One of the smartest things you can do with your portfolio is to diversify it. By diversifying the assets you are invested in, you can mitigate risk.
But you can go even further and diversify by investing in different stock markets, like Malaysia’s stock market.
With improving economic conditions, an industrial rebound, and strong demand for electronic
exports, Malaysia’s stock market is expected to pick up. Now would be the
perfect time to invest - if you know how.
If you’re looking to trade on the
Malaysia stock market but aren’t sure how, read on for a quick guide that will
get you started.
Bursa
Malaysia
First, let’s talk a little about the
basics of the Malaysian stock market. Bursa Malaysia is the stock exchange of
Malaysia. It’s based in Kuala Lumpur, the country’s capital.
Bursa Malaysia offers trading from
Monday to Friday, excluding public holidays. Its trading hours are as follows:
- First session: 9:00 am - 12:30 pm
- Second session: 2:30 pm - 5 pm
Bursa Malaysia offers a variety of
securities such as equities and bonds. They also have an Islamic markets team
that is dedicated to developing Shariah-compliant market products and trading
platforms.
Investing
in Bursa Malaysia
In order to invest in Bursa
Malaysia, you will need to find a brokerage. Finding a brokerage isn’t too
hard. There are many that will allow you to easily invest online.
Even if you don’t live in Malaysia,
you can easily invest in the market with just a click
or two. If you’re looking to expand your trading portfolio, investing in other
markets is a great way to do that.
Make sure to look for a brokerage
that is affordable. Fees and commissions can quickly eat into your bottom line.
Fortunately, online brokers often offer low brokerage fees.
Capital
Gains and Dividends
Aside from accessing an alternate
stock exchange and expanding your portfolio, trading in Malaysia has other
advantages.
For one, capital gains from stocks
are not taxable. Capital gains are the increase in your stock's volume which is
realized when you sell your stocks. In most countries, you are taxed on capital
gains.
You also don’t have to pay taxes on
dividends. In Malaysia, the company paying dividends pays tax before
distributing it to shareholders. When you receive your dividend income, you do
not have to pay taxes.
Keep in mind that this is only for
Malaysia. If you are residing in a different country, local tax laws may still
apply.
Expand
Your Portfolio With the Malaysia Stock Market
The Malaysia stock market offers an
opportunity to expand your trading portfolio by investing in a stock market
that you may not have previously invested in or had access to.
Online brokers have made it easier
than ever to invest. Just make sure to do your research to find an affordable
broker, and make sure to research your stock picks too.
For more on investing and other
topics, check out the rest of our site.
