Prepare for raya rally...what's the target.. let Tan Sri & big boys decide....AGM only for adoption of financial account, re elect director,auditor, dividend but no discussion on merger... Discussion on approval of merger normally at EGM...
KUALA LUMPUR: The listing of more Islamic financial institutions on Bursa Malaysia is needed to boost the Islamic fund and wealth management industry going forward.
Permodalan Nasional Bhd (PNB) group chairman Tan Sri Abdul Wahid Omar said this would also strengthen Malaysia’s position as a global hub for such funds.
He said of the 672 syariah-compliant securities listed on the local bourse, omly two were from the finance sector, namely BIMB Hodings Bhd and Syarikat Takaful Malaysia Bhd.
“The finance sector has thus the lowest number of syariah-compliant listed securities available.It also places the percentage of syariah- compliant securities under the sector at only 6%,” he told the International Islamic Fund and Wealth Management Forum here yesterday.
He said the shortage of listed Islamic finance institutions could pose big challenges to the industry, especially for the government linked investment companies (GLICs) such as PNB, Lembaga Tabung Haji, and Kumpulan Simpanan Pekerja, as they are expected to provide syariah compliant dividends to Muslim investors in Malaysia.
As such, it is impossible to provide a competitive return if GLICs have to avoid investing in the financial sector, since there are only 6% of syariah-compliant securities listed on Bursa Malaysia, he added.
He also suggested three possible ways to further grow the industry.
The first is the formation of a second listed Islamic universal banking group, apart from BIMB Holdings, which could be anchored by Malaysia Building Society Bhd (MBSB), Bank Muamalat Malaysia Bhd, Malaysia Industrial Development Finance Bhd (MIDF) or one of the larger foreign-owned Islamic banks.
The listing of some of Islamic Development Finance Institutions such as Bank Simpanan Nasional and Bank Rakyat is a second option.
The third approach is the creation of a separate listing of “Islamic” or “i-share” among banking groups that have sizeable Islamic finance activities embedded within them, such as Maybank, CIMB and RHB.
“For example, up to 25% of Maybank”s profit is derived from Islamic finance.
“Since Maybank Islamic is a wholly-owned subsidiary and an integral part of Maybank, we can designate say 20% of the latter”s shares as Islamic shares, via some ring fencing arrangements,” he explained.
He said based on Maybank’s market capitalisation of RM97bil, this initiative would create a new class of syariah compliant investment instruments worth RM19bil.
“Of course this will require a lot of consultations with the Securities Commission, Bank Negara and Bursa Malaysia.
“With positive thinking in trying to solve a problem, I believe we can come up with the right solutions,” he later said at a press conference. – Bernama
Time will tell MBSB is good counter or not. People always tend to chase high when the news is out. Keep asking still can in or not, want chase high, what is the TP and so on. But dont want buy before news. Human is weird.
The proposed merger negotiations between MBSB and the smallish Arab Islamic Bank- Asian Finance Group(AFG) was given by the authority which is Central Bank(Bank Negara) to be completed within six months from the announcement date circa 22 Dec 2016.
2.Basing on the news report another 1-2 months to go before they get back to BN on the outcome.The market is expecting the negotiations will succeed this time after two failed attempts with other banking parties.
3.Normally,the market will move ahead of the announcement.Roughly the market price trend and momentum will indicate whether the proposed merger will succeed or not.Seem the momentum is building up towards the deadline.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
chkhooju
1,706 posts
Posted by chkhooju > 2017-04-30 11:17 | Report Abuse
In and out from 98¢,each time manage to make children feed profit. Dare not stay long because of the risk involved.