HOW TO INVEST IN THE LONDON STOCK EXCHANGE FROM MALAYSIA

Can I Buy UK Stocks from Malaysia?

We have had several questions from readers on whether investors in Malaysia can buy British stocks being non-UK residents. The UK law system regulates UK Stocks and bonds, yet, you do not have to be a British citizen to trade in the London Stock Exchange; in other words, you may buy UK shares being a Malaysian citizen. No specific laws prohibit non-UK citizens from investing in the different UK stock markets. Many investment firms cater to international clients. You will be (generally) only subject to UK tax on limited local source income and gains; on the resulting profit when trading those shares.

London Stock Exchange: Buying Shares of a Global Power

Although some of the comings and goings that the United Kingdom is experiencing regarding Brexit cleared after its effect on Dec 2020, it remains a world power at all levels, military, economic and financial. The UK has a considerable number of world-renowned companies in a large number of sectors: energy, minerals, and banking, among others. The British economy is among the most innovative, efficient and business-friendly economies. Their products and services are in high global demand for quality, especially in their former colonies.

In addition to this, investing in British stocks involves gaining exposure to the British pound (GBP), one of the most robust and stable currencies globally. For these reasons, investing in British stocks listed on the London Stock Exchange is an excellent option for diversifying a portfolio of stocks.

Shares of giant British Corporations are some of the most sought-after financial assets by global investors. Below we list [Some of] the most popular stocks:

• Royal Dutch Shell: The giant oil company

• HSBC Holdings: The big bank

• BP: Another big oil company.

• AstraZeneca: If you have lived on the earth during Covid times, you know who AstraZeneca is.

• GlaxoSmithKline: A pharmaceutical owner of half the brands you hold in your bathroom.

• Diageo: An alcoholic beverage producer and owner of some of the most well-renowned whiskies, rums and vodkas.

• Unilever: An industrial colossus that produces articles of mass consumption.

• Rio Tinto: One of the largest mining companies globally.

• Reckitt Benckiser Group: Another mass consumption industrial giant.

• Vodafone Group: The company that revolutionised the mobile business by globalising it needs no further introduction.

• Prudential: One of the largest global insurers and asset managers. As of 2019, they managed around 540 billion US dollars.

• Lloyds Banking Group: Another traditional British Bank.

The previous is an incomplete list of the most well-renowned shares; many internationally recognised companies and brands are available to invest at the LSE. A rounded way of investing is to invest in the FTSE100 index, which groups the top 100 companies that trade on the London Stock Exchange.

FTSE100: The Index that Best Expresses the UK Market

Financial Times 100 Index, FTSE100 or Footsie, is among the most extensively respected stock market indices globally. The FTSE100 is the most representative index of the UK financial markets.

The index is constructed from the market capitalisation of 100 large companies that issued shares at the LSE. It represents a market capitalisation of approximately 1.8 trillion pounds (Around 70% of the stock market). The FTSE Group, a subsidiary of the London Stock Exchange, maintains and balances the index components and weighting.

Investing in a financial instrument replicating the FTSE100 Index is (the best?) an excellent way to invest in a good portion of the British economy through the shares of its corporate giants.