Posted by Sslee > 1 month ago | Report Abuse

Why ordinary investors are shunning Bursa Malaysia - TK Chua

Let’s be realistic, I think for speculative play and gambling, ordinary investors stand no chance against corporate bigwigs and insiders.

May I ask how many percent of the listed companies in Bursa Malaysia today are of investment grade? My estimate is not even exceeding 20 percent.

These companies raised money from the market, but do they really care for returns to shareholders? How many companies have provided decent dividends, if at all declared any dividend, to shareholders?

To me, many of these companies with listed status are nothing more than “conduit” for them to print money. They exist mainly for the sole benefits of those who are in control of the companies.

The management and the controlling shareholders are being lavishly rewarded while shareholders who provided the funding are given pittance or nothing.

If we want to make Bursa Malaysia an investment destination of choice, the strategy is not to allow every Tom, Dick and Harry to list their companies. I have seen too much abuse on this. On the contrary, we must be more selective to allow companies to list.

I understand caveat emptor must be the basic guiding principle of investing. However, if the market is ineffectively regulated and infested with poor governance, I think it is difficult for ordinary investors to make choices.

We can’t blame them for shunning the stock market if their experiences have been less than encouraging.

Instead of encouraging more people to invest in the stock market blindly, the focus should be on making the market more efficient and transparent. The authorities must monitor the listed companies to prevent them from indulging excessive corporate abuse for the benefits of controlling shareholders

Posted by speakup > 1 month ago | Report Abuse

most of new IPO, goreng on day 1, then dead

Posted by icecool > 4 weeks ago | Report Abuse

too many new ipo not enough liquidity to go round.

Posted by speakup > 4 weeks ago | Report Abuse

too much money punting on ipo, no wonder existing listed shares can PE 2x PE3x

Posted by KH6996 > 4 weeks ago | Report Abuse

You can also look at it the other way, it reminded me of the days of 2nd Board. Many were just cashing out and left retailers holding overpriced stocks. So, how many of the 55 IPOs are not the cases of owners cashing out? Its just an indication of the trust of this "Manaini" govt.Every other day PMX whacked "mahakaya", people who worked hard and save, asked people to contribute to disasters, MU etc ( while donating and give special treatment to Hamas etc) and keep taxing them while giving subsidies to those who probably never voted for him in the first place. He loses more existing votes than what he hopes to get at the rate it is going.

Posted by DickyMe > 4 weeks ago | Report Abuse

You mean new 55 ca-sino games?