SHARE investment doesn't work very well if we lack belief in the benefits of floating a company, or if corporate exercises transform into political hot potatoes. Such things can short-circuit the stock market because they create uncertainty and uneasiness.
That is why we better hope that a couple of recent developments are merely blips, and that they do not reflect the country's overall attitude towards the workings of the stock market.
Full article can be read here.
Although I agree with his view point on TH Plantations Bhd. I feel the Member of Parliament who raise such issue totally do not understand economic and finance at all. They can hide their weakness by remaining silent. But they choose to show their poor understanding and knowledge to the public.
However, on the issue Singapore's Parkway Holdings Ltd's purchase of a 31% stake in healthcare services provider Pantai Holdings Bhd in September. The article fail to highlight Fomena Sdn Bhd has fall in the hand of foreigner. I feel that Pantai Holdings Bhd new shareholder should dispose off Fomena Sdn Bhd and Pantai Medivest Sdn Bhd if the deal go through, other than Avenue and Pos Malaysia Bhd.
He further stated that:
Driven by hopes and promises, the stock market can arouse a gamut of emotions. But should suspicion and fear of the unknown be part of the mix?
They shouldn't. Such sentiments often cloud our judgment and hold us back. They nullify what the stock market has to offer – a platform for businesses to be transparently and efficiently compared with others. More often than not, good performances and decisions are suitably rewarded.
Sure, the stock market has its share of risks and hazards, but it doesn't have to be a scary place. ........
.....We need to have faith in the stock market's ability to both absorb and reflect the realities of business. For example, the forces of globalisation and deregulation cannot be turned back. Companies that ignore this are likely to suffer. They cannot be protected indefinitely.
In another business news. The Star reported that the trading volumes on Bursa Malaysia these days are said to be miserable.
Many blame the lack of retail participation, others have their own reasons but something needs seriously be done to improve trading volumes.
....the average volume of shares traded for 527 counters did not even hit 100,000 shares in a single day.
But Bursa is working towards installing a new trading system by mid-2006. Currently, it has some issues with the vendors that it expects to resolve soon. Once the new system is installed, Bursa Malaysia chief executive officer Yusli Mohamed Yusoff believes there can be a better monitoring system of daily volumes.
“There are features where we can monitor a particular stock during certain periods of the day, and even hour, to see how concentrated the activities are for each stock.
“The new system will allow us to introduce new features such as special trading sessions for low liquidity stocks.This will encourage concentrated market focus on such stocks during these special sessions,’’ he said.
I feel that the lack of participation among retailer are cause by limit down of certain counter at the first half of the year. Many retailer get burn on the few counter and they yet torecoverrfrom thee wound.
TechnoratiTag:Business Commentary competitive Economics Economy Malaysia News and politics Opinion Politik finance Shares Stock Market
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