Lowyat.NET: Latest topics by lilyginger

Cover Up murder case close to GE14

lilyginger — Mon, 09 Apr 2018 16:15:04 +0800

Please click this link for the news

Brothers of PDRM officer involved in Murder

As the GE14 is looming, this murder case of a Custom Officer Anisah Ali still remain unsolved as of today. There was independent report by Sanjeevan of Mywatch (also reported in Kecoh in the link) stating that the suspect Mat Yeh or real name Nawawi Husin is actually brothers of DSP Ibrahim Hussin who is the Head of Crime Investigation in Gombak.

Abangnya DSP Ibrahim Hussin kini adalah Ketua Bahagian Siasatan Jenayah Daerah Gombak dan sebelum ini pernah bertugas di Bahagian Siasatan Jenayah (D7) Bukit Aman di bawah Bekas Pengarah Jabatan Siasatan Jenayah (JSJ) Mohamad Salleh (Pengarah Narkotik sekarang & kawan GOPI) dan Ketua Penolong Pengarah D7 Bukit Aman pada ketika itu Datuk Roslee Chik yang kini merupakan Timbalan Ketua Polis Pulau Pinang.

Adik (Nawawi Hussin) adalah Tonto yang dipercayai menjalankan sindiket penyeludupan rokok dan mercun antara terbesar di Kelantan, manakala abang (Ibrahim Hussin) adalah Pegawai Kanan PDRM, sungguh ironi bukan?

Although multiple news outlet reporting this investigation finding and it have already been more than one year this murder case had happened, no action have been taken by the enforcement.Please click the link below for more reporting;

Family demand justice for Anisah Ali

"The only suspect in the case was released by police in November 2016, and Afiq said that there has been no progress since then.

PKR MPs Abdullah Sani and G Manivannan, along with DAP’s Batu Kawan MP Kasthuri Patto received the memorandum from Afiq and urged for action be taken by authorities to deliver justice for Anisah, and said that the activities of touts should be stopped.

“What happened to Anisah Ali should not happen to any other officer,” Kasthuri said during a press conference at the Parliament media room today."

[I]The IGP during Anisah Ali case is Tan Sri Khalid Abu Bakar who is currently the Prasarana Malaysia Bhd (Prasarana) group chairman and Apex Equity Holdings Bhd non executive director.

Ranking of Bursa Malaysia among world exchanges

lilyginger — Mon, 19 Feb 2018 16:51:54 +0800

List of Stock Exchanges and Market Cap

By regionally;

1)Singapore Stock Exchange market cap = USD$608.08 Billion
2)Stock Exchange of Thailand market cap = USD$449.55 Billion
3)Indonesia Stock Exchange market cap = USD$431.81 Billion
4)Bursa Malaysia market cap = USD$372.72 Billion

Our exchange and SC is still busy with suffrages cause, championing with feminist on putting women into the board of PLC and engaging PLC who have not put in woman PLC in their Board.

I wonder if thats the right priorities when all the exchanges regionally(some like Thailand and Indonesia stock exchanges that are previously smaller than Bursa Malaysia) is performing better than us.

Woman on Board : SC greatest achievement

lilyginger — Wed, 14 Feb 2018 16:20:14 +0800

SC: Only 7of top 100 listed companies have all-male board members

This is a 65% improvement from 20 companies as at Dec 31, 2016.

The SC said in a statement that the seven remaining companies were Affin Holdings Bhd, Alliance Bank Bhd, Batu Kawan Bhd , Fraser & Neave Holdings Bhd, Genting Plantations Bhd , Genting Malaysia Bhd and UOA Development Bhd

Currently, the SC and the 30% Club Malaysia have been actively engaging the companies.

Malaysia stock market is not even as big as Hong Kong nor US, and yet our SC is making so many rule championing the cause like woman, more rules and many unreasonable requirement. One day the stock market in Vietnam, Thailand and Indonesia will be bigger than Malaysia. SC priority is not the market but cheap publicity.If SC is serious then the market would have grown leaps and bound by now. So SC better get their priorities right, rather than just becoming some feminist organisation because they are suppose to be ensuring a strong stock market. Learn back what is right in the 90s rather than just a follower of US rules.

Rude MAICSA in handling students enquiry

lilyginger — Fri, 13 Jan 2017 11:49:51 +0800

I was planning to further my studies by registering with MAICSA and I already have diploma in Business Studies prior to application. When I was checking through the MAICSA website, they only give exemption for holder of Advance Diploma although you already have working experience. That means have to take all the 8 papers from scratch for the PDCA before moving to ICSA exam.

The person handling the exam and exemption in MAICSA is Ms T was extremely unprofessional, she can just say she have emailed you this and that although you have never receive any emails from her and she can just be so rude and say like in the year ### we will no longer be accepting the diploma paper so off you go.

I think MAICSA is very unprofessional and I am not sure what can the MAICSA certificate be used besides doing company secretarial job?

Newly opened Kajang Setia Hardware Trading

lilyginger — Sun, 20 Jul 2014 10:21:13 +0800

If you are in Kajang/Semenyih or on the way to Kajang/Semenyih, please drop by to this address:

Kajang Setia Hardware Trading
G07 Jalan Anggerik Perdana 1
Taman Anggerik Perdana
43500 Semenyih.

I have purchased two tin of 5 litre Nippon Paint Vinilex Easywash on yesterday and I was given discount and freebies with the purchase. Check out the pictures.
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50% of GST will go to MyEG, so how?

lilyginger — Wed, 26 Feb 2014 16:26:43 +0800

A Real Taxing Deal

THE opposition to the Automated Enforcement System (AES) was overwhelming. Even the politicians on the government side did not hide their contempt for what was deemed as the "piratisation" of the enforcement of traffic laws.

It was not the system that was in question, but the methodology used in awarding the "sweetheart" deals to two companies. After all the hoo-ha, the government decided to take it upon itself to implement the system and in the process, has talked about compensating the two firms to the tune of RM400 million.

How the figure was arrived at will continue to be hotly debated.

With 13 months to go before the implementation of the goods and services tax (GST), the policymakers have yet again put their feet in their mouths by entering into a "profit-sharing" agreement with a private firm.

This unprecedented arrangement has been reported in the media and its pitfalls have been highlighted by a financial institution commenting on MyEG's announcement that it had signed a letter of award with the Customs Department to wire up businesses that are required to pay tax to the government.

CIMB Research analyst Nigel Foo says MyEG will get 20% of revenue collected – above a preset base.

This 20% is based on an understanding that 50% of revenue collected will go to the government, while the remaining 50% will go to MyEG's consortium which was awarded the project and in which MyEG has a 40% stake.

"Phase 1 of the project's revenue base case is around RM800mil annually, growing 8% to 9% every year," Foo told clients in a report.

So, in short, 50 sen out of every ringgit that all Malaysians will have to pay in GST will end up in someone else's pocket – not the government coffers.

And mind you, the contract is for a period of six years, commencing from April 1 and this means billions meant for the government will go into "administration, management and collection".

News of this agreement has got tongues wagging and more importantly, this was a "negotiated tender exercise" without open tenders or prior consultation with the stakeholders.

The obvious question will be to ask the need for a third party to collect government revenue. The obvious answer will be that "we do not have the resources and the expertise" which is no longer acceptable.

For the record, let it be said that the department has collected and is continuing to collect government sales tax without any help or support from any outside party.

Shouldn't the department undertake the exercise and make a one-off payment and pay maintenance costs instead of losing half its revenue in perpetuity?

One would have thought that after the AES fiasco, the government would have accepted the need for public consultation and the practice of negotiated deals.

This deal flies directly in the face of the "new" government policy of open tenders which was announced by Minister in the Prime Minister's Department Datuk Paul Low four weeks ago.

These are issues that cause the rakyat to be sceptical and suspicious of the government's grandiose announcements on good governance. First, the AES and now, the GST can be viewed major failures of the much-touted Government Transformation Programme (GTP).

Simply put, this whole exercise is opaque and a re-affirmation that the government will continue to undertake "nego-tenders" with total disregard for transparency and accountability.

What will they think of next? Getting debt collectors to collect income tax?

Clear and consistent

HE's in his mid-forties and is a public figure. Everyday, he's in the newspapers and on television and hence, pays attention to his personal appearance. He's a fitness freak too. When he was on the other side, he used to be cycling around the city centre.

These days, he's chauffeur-driven with armed bodyguards. But the seat he occupies keeps him busy all day and yet he finds time to pump iron at the gym and has a personal trainer.

The operators of the gym did not charge him for the trainer's services, but he chose to make a personal donation to a charity of the trainer's choice.

How do I know this? I visited the website of the House of Commons and he happens to be the British prime minister, his and the interests of all British MPs are available on the website. Need anything more be said about transparency?

Bursa chief’s 17% pay jump raises eyebrows

lilyginger — Mon, 01 Apr 2013 16:57:10 +0800

KUALA LUMPUR: The 17% pay cheque rise of Bursa Malaysia Bhd’s chief in a span of one year has attracted the attention of the minority shareholders.

Some minority shareholders raised the question over the perceived big jump in the total remuneration of Bursa Malaysia CEO/ED Datuk Tajuddin Atan (picture) at its AGM yesterday.

Tajuddin, who came on board the local bourse in April 2011, took home a total director’s remuneration of RM5.55 million for the financial year ended Dec 31, 2012 (FY12).
In the previous year, he took home a total of RM3.55 million, which covered a nine-month period. If prorated, he received a 17% jump in his total remuneration within a year.

The amount is also higher than the RM1.54 million taken home by Datuk Yusli Mohamed Yusoff for FY10.

The CEO’s remuneration package comprises a fixed component which include a monthly salary and benefits- in-kind/emoluments such as gratuity, a company car, a driver and leave passage, according to information published in the bourse’s 2012 annual report released yesterday.

It also comprises a variable component which include short-term incentives in the form of a performance based bonus and long-term incentives in the form of shares under the restricted share plan and performance share plan.

Before this posting, Tajuddin was RHB Capital Bhd group MD between 2009 and 2011. He also assumed the position of RHB Bank Bhd MD. For FY10, his last full year at the financial institution, Tajuddin took home a total package of RM2.23 million.

Meanwhile, Bernama reported that Bursa Malaysia aims to increase its retail participation from the current 14% and initiatives to the effect have been put in place.

Among the key initiatives are the profiling of companies listed on Bursa Malaysia, Tajuddin told reporters after the bourse’s AGM.
“Our companies have grown, they used to be domestic champions and now they are regional champions,” he said, adding that Bursa Malaysia would also facilitate products and services for trading purposes.

In its FY12, Bursa Malaysia’s average daily trading value for the securities market eased to RM1.67 billion from RM1.79 billion in FY11.
As a result, trading revenue dwindled to RM178.3 million from RM193 million in 2011 due to continuous global market uncertainties. However, the decline was cushioned by support from domestic institutions. Tajuddin said Bursa Malaysia received interest for initial public offerings in Malaysia.

“The overhang through the general election seems to hold things a little bit but I am positive to say that if it is done and over with, hopefully, we see some traction at least in the second-half of the year,” he said.

On growth, Tajuddin said the exchange expects an increase in its business segments.

In another development, Bursa Malaysia has launched eRights to facilitate investors to do electronic subscription and payment system when subscribing to rights issues.

As a result, individual shareholders will be able to subscribe to rights via ATMs and Internet banking facilities of participating banks.
Bursa also launched the Nominee Rights Subscription e-services to facilitate electronic rights subscription and payment for nominee companies.

Tajuddin said the eRights is another initiative by the exchange to create a more facilitative trading environment.
Recent initiatives rolled out by Bursa include the rule amendments to allow listing of Business Trust and Foreign Collective Investment Schemes and the revamped business rules for securities brokers.

Actual article is in FMT News (click this link); 17% Pay Cheque Rise of Bursa Malaysia CEO Raised Eye Brow

Abducted, robbed and raped in KL-5th Feb 2013

lilyginger — Thu, 07 Feb 2013 08:35:44 +0800

Today on the headline in The Sun Newspaper(click here to read more) : Robbed & Raped > Saleswoman suffers four hour ordeal after being dragged into van by four men

KUALA LUMPUR (Feb 6, 2013): A 26-year-old saleswoman was abducted, robbed and taken on a terror ride before being raped by one of her assailants here early today.

Her ordeal began when she was parking her car outside her apartment compound in Taman Desa Jaya, Kepong at about 11pm on Tuesday.

As the victim, who works for a jewellery outlet in Sungai Buloh, was parking her car, a van suddenly drew up alongside.

Four men then rushed out and began smashing the windscreen and windows of her car, before dragging her into their van.

According to police sources, the woman was then blindfolded while one of the men went through her handbag for cash and valuables.

Apparently dissatisfied with the small amount of cash and her cellphone that they found in the handbag, the robbers forced her to reveal the personal identification number (PIN) of her bank automated teller machine (ATM) card.

They then went to an ATM machine from which they withdrew several thousand ringgit.

Her ordeal did not end there as the men then drove the victim to a house.

There she was threatened with harm if she did not give in to the sexual demands of a member of the gang.

It is learnt that the victim, who was blindfolded throughout the ordeal, was raped by the man while his accomplices watched.

At about 3am, the gang members dropped the victim off at an undisclosed location in Segambut.

The woman then sought the help of passers-by who took her home before she called the police.

Gombak police chief ACP Abdul Rahim Abdullah said police are on the trail of the gang members.

He said police are confident of identifying the men, who are believed to be ex-convicts.

"We are trying to trace from which bank branch they withdrew cash with her ATM card, and where she was raped.

"We believe this is the same group we busted last year and sent away to the Simpang Renggam detention centre, but they were freed following the repeal of preventive laws.

"We are working round-the-clock to track them down," Abdul Rahim said.

Cameron Highland paranormal activities

lilyginger — Sat, 01 Dec 2012 16:10:37 +0800

Everyone know now Cameron Highland no longer pristine and peaceful like last time(too many express bus causing jam from Brinchang onwards for 1 hour++, too many development and not cold anymore and too many commercialization all selling strawberry souvenir), so we come up with alternate activities in Cameron Highland that will make the trip more memorable;

a)paranormal activity to find Jim Thompson again

b)stay with orang asli at their bamboo hut/house( be warned, no flushing toilet)

c)Competition on creative post with strawberries souvenir in Cameron Highland (must be very creative, cannot average post)

d)Swimsuit marathon Brinchang to Tanah Rata or vice versa since Cameron Highland is no longer cold.

Please click for more on this link : Cameron Highland Today!

Jokes about electrical tariff

lilyginger — Sat, 01 Dec 2012 10:41:37 +0800

I find sometime too many thing too serious, so I want to know if anyone can joke about electrical tariff;

For domestic consumer which mean consumer occupying private dwelling which is not used as a hotel, boarding house or used for the purpose of carrying out any form of business, trade, professional activities or services, the rate is as per the following;

First 200KWh(1-200) per month - 21.8 sen/KWh
Next 100KWh (201-300)per month - 33.4 sen/KWh
Next 100KW/h(301-400) per month - 40.0 sen/KWh
First 100 KWh (401-500) per month - 40.2 sen/KWh
Next 100KWh (501-600) per month - 41.6 sen/KWh
Next 100 KWh(601-700) per month - 42.6 sen/KWh
Next 100 KWh (701-800) per month - 43.7 sen/KWh
Next 100 KWh (801-900) per month - 45.3 sen/KWh
Next KWh from 901 onward per month - 45.4 sen/ KWh

Minimum monthly charge is RM3.00

Tariff for business owner to be categorized under Commercial Consumer-Tariff B

According to TNB website, Tariff B is for Low Voltage Commercial Tariff and for overall monthly consumption between 0-200 KWh/ month. The rate is flat at 39.3 sen/KWh if consumption is between 1-200 KWh and 43sen/KWh if consumption exceed 200 KWh per month. The minimum monthly charge is also RM7.20.

Get the detail over here : ELECTRIC TARIFF

Strawberry Kijal Resort Apartment

lilyginger — Tue, 06 Nov 2012 20:24:35 +0800

Hi everyone,

This is an apartment to let for traveler in Teluk Senajang, Kemaman, Terengganu. I stumbled upon this apartment when I was looking for accommodation for my trip to Kijal.

Click here for the website : Strawberry Kijal Resort

It look kind of comfortable but there is other other story like its a rundown.

Have anyone been to this resort before?

Care to share the story?

Should we just forget about Bursa Malaysia?

lilyginger — Mon, 25 Jun 2012 20:40:34 +0800

Hi everyone,

Today there is an article inside "The Sun" newspaper, so what would all of you think? Malaysia Boleh can also mean Bursa Boleh??

Bursa Malaysia losing its glitter

Posted on 25 June 2012 - 05:42am
BY Kang Siew Li
sunbiz@thesundaily.com

PETALING JAYA (June 25, 2012): Once considered the third-largest market in Asia after Tokyo and Hong Kong during the 1990s, Bursa Malaysia now needs to do more or risk falling further behind its competitors, analysts warned.

They said it's not enough to pay lip service to the goal of developing Bursa Malaysia into an attractive and competitive exchange in the region, but not act on it.

"In the early 1990s, Bursa Malaysia (then known as Kuala Lumpur Stock Exchange) used to be on par with Singapore's stock exchange (in terms of vibrancy). Back then, volume in the Singapore stock market was very much dependent on Malaysia when investors in Singapore were allowed to trade Malaysian shares on the CLOB (Central Limit Order Book system) market," said an analyst.

"In fact, when trading on CLOB was halted in September 1998, some had predicted the demise of the Singapore stock exchange due to its heavy reliance on Malaysian shares. But over the years, Singapore has managed to successfully reinvent itself, attract many foreign companies to list there and even surpassed Malaysia in stock-market capitalisation.

"Taking a look at the history of the stock market back in the 1990s to now, it's clear Bursa Malaysia has deteriorated in terms of status and attractiveness. In those days, a foreign fund manager cannot ignore Malaysia as a market. Today, the Malaysian stock market is being marginalised," he told SunBiz.

Market capitalisation of Bursa Malaysia stood at US$395 billion as at end-2011, with market velocity standing at 33%. In comparison, Japan's stock market capitalisation was US$3.5 trillion as at Dec 31, 2011, while Hong Kong's was US$2.8 trillion and Singapore's US$464 billion.

"It is relative and arguable whether Bursa Securities is doing enough or can do better to make Bursa Malaysia attractive, as it depends on which exchange you are measuring with. Back then, we used to be measured against Hong Kong and Singapore. If that is so, we are definitely nowhere near them now.

"Rather, these days, people compare Malaysia with Indonesia, Thailand and the Philippines. We are down to that league. Of course, if we compare ourselves to these countries, we are much better in selected areas. But a question we should ask ourselves is, 'Is it fair to compare ourselves with these countries when we used to be in a different league?'" said the analyst.

"What is our niche? Also, Bursa Securities boasts that there are currently 929 companies listed on the local bourse. Do we emphasise quantity over quality? How many listed companies that are of decent size and quality for foreign investors to invest in today? What is the point of having hundreds of companies, but only a handful are regarded as investable?" he asked.

The analyst also noted that the government's aim to increase the free float of listed government-linked companies has been slow in coming.
"And during his speech at Invest Malaysia 2010, Prime Minister Datuk Seri Najib Razak had said the Employees Provident Fund accounted for up to 50% of the local equity market's daily trading volume, which is not healthy. From an efficient market perspective, the stock market must be liquid enough such that no one single player can control the market," he added.

In addition, the introduction of new investment products such as exchange traded funds and regulated short selling facility have seen little response as seen in their low trading activity.

A research head from a local brokerage said another a sign of Bursa lacking in vibrancy is the growing number of Malaysian companies seeking to dual-list.

"You don't see a foreign company seeking dual listing in their own market as well as Malaysia," he said.

The research head believes that Bursa Securities can do more to increase the market's volatility and activity. For one, it could ease the ratio limit before serving an unusual market activity (UMA) query to a company.
"That's because an UMA query gives a negative sentiment to investors."

"We need to have our foundation/regulatory framework sorted out first before we move to offer new hybrid investment products. We also have to increase the number of foreign investor participation in the local market. There's no point in introducing new products without the market players," he added.

Another research head sees a need to improve the quality of listings on Bursa Malaysia to attract both foreign and local investments.

While analysts said Bursa Securities should do more, they said the government must move hand in hand with the stock exchange operator to attract more foreign capital to invest here and the local equity market, as well as big foreign companies to set up here.

"To say whether our market is vibrant or not, sometimes it depends on not just the stock market operator but also the country's dynamics. People look to Singapore because it has an established financial centre," said Etiqa Insurance & Takaful's Investment Management Division head of research, Chris Eng.

He said Malaysia also has to decide whether it wants to attract more institutional investors or more retail investors.

"If you want to be like Hong Kong and attract more retail investors, then the rules there appear to be less tight. But if you want to attract more institutional investors, then you need to allow more asset management companies to set up here, like in Singapore. However, that is outside the authority of Bursa Securities and under the Securities Commission's jurisdiction," he added.

"Thus, there is only so much Bursa Securities can do. You attract foreign companies to list here, but your own government is not supportive, then it reflects badly on you and nobody else wants to come," said Eng.

Opinion on Designation of share counter

lilyginger — Fri, 18 Nov 2011 14:17:56 +0800

Hi Everyone,

I found an interesting article online that was written way back in 1996 about the designation of shares counter;

Does Designating Securities really work?

The Kuala Lumpur Stock Exchange (KLSE) has been actively designating several securities, including Paragon, Repco, and Sarawak Concrete, in the last year. The designation imposes trading restrictions on the counters. Specifically, the buyer of the stock must pay cash upfront for the purchase and the seller is required to deliver the share scrips before any sale. This policy measure is intended to curb excessive speculation, reduce price swings, and protect minority investors. The question addressed here is whether designating securities succeeded in achieving these objectives?

A straightforward case study analysis of the three episodes suggests that designation appears to do more damage than good. More often that not, the announcement of a designation sends the share price to a free fall for a short period but a sharp rebound occurs quite shortly after that. The volatility of the stocks increases two-fold with such an announcement.

Another important effect from the designation is on the liquidity of the stock. The imposition of these trading rules reduces the liquidity of the stock as sellers must have the scrips in hand and contra-buying is not permitted. Surprisingly then, the thinner liquidity actually facilitates the manipulation of a stock. A small volume of buying during the post-designation period can lead to large price jumps, causing even more volatile price behaviour. Not surprisingly then, we observe for the episodes summarised below that dramatic price increases follows even after the designation of a stock.

Given the impact such announcements have on the behaviour of the stock price, it is hard to defend the authorities' action as being protective of minority interests or as a dampener on price swings. On the contrary, the episodes suggest that designation increases volatility and reduces liquidity, hurting minority investors in the process.

Super Enterprise: April 2

Super Enterprise, which was listed with an offer price of RM2.40 in April 1993, had been rising aggresively. On April 1, the share price closed 14.4 percent higher at RM28.25, on rumours that there may be a reverse takeover of the company.

The designation on April 2 reined in the share, bringing down the price by 34 percent to RM18.60 at the close, down RM9.65 from the previous day's close. The designation squeezed Super's trading volume from 2.5 million shares to only 0.25 million shares, 10 percent from the previous day.

On April 3, Super rebounded up by RM4.40 or 24 percent to close at RM23, with some volatile trading as the price swung from a low of RM17.70 to a high of RM24.90. By April 12 when the curb on Super Enterprise was finally lifted, the share price had climbed to RM28.50, back to where the price was when it was designated. On April 13, the share price soared RM1.50 to reach another record high of RM30.

Sarawak Concrete: July 4

On July 4, the KLSE designated Sarawak Concrete after the stock hit limit-up twice on rumours that the company would be getting contracts from the Bakun dam project. The stock had jumped RM6 to end the day at RM16.10 on July 3.

The designation had a temporary effect as the share price dipped 13 percent to RM14 in early morning trade on July 4. By late morning however, the stock hit limit-up to RM20.90, and a second limit-up in the afternoon to finish at RM26.40 on closing. Liquidity had shrunk on the counter, and it took only a volume of 133,000 shares to move the counter by RM10.40 or 64 percent.

Paragon: November 12

More recently, Paragon became a designated stock with effect from Nov 12 after the stock soared up by RM1.60 on Nov 7, and by another RM5.60 on Nov 8 to close at RM22.40. Volumes traded on Nov 8 and Nov 7 respectively were 4.8 million and 5 million shares respectively during this pre-designation period. On Nov 14, news reports confirmed that Datuk Lim of Ho Wah Genting had emerged as a substantial shareholder. Despite this announcement, the designation status on the stock was not removed.

The designation on Nov 12 pulled the share price down by RM5.40 or 24 percent to RM17. The volume traded had dropped to only 10 percent or 59 lots as compared with the previous trading days. The stock continued to drift down to as low as RM16.50 over the next few trading days. On Friday Nov 23 however, when the Second Board index fell 2 percent, Paragon bucked the trend and rose RM1.70 to close at RM18.20, the highest gainer on the Second Board. It took only a volume of 41 lots to achieved that feat.

The Verdict

Does the policy of designating counters actually work? All these episodes point to common conclusions.

Designation only sends the share price down temporarily. Designation does not seem to affect the longer upward trend of the share price.

Designation increases the volatility of the share price. Designation introduces a downward adjustment period but the share price rebounds upwards eventually, leading to larger price ranges. The thin liquidity and the wider bid-ask spreads also increases the volatility of the stock price.

Designation reduces the liquidity of the share substantially. Designation reduces the volume traded to less than 20 percent in the post-designation period as compared with the pre-designation period. The thin volumes actually facilitates manipulation.

Based on the above conclusions, it is hard to defend the policy of designation as being particularly effective in protecting investors interest. The gyrations that follow from an announcement, the increase in volatility, and the sharp fall in liquidity, all adds to hurt investors.

The price movements also suggest that the rule does little to prevent further price rises, curb speculation or manipulation. On the contrary, the sharp fall in liquidity after designation actually makes manipulation easier as a smaller amount of buying can move the price upwards by a wider margin. Designation has ended up facilitating rather than discouraging the manipulation of a stock price by dropping a larger fraction of small investors from the marketplace as compared with the bigger players, as the bigger players would have the margin facilities available to pay upfront upon purchase.

Arbitrary Selection Process

There does not seem to be a hard and fast rule that the KLSE adopts in deciding why Super Enterprise, Sarawak Concrete, and Paragon should be designated, and why Transwater, PWE, MCSB or Repco should not be. The prices on these latter stocks have risen just as aggresively over the last few months, with Transwater going from a low of RM7 to a high of RM107, and PWE from a low of RM14 to a high of RM140 in 1996. Any designation criteria, if there is indeed one, would seem to include these stocks. As a result of the discretionary power given to the KLSE and the arbitrariness in its selection process, designation has introduced more uncertainty than stability to the market.

Hands-off

Sometimes the best policy is none at all. In attempting to help minority interests, the KLSE's policy of designation may have caused more damage than good. In trying to reduce volatility and curb manipulation, designation appeared to have increased volatility and made manipulation even easier. We clearly do not understand the complex market forces well enough to pretend that introducing certain rules will improve market conditions. In such instances, a hands-off policy may be the best rule to follow.

Dr Chua Hak Bin is General Manager at a KLSE-listed company. The opinions expressed are solely his own. This article was also published in Malaysian Business, December 16 1996.

The article can be found at the following linkDesignation

Why you use this stocbroker to trade?

lilyginger — Fri, 30 Sep 2011 14:38:48 +0800

This is just on the surface factor about why we choose a broker but if anyone have a better idea how to improve the selection, please feel free to add!

Vote for the Malaysia market sentiment!

lilyginger — Wed, 07 Sep 2011 20:42:14 +0800

The ratings;

Will improve to a better condition - there would be a lot of volume and the market would be active.

Slight improvement - At least can see the market moving better than current situation but still boring.

Becoming more worst than current situation - it is so quiet that even a bat of an eyelid will be heard.

Same as per current condition - better spend the time watching EPL than watching the market.

Which internet share trading load the fastest?

lilyginger — Tue, 06 Sep 2011 19:51:37 +0800

Based on the general knowledge, there is only 2 companies which is N2N and Excel Force providing the online trading platform to stockbrokers in Malaysia. The client that attached to each of the companies are listed as per the following.

To participate in this poll, anyone just need to know the stockbroker providing them the internet share trading falls under which list.

N2N Connect List of Client

AmSecurities
JF Apex
CIMB Investment Bank
Hwang DBS
Kenanga Investment Bank
PM Securities
SJ Securities
Affin Trade
TA Securities

Excel Force List of Client

AA Anthony
Alliance Investment Bank
ECM Libra
Hong Leong e-Broking
Innosabah
Maybank
Melaka Securities
MIMB
Public Investment Bank

Current stock market condition

lilyginger — Mon, 05 Sep 2011 13:37:40 +0800

Anyone who played the share everyday would know the market already like someone with chronic disease, not willing to die but have loss all hope to live! In a polite word, its called lackluster.

So I am asking all investor, any idea how to make the stockmarket to gain its momentum again or it will just be like this until the fated time? What do you suggest that the stock market need to improve in order to make the stockmarket gain its momentum?

Only the people who truly play the game would know the rule of the game!

Soft Rule on Trading?

lilyginger — Sun, 19 Jun 2011 10:22:28 +0800

Some of this incident happened to some of my friend trading in the market;

1-One of my buddy who always trade in those counter less than RM1.00 told me a story that happened to him last time, he was buying 7000 shares of this counter but he would like to do it over one whole day with different level of price at each 100 shares, so he placed orders with his remisier like he bought 100 shares each time up to 50 times which is 50 x 100 shares = 5000 shares and the rest of the shares is bought at one go, 2000 shares in one order.

So when he did this, Bursa send a query to his remisier saying that my buddy is trying to control the price of the share, so his remisier have to ask him to stop doing that. But actually he was just trying to get the best averaging price.

On that day the counter overall volume in the market was like 50 million shares and my buddy trade was just 7000 shares, so my buddy just accept the remisier instruction. Whats everyone take on this?

2-I heard fromsome of the people in the market, they told me they do some intraday shortselling. I thought it was banned in Malaysia but they told me the online trading system and also the system used by the remisier which I don't know what is that, does not restrict intraday shortselling.

Since its illegal, I feel its best we don't do it but then some people are doing it. Anyone have any experience?

3-One of my relatives used to have a margin account with an Investment Bank. He used to accumulate a lot of shares in a single counter because he was a huge follower of the Technical Analysis and research that he done on a particular counter. Since he accumulate so much of the share, so he think why let the share being idle inside his CDS account.

So he pledged all of the shares into his margin account to get more limit and purchase further of the same counter.Suddenly his broker advised him that the Bursa don't like this kind of shares pledging and buying more shares of the same counter.

My relative is stunned as he opened with the Investment Bank as the rate is cheap and he sees nothing wrong with this as his trading pattern does not disturb anyone.

Have anyone had the same experience?

Trading in foreign share market

lilyginger — Sun, 05 Jun 2011 10:58:08 +0800

Beside's trading on stock in Bursa Malaysia, there have been a lot of investor who trade in foreign stock exchange i.e Singapore, US, Hong Kong and Japan. Some Malaysia stock broker offered offered trading platform which allow investor to key in through the internet to trade in foreign stock exchange. Whats the criteria for an investor to choose when trading in foreign exchange?

a)The foreign stock broker offering similar to Malaysia stock broker such as maybe 50% cash upfront instead of asking for 100% cash upfront?
b)The availability of online trading platform or maybe ask their remisier to key in for them?
c)The settlement available in RM and also foreign currency?
d)Would the investor prefered to open an account with the foreign stock broker direct or must go through Malaysia stock broker?

How much does the investor in Malaysia trust the foreign stockbroker to settle any purchase direct with them?

This is one of the many question on share trading in foreign exchange.

Trading Limit

lilyginger — Mon, 23 May 2011 09:47:27 +0800

I am looking for the best deal in trading limit given by stockbroker.

For example, if I deposited RM10K whats the best multiplier a stockbroker can offer me for my RM10K. If a stock broker can offer me 10 to 15 times multiplier, that would be good.

For example, for a RM10K cash as collateral, I get RM100K in trading limit.