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Why are young people shunning Bursa?

Malaysian finance/business 20 Responses »

Jan 162010

While the the spate of attacks on religious sites is cause for concern, Bursa Malaysia has more worldly worries.

Few young adults are investing in the Kuala Lumpur stock market. A survey has revealed that only 12 per cent of investors are in the 20-29 age group, while 59 per cent involve those 40 years and above.

Some have cited possible reasons: the high risk factor involved in investing in the stock market; young people preferring to spend their money on property, cars and movies; a lack of education about how to invest, etc.

I have my own theories.

A question on public shareholding spreads

Malaysian finance/business 15 Responses »

Nov 132009

While trying to find out who Low Taek Jo is in UBG Bhd (group advisor/non-executive director, as it turns out), I was puzzled by what I also came across.

According to Bursa Malaysia’s main market listing requirements, Chapter 3 on Admissions, Rule 3.06(1) and Chapter 8 on Continuing Listing Obligations, Rule 8.02(1,4):

3.06 Shareholding spread
(1) An applicant must have at least 25% of the total number of shares for which listing is sought in the hands of a minimum number of 1,000 public shareholders holding not less than 100 shares each.

Updated

PART B –CONTINUING LISTING CRITERIA
8.02 Compliance with shareholding spread requirement
(1) A listed issuer must ensure that at least 25% of its total listed shares (excluding treasury shares) are in the hands of public shareholders. The Exchange may accept a percentage lower than 25% of the total number of listed shares (excluding treasury shares) if it is satisfied that such lower percentage is sufficient for a liquid market in such shares.

(4) A listed issuer which fails to maintain the required shareholding spread referred to in subparagraph (1) above may request for an extension of time to rectify the situation in the manner as may be prescribed by the Exchange.