Don’t blame others. Bursa committed seppaku when it introduced the RM40.00 irresponsible standard brokerage share in a market that hardly saw much retailing activity. In its bid to save the remisiers, it put on this condition.
However, the remisiers were undone by IT trading and most went back to square one.
Again by trading using a one sen price interval revision, the market became almost comatose. There was little to look forward too. Big players came in once a while to harvest arbitrage differences.
True, the mutual funds did mop up some of these retail payers but in the end, their investments came to naught in spite of such strongly worded terms like ‘capital protected’. It was misrepresentation through and through!
It’s no point bringing up statistics. Retailers were shut out of the market because of your silly RM40.00 brokerage. That should explain why the percentage of retail players slumped from 52% pre 1997 to only 20% these days. The current play is the work of local institutional players and when they get their funds at the beginning of a month, the get into the market marginally pushing up the index momentarily. The state-controlled Employees Provident Fund accounts for 50 per cent of daily trading. After that it will move from side to side like a disused sampan.
As for the index, this is not the same one as before. You have changed the goal posts all too often.
The slump in trading by individuals on the Bursa also coincided with an exodus by foreigners from Southeast Asia. Overseas investors have sold a net RM1.36 billion of Malaysia’s equities this year alone, adding to RM8.57 billion withdrawn in 2009 and RM38.6 billion ringgit that flowed out in 2008.
It's all your fault!
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