Institutional investors currently hold a substantial 41% stake in Bursa Malaysia Berhad, a development that has increased the company's appeal due to its inclusion in a major index, as of Monday. Analysts from these institutions have indicated positive market trends and potential for consistent growth.
Despite the optimistic outlook, concerns have been raised about the risk of 'crowded trade'. This risk arises from the potential for a rapid sell-off during unfavorable market conditions. The concern is further amplified by Bursa Malaysia Berhad's inconsistent growth history.
Bursa Malaysia Berhad's position in a major index and the significant stake held by institutional investors underscore its relevance in the market. However, the possibility of a rapid sell-off during adverse conditions presents a threat to stability, especially given the company's history of inconsistent growth.
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