Malaysia Stock Markets
Malaysia is among the thriving emerging economies in the world with a corresponding vibrant platform for the success of the stock market. No doubt that the stock market there has been hailed as a success model for many years and has therefore become the obvious choice for most investment destinations.
This notwithstanding the market conspicuously lacks continues academic studies on the manner in which asset prices are developed and managed in the local equity markets. One of the objectives of this work is to look at variables that reflect the multi and cross-sectional distinctions in average stock returns. It specifically lays emphasis on a five leading companies on the stock market within the framework of their performance after the end of the Asian financial crisis of the 1990s.
In this study, it is evident that while the beta component of measuring the market risk is most often not priced, an enormous presence of a negative relationship appears between the risk of the companies listed and on the one hand and the expected returns on the other hand.
In addition most investors both within both the domestic and international scenes are motivating to make premium payments in support of relatively liquid and dividend-paying stocks. These investors are also willing to favorably look at the local A-shares more granted they are backed by offshore counterparts to cater for international participants. By this, it is understood that a Malaysian company with specific emphasis on those used in this essay, that has a number of foreign shareholders is comparatively lower in terms of its capital cost all things being equal.
Not all, it is also established that the relative size of the company coupled with the book-to-market ratio have a significant bearing on stock returns; especially under the conditions of lapses in the market performance, stocks are reasonably priced in Malaysia.
The Kuala Lumpur Stock Exchange has a history that dates back to the 1930s with the objective of trading in securities in the Malaya area. The name Bursar Malaysia Berhad was adopted in 2004 to replace the former. It primarily operates the Kuala Lumpur Composite Index, meanwhile since 2006 it has added a number of index series.
With the advent of the Malayan Stock Exchange in the 1960s, the conventional Board system immediately became accepted as the main means of carrying out business on the floor. Under the Board system two main rooms for trading located in Kuala Lumpur and Singapore were connected by telephone cables with all stocks and prices bearing uniform prices.
The political process that ushered in the withdrawal of Singapore from Malaysia resulted in the Malayan Stock Exchange dividing to represent the individual markets. The separation did not stop domestic corporations from both sides to be listed and traded on the Stock Exchange of Singapore (SES) and the Stock Exchange of Malaysia (SEM).
Processing your request, Please wait....
