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Author: Tan KW   |   Latest post: Tue, 25 Feb 2020, 6:40 PM


Why ordinary investors are shunning Bursa Malaysia - TK Chua

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TK Chua  |  Published:


LETTER | I refer to the letter, “Stock market fastest way to stimulate economy”, as published in Malaysiakini today.

I think the views presented in the letter are not holistic and comprehensive. In fact, they are quite one-sided and biased.

To me, it is not surprising that the Malaysian stock market has lost its lustre. The market is no longer a venue for investment, but rather more for speculative play and gambling.

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.

Even seemingly investment stocks are going nowhere. Sometimes I wonder why Malaysian owned companies have not made as much profits as some foreign-owned companies listed in Bursa Malaysia.

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. 

Sometimes I see captains of industries and bosses of corporation destroying rather than creating values.

I think there is no such thing as “great companies trading at depressed value” or bad companies trading at a boisterous price if the stock market is relatively efficient and transparent.

Right now, many ordinary investors choose not to invest in the stock market because the odd is not in their favour. Short of using harsh words, many listed companies are con jobs.



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  5 people like this.
Shinnzaii Yes...especially IPO...
22/04/2019 10:12 AM
UnicornP I think Bursa is still tame. Try play Hang Seng. As for those con companies, you must be smart enough to avoid it. Simply said, stock market is really not for the naive and faint-hearted or maybe not so rich people.
22/04/2019 10:22 AM
FAIRnREASONABLE Agree with TK's viewpoint.

Regulators should be more forthcoming in enforcing the rules.
22/04/2019 7:59 PM
DickyMe Absolute truth.
23/04/2019 10:39 AM
qqq3 negativism never wins any thing..............
23/04/2019 10:40 AM
Fabien "The Efficient Capital Allocater" many listed companies are con job

totally understand such negativism. must be a frustrated lot this author
23/04/2019 11:34 AM
qqq3 tk can win fans but cannot make money
23/04/2019 11:47 AM
apolloang fully agreed,after many people buy the insiders dump,sit and wait till the people sell at lower price then only they push it up,otherwise they let u people hold then they list new ipo and let people stuck.all crooks,that is why we must not hold a lot or else all stuck until u cannot move
23/04/2019 11:49 AM
apolloang many stocks in bursa just a 2 players game,u and the insiders are playing only
23/04/2019 11:54 AM
NavinShah Buy only blue chips. Don't buy landi buchi (thives) company stocks.
23/04/2019 2:46 PM
hollandking navinshah, u r so right, if want to be safe
23/04/2019 2:48 PM
qqq3 regulatory bodies and systematic risk in Malaysia world standard already
23/04/2019 2:49 PM
hollandking quite true, most r gamblers these days, isnta bout fundamental, is about SHOW ME THE VOLUME and $$$$, then ppl will come jumping in.
23/04/2019 2:51 PM
wlchew go to genting casino. you stand a better chance there. I have been trading on klse for the last 50 years and I have yet to make $1. How come I survive for so long is bcos in the early years my remiser don't fully trust me. I place order to buy 5 he buys 1 as worried I can't pay . I had never gamble on margin so no force selling and still wearing my underwear
23/04/2019 3:54 PM
DreamKentut "qqq3 regulatory bodies and systematic risk in Malaysia world standard already"

It is only compliance but not in implementation. Just like sticking a signboard but no one cares!
23/04/2019 10:16 PM
DreamKentut Problem is listed companies are not investment worthy because companies have parasitic elements to siphon the profit. Almost 90% do not give dividen, even if it exist, it is chicken feed. Share price trades at penny stock level, massive outstanding shares in the range of BILLIONS. Revenue hardly justifies the billions.
23/04/2019 10:22 PM
ahbah Sometimes, even old bird like KYY got corned by some cornman cos.
23/04/2019 10:40 PM
calvintaneng Posted by ahbah > Apr 23, 2019 10:40 PM | Report Abuse

Sometimes, even old bird like KYY got corned by some cornman cos.



23/04/2019 10:43 PM
23/04/2019 10:46 PM
qqq3 y DreamKentut > Apr 23, 2019 10:16 PM | Report Abuse

"qqq3 regulatory bodies and systematic risk in Malaysia world standard already"

It is only compliance but not in implementation. Just like sticking a signboard but no one cares!

scandals in Singapore and Wall Street just as bad.
23/04/2019 10:49 PM
kmohan62 ...dividends are real..they don't lie...just go for those companies that pay dividend regularly,better still every quarter...one example is VS Industries.
24/04/2019 9:35 AM


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