Malaysian Equity Market

 Equites

The fortunes of a country’s equity or stock market are closely aligned with its economic well-being, and Malaysia is no exception. Similar to its global peers, Bursa Malaysia been enduring much turbulence in the last few years. Buffeted by strong external and internal headwinds, the market capitalisation of the local bourse had moderated further to RM1.74 trillion as at end-2022 (end-2021: RM1.79 trillion).

Profile of Malaysian Equity Market

Bursa Malaysia has the distinction of being among the biggest bourses in ASEAN with well over 900 listed companies. Investors can choose from a variety of listed products, including equities, derivatives, exchange-traded funds (ETFs), real estate investment trusts (REITs), and exchange traded bonds and sukuk (ETBS). Notably, 789 (81.2%) of the 972 listed entities on the local bourse were Shariah-compliant securities as at end-December 2022. These accounted for RM1.139 trillion or 65.6% of Bursa Malaysia’s overall market capitalisation as at the same date. Despite the tumultuous global markets, a total of RM26.0 billion was raised from the Malaysian equity market in 2022. Of this amount, RM3.5 billion originated from the primary market, i.e., via 35 initial public offering (IPOs). The other RM22.6 billion stemmed from secondary fundraising. The sturdier performance in 2022 was driven by a 52% y-o-y surge in IPOs and a 58% spike in secondary issuances.

Three Types of Markets on Bursa Malaysia

Bursa Malaysia operates through three markets – the Main Market, the ACE Market and the LEAP Market. Each has a different set of listing criteria for aspiring candidates. The following represents some of the most salient points of the respective markets.  

The Main Market is the primary market for larger companies with strong operating and profit track records, with a minimum required market capitalisation of RM500 million upon listing, among other things.

The ACE Market is a sponsor-driven alternative market designed for smaller companies that exhibit strong growth potential. No minimum profit or operating track record is required for listing.

The LEAP Market is a fundraising platform for what are perceived as underserved SMEs, which do not need to demonstrate any operating or financial track record. This adviser-driven market is only available to sophisticated investors.

In 2022, the Main Market hosted the listing of five companies while the ACE Market welcomed 25 and the LEAP Market contributed another five – bringing the total to 35 IPOS for the year. Together, these newly listed entities raised RM3.49 billion.

Listing Process and Platforms

The listing process (from the time the candidate engages an adviser to the day of listing) usually takes four to nine months, depending on the structure and complexity of the listing scheme. Upon approval, the entity will be given six months to complete its IPO exercise.

Bursa Malaysia also offers an end-to-end Shariah-compliant investing platform, along with the world’s first end-to-end Shariah-compliant commodities-trading platform. In recognition of the importance of sustainable and responsible investment, Bursa Malaysia launched the FTSE4Good Index in 2014. This index permits investors to measure domestic companies’ performance based on ESG standards. In July 2021, the local bourse introduced the FTSE4Good Bursa Malaysia Shariah Index – the Shariah-compliant version of the former. This new index will assist fund managers to develop new investment products constituting a portfolio of Shariah-compliant equities, guided by sustainable investing principles.

Investor Profile

The Malaysian stock market benefits from a diverse pool of investors, underscored by sturdy support from local institutional and retail investors. Domestic institutions remained net sellers in 2022, to the tune of RM6.53 billion (2021: RM9.1 billion). Meanwhile, local retail investors infused RM2.31 billion of net funds into the equity market, which paled in comparison to the previous year’s RM12.2 billion. Interestingly, foreign investors pumped in RM4.40 billion net (2021: RM3.15 billion) after four consecutive years as net sellers. Against this backdrop, the participation rate of retail investors declined to an average of 25.7% in terms of transaction value, relative to 34.6% in 2021. Nonetheless, this is still higher than the five-year pre-pandemic average of 18.8%

Trading Procedures

To invest in shares in Malaysia, one must be over the age of 18, open a Central Depository System (CDS) account and a trading account at a stockbroking firm. There are specific steps to follow pursuant to this, as detailed on Bursa Malaysia’s website.

Regulatory System

The Securities Commission Malaysia (SC) is the ultimate regulator of the Malaysian capital markets, including the equity market. As the front-line regulator, Bursa Malaysia, is tasked with safeguarding a fair and orderly market for the trading of securities and derivatives. The SC supervises and monitors Bursa Malaysia on listing, trading, clearing, settlement, and depository operations – to ensure the latter effectively performs its regulatory duties and obligations. Brokers and regulated entities must comply with the various rules set by Bursa Malaysia.

https://www.capitalmarketsmalaysia.com/public-equities/

'Don't confuse day traders with serious investors'

'Don't confuse day traders with serious investors': Warren Buffett and Howard Marks will win over time, Princeton economist says

"I don't confuse day traders with serious investors," he said. "Don't be misled with false claims of easy profits from day trading."

The economist and author added that almost all individual traders suffer losses over time, highlighting three studies to support his claim:

• Active traders on Charles Schwab significantly underperformed a low-cost index fund over a six-year period.
• Less than 1% of Taiwanese traders consistently beat a low-cost ETF over a 15-year period, and 80% lost money.
• 97% of Brazilian day traders lost money, and just 1% earned more than the national minimum wage.

Malkiel also emphasized that savvy investors diversify and rebalance their holdings, manage their tax burdens, avoid trying to time the market, stick to their convictions, and use investment structures such as low-fee ETFs.

https://markets.businessinsider.com/news/stocks/warren-buffett-howard-marks-will-ultimately-beat-day-traders-malkiel-2020-6-1029321160

Ordinary Malaysians shun stock market amid stalling recovery

By Yow Hong Chieh

September 01, 2010

Individual investors began fleeing the local market in 1997, and have yet to return. — Reuters pic

KUALA LUMPUR, Sept 1 — Individual investors continue to shun the Malaysian stock market as public confidence remains shaky due to fears that the market’s recovery following the 2007 US sub-prime mortgage crisis may not be real.

Economists and analysts said that a slowdown in foreign investments, poor enforcement against unscrupulous activities and overseas competition for local funds also contributed to the lack of interest among ordinary Malaysians in investing in the local share market.

Kenanga Investment Bank economist Wan Suhaimie Wan Saidie said most investors were tired of the Malaysian stock market, which was not as competitive as other bourses in the region, and added that participation was also muted due to the lack of foreign direct investment (FDI).

“There is a correlation between retail participants and foreign investment flows,” he said, referencing the massive 81.1 per cent drop in foreign direct investment (FDI) Malaysia experienced last year.

“If foreign investment flows are not forthcoming individual investors are more likely to shun the local market.”
He said there was a possibility that investors might “go back to hibernation” until they saw signs of a firm recovery, but cautioned that the flow information both locally and abroad did not suggest that things were getting any better.

Until then, however, investors still had many other options to buy both locally and abroad or put their money into properties and commodities, he explained.

The Kuala Lumpur Composite Index’s 45 per cent gain last year lagged behind Southeast Asian neighbours even after the government announced stimulus plans totalling RM67 billion to help pull the region’s third-largest economy out of a recession.

The slump in trading by individuals coincided with an exodus by foreigners from Asean’s second-biggest stock market, leaving Bursa Malaysia more reliant on domestic institutional funds.

Overseas investors have sold a net RM1.36 billion of Malaysia’s equities this year, adding to RM8.57 billion withdrawn in 2009 and RM38.6 billion that flowed out in 2008, paring their share of local stocks down to 20.6 per cent at the end of April from 27.5 per cent in April 2007.

Wan Suhaimie was critical of the level of participation in the market by statutory funds such as Employees Provident Fund (EPF), which he said distorted the market as they focused only on index-linked stocks.
On March 30, Prime Minister Datuk Seri Najib Razak revealed that the state-controlled EPF accounted for 50 per cent of daily trading volume in the equity and bond markets. Additionally, more than half of the RM417.1 billion market value in the benchmark stock index is owned by government-linked funds, according to calculations by Bloomberg.

“It doesn’t really reflect the real overall performance of the stock market. Most of the information and research is skewed towards big cap stocks,” he said, adding that it was possible that investors might miss out on smaller companies that have better growth potential because of this.

A Hwang-DBS remisier who wanted to be identified only as Kok explained that, during good times, retail investors make up 60 to 70 per cent of trading value in a normal market.

However, according to a Bloomberg report, trading by individuals have fallen to as low as 20 percent of trading value from more than half before the start of the 1997 Asian financial crisis, when the KLCI slumped by a record 52 per cent.

Kok said the battering individual investors took in 1997 and the recent sub-prime crisis led many to put their money in safer alternatives like unit trusts or sukuks (Islamic bonds), adding that many were also still holding onto stocks that had yet to recover.

“With the market in such a lacklustre mode, you can’t make money punting,” he said. “The market is just drifting. The main market movers are just blue chip index counters... Most retail investors are still on the sidelines nursing their wounds.”

“Any spare money they’ll probably keep in interest-bearing accounts or, if they have more money, they’ll probably just park it with a fund manager.”

Most individual savings started shifting to mutual funds and unit trusts since Malaysia’s economy went into a recession in 1998 but have not returned to stock trading even as the economy expanded at an annual average of five percent over the past decade and the benchmark index more than doubled, Bursa Malaysia CEO Yusli Mohamed Yusoff said in June.

In order to boost retail investors’ share of trading to closer to one-third and tap into Southeast Asia’s second-highest savings rate, Bursa is currently working with brokerages and banks to encourage investors to open up accounts and pursue online trading.

However, Kok said he felt that investors were still wary of trading on the market because they were not convinced that Malaysia’s economic recovery was real.

“When you talk about six or seven per cent (GDP) growth, I suppose you and I don’t see it,” he said.

A broker with a local investment bank who declined to be named was similarly sceptical of the strength of the market’s recovery, pointing out that the KLCI, which is used as a bellwether for the Malaysian stock market, focused only on selected blue chip stocks.

“It is very obvious that the index, targeting only 30 counters, is not a true reflection of the overall market. A lot of the companies are actually really going down,” she said.

“Because the downtrend from ‘07, until today, in terms of all those general stocks that people buy and sell, a lot of them are still very much at the bottom.”

She added that retail investors have also been “very quiet” partly because they had lost confidence in market regulators, citing the recent case of furniture make Kenmark Industrial Co Bhd.

Kenmark’s troubles began in late May when its Taiwanese managing director James Hwang disappeared mysteriously — leading to a plunge in share price and plant closures in Port Klang and Vietnam — only to resurface nearly a week later, claiming his absence was due to illness.

During Hwang’s absence, Datuk Ishak Ismail entered the market and amassed shares amounting to a 32.36 per cent stake in the company over 10 days at prices of between 5.8 sen and 6.0 sen, claiming he had done so to help out his friend Hwang and offer re-employment to the company’s workers.

However, Ishak later sold his direct and indirect stake in Kenmark between June 9 and June 11 at between 14 sen and 16 sen after failing to convince Hwang to return to the company.

The Securities Commission finally stepped in on June 16 when it obtained a High Court order to stop Ishak from using or dealing with the RM10.16 million proceeds from the sale of shares in Kenmark as part of a move to probe possible insider trading.

Kenmark’s share price plummeted from a high of RM0.85 to just RM0.07.

“Stocks can drop from a dollar to penny stocks... These sorts of events happen in the Malaysian market, yet the authorities are not taking action,” the remisier said.

“A company doesn’t just fold up within a month. I can understand how those investors feel.”

http://www.themalaysianinsider.com/business/article/ordinary-malaysians-shun-stock-market-amid-stalling-recovery/

THERE are many different types of investors. Here are 10. Maybe you can spot yourself.

Many types make up the world of share trading
June 26, 2010

THERE are many different types of investors. Here are 10. Maybe you can spot yourself.

The Plodder This is your goody two-shoes investor. Holds a portfolio of long-term stocks. Out of 20 stocks bought for $50,000 each, all are worth $60,000 except for Telstra ($30,000) and the banks ($100,000 each). Carved out of the annals of financial theory. Focuses on franking. Quotes Warren Buffet.

Banks are 40 per cent of the portfolio because he got them in the float and never sold them. Never trades. Never sells. Is appropriately inattentive. Wishes he'd sold Telstra.

The fear of losing money to the Tax Office through capital gains has driven spectacular long-term annual compound returns and ensured an absolute belting in the global financial crisis.

But it doesn't matter because everything was bought for 10¢. Will leave millions to his undeserving children, who will cash it all in and live like kings.

The Gambler Thinks the sharemarket is everything the product marketers say it is and is quickly skinned alive in some derivative product he didn't understand.

The 10-Bet Investor Has 20 stocks bought for $50,000 each. Two stocks have gone to zero. Sixteen are worth between $45,000 and $55,000. One stock is worth $200,000. One stock is worth $2 million. Focus on resources exploration, biotechs and new issues. No banks. No big blue chips. No yield. This is organised gambling where the odds are narrowed by a lot of work, information and networking.

The "Blind and in Love" Investor Has $1 million and it is all in one stock. Next year it will be worth anything between zero and $10 million. This is the investor who knows absolutely everything about a stock of which you've never heard.

Is in the top 20 shareholders. The first holding cost less than a cent. Loses more than your mortgage on a 1¢ move and it moves 2¢ a day.

Doesn't sell on the spikes. Doesn't sell on the troughs. This is long-term, high-risk investment, but they know all the risks. Talks about the stock, and is very rich, or very poor. They ring you up when they're 60 either to (a) borrow money or (b) invite you to join them in the Bahamas.

The Day Trader If he has $1000 he has one stock worth $100,000, but he has to sell by the end of the day. Pays the average salary in dealing costs every year. High attrition rate. Only the devoted survive.

The Income Investor Through necessity or tradition is investing in equities for income. Made huge losses in the financial crisis having never sold "as long as they still pay the dividend". Has now learnt that $1 of income is exactly the same as $1 of capital, especially when it is a capital loss.

Hates the volatility. Wishes things would "just go back to the way they were". Is now thinking that 5 per cent in bonds isn't bad just so long as you can sleep at night.

The Value Investor Makes long-term declarations about stocks based on historic information and grand assumptions. Can explain everything but cannot trade and is useless at timing. Needs 50 years to prove he is right. Usually is.

The Lone Ranger An amateur trader who has given up his day job to trade the sharemarket. Will survive until he runs out of money or wakes up to the fact that trying to make $1000 a day out of necessity, even if successful, is a difficult, tough, demanding, soulless and ultimately boring existence.

The One-Stock Trader Has worked out that diversification is for people who don't know what they're doing and a lot more risky that trading one stock again and again and again. Does it quite well. Is vulnerable to once-in-a-lifetime events that seem to happen once a year.

The ETF Trader After many years trying to trade stocks has finally realised that his nirvana is trading the market through an index ETF. No need to read any research about stocks. No need to read 99 per cent of the business section.

All that matters is timing the market, which he does through vigilance and a combination of technical and fundamental "feel". He is relaxed. Has realistic expectations and trades just five times a year.

Who did I miss?

Marcus Padley is a stockbroker with Patersons Securities and the author of the daily stockmarket newsletter Marcus Today. For a free trial of the Marcus Today newsletter please go to marcustoday.com.au

Source: The Age

KLCI over the last 3 months to 17 Years (30.6.2010)

3 months (1.4.2010 - 30.6.2010)






6 months (1.1.2010 - 30.6.2010)







12 months (1.7.2009 - 30.6.2010)




2 Years (1.7.2008 - 30.6.2010)




5 Years (1.7.05 - 30.6.2010)




17 Years (Dec 1993 - 30.6.2010)

KL bourse out to woo retail investors

KL bourse out to woo retail investors
Published: 2010/06/09

Malaysia’s bourse said it’s seeking to lure individual investors who have shunned the market a decade after the Asian financial crisis.

Bursa Malaysia Bhd is working with brokerages and banks to “to reach out to retail investors in various towns and cities” to open up accounts and encourage online trading, chief executive officer Yusli Mohamed Yusoff said in an interview in Kuala Lumpur.

Trading by individuals fell to as low as 20 per cent of trading value from more than half before the start of the Asian financial crisis in 1997, when the benchmark index slumped by a record 52 per cent.

“A lot of retailers lost a substantial amount,” Yusli said yesterday. The result is that the market is now “dominated by the local institutions,” he said.

Most individual savings started shifting to mutual funds and unit trusts since Malaysia’s economy went into a recession in 1998, Yusli said. They haven’t returned to stock trading even as the economy expanded at an annual average of 5 per cent over the past decade and the benchmark index more than doubled.

The FTSE Bursa Malaysia KLCI Index has climbed 1.2 per cent so far this year, paring a gain of as much as 5.8 per cent amid concern austerity measures in Europe will reduce demand for the Malaysia’s technology and commodity exports.

Lagging Behind

The KLCI’s 45 per cent gain last year lagged behind Southeast Asian neighbors even after the government announced stimulus plans totaling RM67 billion to help pull Southeast Asia’s third-largest economy out of a recession.

Trading slumped by half to an average US$375 million a day over the six months ended May from the same period 13 years ago, right before the start of the regional financial crisis in July 1997, according to data compiled by Bloomberg. Neighboring Singapore’s figures have quadrupled to US$1.1 billion over that time, data from the city-state’s exchange show.

“People’s risk appetite is not there anymore, not like those days,” said Lye Thim Loong, who helps manage US$500 million at Avenue Invest Bhd in Kuala Lumpur. “Those who traded recklessly with no fundamental reasons got burnt.”

The slump in trading by individuals coincided with an exodus by foreigners from Southeast Asia’s second-biggest stock market, leaving Bursa more reliant on domestic institutional funds. Overseas investors have sold a net RM1.36 billion of Malaysia’s equities this year, adding to RM8.57 billion withdrawn in 2009 and RM38.6 billion ringgit that flowed out in 2008, according to exchange data. In 2007, they bought a net RM24.7 billion.

Foreigners

The exit left foreigners holding 20.6 per cent of local stocks at the end of April, down from 27.5 per cent in April 2007, according to stock exchange data. Overseas investors held 9.33 per cent of Tenaga Nasional Bhd at the end of April, compared with 27 per cent in April 2007, according to data from Malaysia’s biggest power producer.

The state-controlled Employees Provident Fund accounts for 50 per cent of daily trading volume in the equity and bond markets, Prime Minister Najib Razak said on March 30. More than half of the RM417.1 billion of market value in the benchmark stock index is owned by government-linked funds, according to calculations by Bloomberg.

“We’d rather see a more balanced distribution, so that one particular sector doesn’t dominate the market so much,” Yusli said.

Retail investors’ share of trading is low by comparison with at least one neighbor, Thailand, where individuals accounted for 56 per cent of turnover so far this year, according to data compiled by Bloomberg. Exchanges in neighboring Indonesia and Singapore don’t track the figures.

“There has been some increase in the total of retail account sign-ups recently, but the amount is negligible,” Alex Hwang, chief executive officer of HwangDBS Investment Bank Bhd in Kuala Lumpur, said in an e-mailed reply to questions. Investors are “more careful these days due to the volatile market,” he said. -- Bloomberg


Read more: KL bourse out to woo retail investors http://www.btimes.com.my/Current_News/BTIMES/articles/20100609084947/Article/index_html#ixzz0qLed7Wsg

EPF dominates 50% of the daily trading on Bursa Malaysia.

Tuesday April 6, 2010

Fund managers echo PM view on EPF trades

By TEE LIN SAY

linsay@thestar.com.my

PETALING JAYA: Fund managers agree that it is unhealthy for the Employees Provident Fund (EPF) to dominate 50% of the daily trading on Bursa Malaysia.

During his speech at Invest Malaysia 2010 last Tuesday, Prime Minister Datuk Seri Najib Razak had said the EPF’s dominance of the local equity market, with up to 50% of daily trading volume, was “not healthy” for the market or for the pension fund.

“It is no use being the biggest fish in a small pond where you can be attacked by everyone,” said a research head of a local firm.

“When this happens, your strategy is very limited and you cannot liquidate easily. It is difficult to get out, as you always need to be holding the baby. The result is sub-par performance.

“That is why it is very important for the Government to sell down its stakes in the government-linked companies (GLCs) to boost liquidity in the market,” he said.

He cited the example of Lembaga Tabung Haji, which at RM23bil, was less than a 10th the EPF’s size, and was thus nimbler and able to exit stocks easier.

Currently, the EPF has a total fund size of RM370bil and about a quarter of this is invested in the local stock market.

Meanwhile, Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said he was well aware of the challenges facing the market and was continually working with the authorities, index providers and market participants on improving free float and liquidity in the market.

“Having said that, we agree that having one particular type of investor dominating the market is not healthy for the market over the long term.

“We want to attract a diverse set of investors into our market for sustainable growth. Therefore, our current initiatives are addressing the needs and demands of a wide spectrum of investors,” Yusli said.

He said investors should also shift their mindset and look at investing in as many Bursa-listed companies as possible.

“True to the wise saying of not putting all the eggs in one basket, investors should diversify their investment strategy and not concentrate on one or a small number of stocks as this scenario is hampering liquidity,” Yusli said.

At Invest Malaysia, Najib also said the EPF would be allowed to invest more assets overseas, both diversifying its portfolio and creating more room domestically for new participants.

EPF chief executive officer Tan Sri Azlan Zainol said the pension fund planned to increase its overseas investments to 10% of the fund size over the next one or two years.

EPF declared a dividend of 5.65% for last year. This was on the back of an improved total net income of RM19.63bil, up 34.82% from RM14.26bil in 2008.

It could possibly have declared better dividends had it invested more abroad, as that would have given it more flexibility in its movements.

“It is a good thing that the EPF is going abroad. I don’t really think there is a problem of risk as the overseas exposure is small relative to its fund size and present exposure,” said a head of fixed income from an insurance fund. “Going from 6% to 10% isn’t much. So it is not increasing risk, rather a diversification and reduction of risk.”

While certain quarters said EPF was seen as the buyer of last resort for the Government’s equity stakes in GLCs, the fund manager disagreed.

“The EPF is on the ball. They know what they are doing. They will not simply take something without evaluating it first,” he said.

EPF public relations general manager Nik Affendi Jaafar said the EPF competed against other funds whenever a block of shares was offered to the market.

“In most cases, the EPF is not able to purchase shares in the quantities that we desire,” he said.

http://biz.thestar.com.my/news/story.asp?file=/2010/4/6/business/5997347&sec=business

Saturday March 13, 2010

Getting the right balance, vibrancy and diversity

WHO are the investors that we should be targeting?
Yusli: I think we need to have a good balance. At some point for the past few years, a third of our stock market investors was foreign, a third was local retail, and a third local institutions, and that was quite a good balance.
But today, more than 50% of our stock market investors are local institutions. That, to me, has gone a bit too far to one side. We need to bring the balanced equation back.
Besides a good mix of foreign and local investors, we also need to have a good mix of investors with different strategies – short-term and long-term.

There’s excess liquidity in the banking system, but these are not going into the capital market, even though some of the big caps do offer better returns compared with fixed deposits. So, maybe we should be targeting domestic funds – retail and institutional – to invest in our own market?

Yusli: Bursa Malaysia is working closely with the participating organisations such as brokers and remisiers to tap into retail money. Increasingly, we are now seeing more domestic retail investors trading through the Internet, which is in line with the global trend.
On top of that, I hope there will be further liberalisation in terms of licensing for retail sector to bring about more competition that will result in more products being offered to Malaysian retail investors. I think Malaysian consumers deserve to have a full range of products and services that consumers in other parts of the world are getting.

Most of our retail investors are not that sophisticated. So, maybe we need to provide them with some form of protection, especially when the market is subject to manipulation, among others. What’s your opinion?

Yusli: We take these issues very seriously. Investor protection and corporate governance issues are very high on our priority list. We have a special team that constantly monitors all the trading activities in the market, and we’re quick to query the companies when we suspect some unusual market activities.

Could the lack of interest in the local market be due to the lack of good quality, investable companies around?

Cheah: Well, there are many good-quality companies in the country. Some of them are not listed, but for some of those listed ones, you can hardly see any action. They are very solid, but they just want to remain quiet and stay in the comfort zone, perhaps because they are family-controlled and are not interested to do anything else. So there are very few corporate exercises.
Chin: There are some good companies around, but some of these stocks are just not “monetisable” for the broker to justify covering because their trading volume is too low. For the brokers, a counter has to trade above a certain level (that is, at least US$1mil a day for CLSA) for it to be monetisable and worthy of our time and resources.
Yusli: Some companies are a good deal, while some may have business models that are more volatile. But just as we need different traders to play our market, we also need to have a variety of companies to cater to their varying appetite, and this could create market vibrancy.
I think that’s just what’s missing today. There’s no vibrancy in our market. We need to create vibrancy because that will bring in more liquidity.
I’d like to see more corporate activities such as major IPOs and mergers and acquisitions because these will create interest and attract attention to the market.
And as part of our effort to create market vibrancy, Bursa Malaysia has already put in place the infrastructure, including direct market access or DMA, for investors to engage in more sophisticated form of trade such as shorting, but we don’t see people using them very much.
The problem is many of our investors seem to be very comfortable doing just plain vanilla trading, while the whole world has gone sophisticated with facilities like dark pools and multilateral trading facilities.

Does having foreign listings help promote vibrancy in our market?

Yusli: At the moment, we have only a handful of foreign listings in our market. Over time, we’ll have more.
Foreign listings provide diversity, especially for Malaysians who are reluctant to trade overseas, the opportunity to invest in a foreign company. But foreign listings are still a new thing for most Malaysian, so there are still some reservation over trading in those stocks.

The perception is that not-so-good companies are being listed here because they can’t get listed elsewhere.

Cheah: I think Malaysians are just not familiar with these foreign listings. Singapore, for instance, also went through a tough initial period when they wanted to introduce listings of China-based companies.
Here, we check on the companies before they are listed, and the SC also interviewed them to ensure that they are good companies. I believe the market will gradually get used to it.
Yusli: As you’ve seen, one of these foreign companies has actually produced very good results. Again, go back to the fundamentals, and the fundamentals of these foreign listings are indeed strong. Our investment bankers have done their due diligence. They are not going to bring bad companies to list here.

KLSE TRADE STATISTICS: LOCAL VS FOREIGN October 2009

http://spreadsheets.google.com/pub?key=txKJ-CJ_m_KD-Agbe6RtG5g&output=html

http://www.klse.com.my/website/bm/market_information/market_statistics/equities/downloads/trading_participation_investor2009.pdf


Observations:

The average price per unit volume of shares for the foreign institutions was MR 3.63; that for the local institution was MR 3.33.

The local retail investors were mostly into penny shares. The average value per unit volume traded was MR 0.66.

Half the volume of shares (49.96%) traded in October were generated by local retail investors.

Foreign Institutions were net buyers in October.

Local Institutions were net sellers in October.

No net change in value in trades of local retail investors. However, the volume of shares bought were higher than those sold.

The local retail investors were selling higher priced shares to buy into lower priced shares in October.

Based on value of shares traded, the Local Institutional funds were the biggest players in the local KLSE (43.69%).

Find Your Financial Style -- and Avoid Its Pitfalls

Find Your Financial Style -- and Avoid Its Pitfalls
by Jonnelle Marte
Tuesday, October 27, 2009
provided by The Wall Street Journal

There are few relationships more complicated than the one we have with money.

Some of us are intimate with our finances, endlessly doing research and keeping track of every penny. Others are more distant; they have a general idea of where their money is going, but aren't sure if it's the right move or if it's enough. Then there are the emotional ones, those who cling to money at the wrong times and make impulsive decisions.

So, what kind of investor and saver are you?

Not sure? Ask yourself these questions: Do I consistently keep track of my spending? And do I do so weekly, monthly or annually? Do I feel that I'm OK financially as long as my checks don't bounce? Do I plan and save for big purchases or do I buy on a whim?

There also are online quizzes, such as J.P. Morgan Chase's "Financial Styles" found at ChaseFinancialStyle.com, that can help you determine your investing and saving profile.

Once you determine your style, you can use certain strategies and tools to reinforce the positive aspects of your approach -- and contain the negative ones.

Understanding your financial approach can help you figure out where your "strategy is most vulnerable to pitfalls or problems," says Hersh Shefrin, a professor of behavioral finance at Santa Clara University who helped J.P. Morgan Chase develop its quiz.

The Analytical Investor

You're a stickler for details and data. And while it's good to be thorough with your research, if taken to an extreme people can forget to take their personal situation and goals into account when making financial and investment decisions.

This type of investor can get hit with what some advisers call "analysis paralysis," where they have trouble making decisions because they can't help thinking there is always more research to be done.

"They're what I call 'see mores' -- they always want to see more," says Bryan Place, founder of Place Financial Advisors, a financial-planning firm in Manlius, N.Y. "Rather than overwhelming themselves and spending too much time digging through content," they should limit themselves to three or four reliable sources, he says.

If you have a tendency to delay acting on your financial goals, Mr. Place says, make a list of the pros and cons and give yourself a deadline to decide -- and stick to it.

While you may be great at budgeting, you might benefit from online expense-tracking tools offered by Mint.com or financial-planning software from Quicken (quicken.intuit.com) that can help you distance yourself from your day-to-day transactions to recognize spending and saving trends over time.

At Mint.com, you can build graphs that show how your spending, income, debt or net worth has changed over a specific period. You also can see changes in spending in certain categories, such as groceries.


The Big-Picture Investor

You know your bottom line, but you don't keep track of every transaction or plan every action or expense. While this approach can be less stressful if you're able to consistently save and meet your financial goals, it can leave you unsure about exactly where your money is going and where you can cut back.

To avoid falling into a set-it-and-forget-it routine and ending up with outdated and unsuccessful strategies for investing and saving, review your strategies at least once a year. For instance, the retirement-savings plan you started five years ago might not be on pace to fund the lifestyle you live today given the recession, so re-evaluate allocations at least once a year, says Carlo Panaccione, a financial planner in Redwood Shores, Calif.

Break down your expenses into two categories: "necessities," which would include mortgage payments, utility bills and food; and "lifestyle," optional costs such as cable television and gym memberships, says Larry Rosenthal, a financial planner near Washington, D.C. Tools at Mint.com and Quicken's software allow you keep track of spending in each category.

To monitor your spending, use a debit card or credit card instead of cash, says Mr. Place, and look at your accounts online at least once or twice a week. But make sure to pay off the credit-card balance each month.

Meanwhile, online calculators such as the one offered by Discover Financial Services, discoverbank.com/calculators.html, can help you devise a monthly plan for reaching a long-term savings goal.

The Emotional Investor

Emotional investors are reactionary, often making financial decisions based on what's happening at the moment and ignoring long-term needs and goals.

"They might look at it as 'Gee, my kid's education is really coming up soon, I have to focus on that and kind of put their retirement on the back burner," says Mr. Panaccione.

For such investors, he suggests creating two lists: one with short-term goals, such as a vacation or car purchase, and one with long-term goals, such as saving for retirement.

Then, set up savings or investing accounts for each goal -- one account for, say, the purchase of a house, one for retirement and another for college tuition. To ensure that each portion is funded consistently, set up automatic deposits to each account, says Mr. Rosenthal.

Matt Havens, partner at Global Vision Advisors, a financial-services firm in Hingham, Mass., suggests forcing yourself to plan for emergencies by building a cash reserve to cover at least six months of expenses. Having that safety net will help you avoid an impulsive move.

And when it comes to investing, don't make drastic changes to your asset allocation. "A main weakness of this group is that they tend to buy high and sell low because of emotion and fear," says Bryan Hopkins, a financial planner in Anaheim Hills, Calif. It might help to sit down with a planner to create a long-term investment plan.

http://finance.yahoo.com/banking-budgeting/article/108022/find-your-financial-style-and-avoid-its-pitfalls;_ylt=Aue6pPmm7eT0U980IRHY3ha7YWsA;_ylu=X3oDMTFhYjhrOGtsBHBvcwMzBHNlYwNwZXJzb25hbEZpbmFuY2UEc2xrA3NtYXJ0d2F5c3Rvcw--?mod=oneclick

TRADING PARTICIPATION BY CATEGORY OF KLSE INVESTORS

Statistics are based on monthly total trading value on Bursa Malaysia Securities.

The graph is updated mid-month, e.g. January's data is updated in mid February

Oct 08 - Dec 08
Domestic Individual 4% 31% 23%
Domestic Institution 36% 34% 34%
Foreign 40% 35% 43%

Jan 09 - Mar 09
Domestic Individual 26% 22% 22%
Domestic Institution 42% 40% 40%
Foreign 32% 38% 38%

Apr 09 - Jun 09
Domestic Individual 36% 42% 43%
Domestic Institution 41% 37% 36%
Foreign 23% 21% 21%

Jul 09 - Sept 09
Domestic Individual 30% 30% 26%
Domestic Institution 47% 46% 45%
Foreign 23% 24% 29%

Graphical format:
http://www.klse.com.my/website/bm/market_information/market_statistics/equities/downloads/trading_participation_investor2009.pdf