Saturday, May 05, 2007

Bursa's Appeal Not Affected

My Dearest Moo Moo Cow,

Published on the Business Times,
CEO: Bursa's appeal not affected by privatisation

  • Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said the recent privatisation trend "is a signal of the market's maturity and robustness".

    "We do not envisage the privatisation of certain listed companies critically affecting the status of Bursa Malaysia in terms of its appeal as the bourse does offer an attractive platform for listing.

    "Our fundamentals remain strong and stable; attention from local and foreign investors continue to be high; and the over 1,000 listed companies on the exchange have a natural home-ground advantage as investors are already familiar with them," Yusli said in an e-mail reply to Business Times yesterday.

Here is a simple question.

Out of the so-called 1,000 listed companies, how many are truly investment grade stocks?

And if more and more so-called quality stocks start to embark on such privatization exercises, how many quality stocks will remain?

And when that does happen, I wonder what will the market attract?

And do the investors or the minority shareholders matter in the stock market?

Let me put it this way, if the minority shareholders continues to be abused in the share market, one fine day, there will exist no more minority shareholders!

Think of it, in a hot market, minority shareholders probably matters not but wait till the time turns bad, then the market will truly remember the folly of these minority shareholders, them folks who HOLDS the shares, even during the bad times. So imagine if there are no minority shareholders, who then HOLDS the shares during the bad times?

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