TheStar
PETALING JAYA: Fund managers are maintaining their current investment strategies as they seek more details on the workings of the proposed Bursa Malaysia unified board.
A fund manager told StarBiz: “Although the listing requirements of the unified board have been lowered to that of the current second board (in terms of profit track record), we still need the details and time to analyse before deciding on an investment strategy.
“We need more details on how the unified board will work for more established companies with strong track records.”
The Securities Commission, in a statement yesterday, said the main and second boards would be merged into a unified board for companies with an established profit track record where the qualifying criteria for listing would be based on that for the second board currently.
Most fund managers said it was still too premature to tell whether having a unified board would be favourable for the investing public and institutions although it would become easier to make initial public offerings.
“I think most fund managers, especially foreign ones, do not go for quantity but quality stocks.
“If the proposed framework is to raise the standard or the quality, and control the listing of ‘doubtful’ businesses (cut down on the number of small and illiquid companies), then it's a good move.
“But then again, more details are needed before they'll jump into the market,” another fund manager said.
He also said the decision to invest would also depend on a particular fund's mandate, i.e. whether it invests in small-cap stocks or blue chips.
“Most funds will not be affected as the fund managers choose a stock based on its market capitalisation and not the board on which it is listed,'' he added.
The fund manager said Bursa was “not as popular as other exchanges now and it is more important to attract more players, especially foreigners, to Malaysia.
“In this regard, any measures to boost liquidity and quality will certainly help to promote the Malaysian stock market.
“A 'flip-flop policy' is not welcome.”
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