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29 April 2017

VOICE OF MSWG

On 26 April 2017, the Securities Commission announced and released its 3rd Malaysian Code on Corporate Governance (MCCG). The 1st was issued in 2009 and the 2nd was in 2012. This 3rd CG Code seeks to further internalise and align the Malaysian Capital Market with global best practices and thereby increases the visibility and appeal of our listed companies internationally.

Already a large number of our companies, especially the top 100, have “internalised” a high standard of CG culture in their organisations. With the adoption and adherence to the changes contained in this new code, the protection of the wider definition of stakeholders (environment and community, besides shareholders) is further enhanced. MSWG appreciates and welcomes these changes.

CAPITAL MARKET AND REGULATORY UPDATE

SC MALAYSIA TO ALLOW REGULATED SHORT SELLING OF CORPORATE BONDS TO BOOST BOND MARKET LIQUIDITY

Securities Commission Malaysia (SC) has brought into effect a new guideline to allow the regulated short selling of corporate bonds in the Malaysian capital market.

17 April 2017

VOICE OF MSWG

Capital Market Update

The recent surge in retail interest in the local bourse while exciting, was probably driven by spill over interest from interest in large-cap stocks and expectations for an improved earnings performances in 2017.

Foreign investor interest has also helped boost sentiment, with reports indicating that nine (9) straight weeks of foreign buying for a year-to-date total of RM6.4 billion already amounts to more than twice the total amount of outflows (of RM3.01 billion) in all of 2016.

However, it is important for minority shareholders to continue taking heed of fundamentals instead of being lured by fast, easy gains in smaller, second-and third-liner stocks, where some have recently even chalked up limit-up performances.

Capital flows have always been transient and while large foreign funds are able to absorb short-term volatility, small investors, by and large, cannot -- hence the constant need for informed and nuanced investing.

Turning to a different topic, as the peak period of AGMs approaches, it may be pertinent to highlight the following: