Move to end exit levy a surprise but well-timed (HL).

THE Government's move to scrap the exit levy came as a surprise to many yesterday, but it was certainly well-timed, coming amid strong rallies on Asian stock markets, including the Kuala Lumpur Stock Exchange.

Local share prices rose higher across the board as investors and analysts welcomed the end to the tax on foreign investors' stock market profits, a key component of the selective capital controls imposed in September 1998.

Few however expect the move to immediately benefit the KLSE, despite the broad-based rally yesterday.

Foreign funds are not likely to pour in straight away, but the move will significantly improve the long-term outlook for …