Banking sector to drive stockmarket expansion

20061122 Articles from www.thestar.com.my on some foreign parties negotiating to take strategic stake in AMMB Holdings. This is an indication of the rerating of Malaysia in the eyes of foreign investors, which could be the precursor of a flood of money into the country, thereby fuelling a medium term expansion in Bursa shares. This money is not just looking for short term gain, as Newbridge puts it, they are in investments for 10 or more years. Banking sector in Malaysia in their eyes provide growth and value, hence the attraction. The 10 year expansion of the Australian sharemarket, has just seen this sort of private equity flooding in, that drove the S&P ASX 200 to multi year expansion. Will this happen to Bursamalaysia? Odds are in favour, if things are done right by the regulators.