumer prices.
Malaysia's average y-o-y growth in consumer prices stood at 3.05% compared to Indonesia's 3.29%, Singapore's 3.49%, Thailand's 3.51% and the Philippines' 4.26%.
On the other hand, Finance Minister Tengku Zafrul Aziz says he expects economy to have strengthened in 2Q,
He says the Budget 2023 will help to further boost economic resiliency.
The country’s economy is expected to have continued to strengthen in the second quarter of this year (2Q22) following the encouraging gross domestic product growth of 5% in the first quarter.
This includes continued improvement in wholesale and retail trade, according to Zafrul.
According to him, the economy is gradually improving and has started to expand based on various indicators for May 2022.