The move to allow regulated short selling (RSS) and the Government's support for mergers and acq... Market to improve with new | Asian sex
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The move to allow regulated short selling (RSS) and the Government's support for mergers and acq... Market to improve with new

The move to allow regulated short selling (RSS) and the Government's support for mergers and acquisitions will improve the market's velocity and strengthen the quality of stocks on the exchange.

Credit Suisse Securities (M) Sdn Bhd managing director and head of equities Steven Hagger said the stock market's performance had been lacklustre for some time, relative to other bourses in the region, especially in terms of velocity. “But the move to allow RSS will help invigorate the market,” he told reporters during the Malaysian Institute of Certified Public Accountants-Bursa Malaysia Business Forum 2006.

Hagger said companies that were under the radar of foreign institutional investors included AirAsia Bhd, Astro All Asia Networks Plc, IOI Corp Bhd and Bumiputra-Commerce Holdings Bhd.

“They all have one thing in common - sound management. And the ability to hire the best people in the various sectors irrespective of race, sex or creed,” he said.

Hagger also said many of the large capitalised companies listed on the stock exchange were GLCs that were still being revamped and under performing.

“The Government should reduce its stake in the GLCs, encourage more mergers and acquisitions and increase the free float to strengthen the market,” he said.

Bursa Malaysia Bhd chief regulatory officer Devanesan Evanson, who was the guest speaker at the talk, said the exchange, as a company, had to take care of its bottom line and also act as regulator.

“Bursa plans to introduce new products and services, including proprietary day trading (PDT) and RSS within the next six months. RSS will be launched soon, possibly before year-end,” he said.

PDT is expected to involve a class of selected traders, known as proprietary day traders, who will have the privilege of trading intra-day with provisions not normally available to all traders.

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admin – Sat, 2006 – 09 – 23 11:00