Via The Star, S&P (Standard and Poor's) will start researching Bursa Malaysia companies next month. This should be a very positive move to add depth and breadth to a lacklustre market but there are still a couple of issues.
1. Governance. There's many an example of companies posting earnings and then retracting them with only an apology and no real enforcement from the SC.
2. Large number of good, quality companies. There just arent that many good quality companies listed on Bursa Malaysia. This adds to a lack of volume. Everyone (unit trusts, public investors, institutions) are already all shareholders in this small number of companies.
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