Wednesday, July 1, 2009

New Economic Policy (NEP) By Prime Minister ?

Well we can see that overall share market look exhausted. In the morning the KL Composite Index move so nice with some of the speculation counters look bigger potential to move higher and all the sudden the share market lost the momentum.

At the moment, I'm still looking on how the KL Composite Index going to perform. After last week major sell off and 5 days of rebound, finally the share market take a pause and went down with some profit taking activities. Can we consider whether this profit taking is a correction or just because of half yearly report closing ?

Many investors or the punters are waiting for a major announcement by our Prime Minister Datuk Seri Najib Tun Razak after he launching the Invest Malaysia week. Yesterday Datuk Seri Najib Razak announced that the government has dropped the 30 per cent Bumiputera equity requirement for Malaysian firms seeking public listing, the cornerstone of the New Economic Policy (NEP), but they will have to offer 50 per cent of the public shareholding spread to Bumiputera investors.

Will it be good for some of the companies seeking for listing at Bursa Malaysia ? Or this is just a gimmick of the new Najib's policy 1 MALAYSIA ? What ever it is, I think this is quite a good news especially to the Malaysia equities market but the current share market movement is still uncertain with the volume still stay low to support the market to move up.

It will be advisable to take a better clue from the Dow Jones Industrial Average before any decision can be make as the DJIA is still searching for a clearer picture whether they are going to move up or move down ?

Please refer HERE for further announcement by our Malaysia Prime Minsiter Datuk Seri Najib Razak.

1 comment:

alexlee said...

Swine Flu is not over yet, now come new " Dog Flu ".. Will these Flus affect stocks market??