Bursa chief: Know the company you are investing in
KUALA LUMPUR: Investors should make it a point to understand better the companies they put their money into in uncertain times like this, says a top Bursa Malaysia Bhd official.
"Opportunities are aplenty around us, be it in a bear or bull market. There's no crystal ball (to predict how our investments will do in times like this) but risk is something that can be managed if our decisions are well-supported by a sound understanding of the companies that we put our money into," chief executive officer Datuk Tajuddin Atan (below) said at the launch of the OSK Investment Challenge (Oskic) here yesterday.
"Will the macro situation impact the earnings of the company? Does the company have its fundamental in place to see it through tough times? These are questions that one needs to ask," he added.
A faltering US economy and debt concerns in the eurozone have weighed on the local bourse in recent weeks, sending the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index down by 10.4 per cent so far this year.
Still, all markets in the region are down for the year, and the local bourse has slipped the least after that of Indonesia (-7.6 per cent) and the Philippines (-8.8 per cent).
The FBM KLCI eased 6.14 points to 1,361.38 yesterday, and analysts think the index will face further selling pres-sure ahead.
"Sell on rallies and keep a large cash pile for now," said Maybank Investment Bank's head of retail research, Lee Cheng Hooi. "We foresee an eventual mid-term move to lower levels like 1,292, 1,280, 1,276, 1,249, 1,210 and 1,149."
The Oskic is a virtual investing competition which allows college and university students a chance to invest in a simulated stock market using virtual money.
The aim of the competition is to educate students on the workings of the capital market.
To date, more than 18,000 students from over 100 local colleges and universities have registered for the competition.
"Opportunities are aplenty around us, be it in a bear or bull market. There's no crystal ball (to predict how our investments will do in times like this) but risk is something that can be managed if our decisions are well-supported by a sound understanding of the companies that we put our money into," chief executive officer Datuk Tajuddin Atan (below) said at the launch of the OSK Investment Challenge (Oskic) here yesterday.
A faltering US economy and debt concerns in the eurozone have weighed on the local bourse in recent weeks, sending the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index down by 10.4 per cent so far this year.
Still, all markets in the region are down for the year, and the local bourse has slipped the least after that of Indonesia (-7.6 per cent) and the Philippines (-8.8 per cent).
The FBM KLCI eased 6.14 points to 1,361.38 yesterday, and analysts think the index will face further selling pres-sure ahead.
"Sell on rallies and keep a large cash pile for now," said Maybank Investment Bank's head of retail research, Lee Cheng Hooi. "We foresee an eventual mid-term move to lower levels like 1,292, 1,280, 1,276, 1,249, 1,210 and 1,149."
The Oskic is a virtual investing competition which allows college and university students a chance to invest in a simulated stock market using virtual money.
The aim of the competition is to educate students on the workings of the capital market.
To date, more than 18,000 students from over 100 local colleges and universities have registered for the competition.
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