The retail investors are back


  • Business
  • Saturday, 11 Oct 2003

THE powerful gains on the KLSE in recent days, coupled with a surge in oil, gas and water stocks, have lured back packs of retailers to the trading floor. DANNY YAP and HONG BOON HOW yesterday visited some brokerages and found many happy punters there. 

M. Selvaratnam, 57, pensioner 

 

MY friends and I are very happy as we have made good money from the share market and we foresee that the market will to be more exciting next week. 

Siva Muhundan

I have been dabbling in the share market for more than 20 years and cannot deny the fact that there were times that I made and times that I lost money. 

You must be prepared to accept your losses, and it is useless to be gloomy. See the next day as an opportunity to recover your losses. 

 

Mohd Daud Barnin, 45, businessman 

 

I feel that the next run will be on palm oil-related counters as the prices of palm oil are good and plantation companies are making good profits. 

We must be careful when dabbling in stocks. I always look at a company's fundamentals and record before buying its shares. 

I also feel that the smooth transition of power from Prime Minister Datuk Seri Dr Mahathir Mohamad to his deputy, coupled with foreign funds re-entering the country, will make our stock market more lively compared with the first half of the year. 

 

M. Murugan, 58,  

former boiler technician 

 

Seng Sooi Seng

You must monitor stock prices from trading galleries, as this will enable you to obtain the latest market news and respond to price changes. 

It is very difficult to monitor from a computer at home because you will not be able to exchange share market gossip with your friends. 

Besides, my regular kakis are here almost every day and so I will not feel bored. If the session is dull, we will go for a tea break and return later. As such, you can say that trading galleries are second homes for pensioners and retired people.  

We must thank Dr Mahathir who had nursed our economy back to health after the financial crisis hit the country in 1997. 

If we had borrowed money from the International Monetary Fund, our economy will not have recovered that fast. 

 

Muhamad Sarfen

Siva Muhundan, 42,  

company secretary  

 

It's time to get into the action as there are opportunities to make some money in the stock market.  

I read a lot on investment and although I have a remisier, I make my own decision to buy or sell stocks. So far it has paid off. I sometimes ask my accountant friend as I value his opinion. It's important to know when to buy and when to sell. Never be greedy; if you make some money, you should be happy.  

Currently I have about RM50,000 in the stock market and feel it's a good time to enter the market. I will invest more money since the foreign investors are coming in a big way. 

We are only small retail players, so we have to follow the big players. 

 

Seng Sooi Heng, 63, pensioner and former finance manager 

 

I foresee the finance and property stocks going up because these two sectors would probably gain substantially if the market maintains its momentum since the banking and finance sector would be the first to benefit from funds coming in and some good property stocks are currently undervalued. 

The decision by global rating agency Standard and Poor's (S&P) to upgrade Malaysia’s long-term foreign currency rating from BBB-plus to A-minus to reflect a better-than-expected fiscal performance and the smooth transition of leadership also helped improve and retain foreign investors' confidence in the local stock market. 

The retail investors are slowly coming back but many are afraid, due to their previous experience in the stock market crash in 1997/98 and are more cautious.  

There are also many good cheap stocks with potential upswing in value.  

 

Mohamad Sarfen, 53, businessman 

 

The market is active and appears to be very bullish. It's a good time for retail investors like me to sell some of the non-performing stocks I bought before the crash in 1997/98. 

I'm happy the foreign investors are beginning to take interest in the stock market as it will strengthen the market. 

I've been “playing” the stock market for many years since the early 1990s and have learnt not to be too optimistic and to play within my means. 

I just hope the market continues on the uptrend. 

 

A 76 year-old Chinese pensioner 

 

Making money from the stock market is 80% luck and you cannot rely too much on recommendations from remisiers. Believe me, I have been a day-trader for more than 39 years. 

Anyway, you will be able to get more people to invest in the stock market if companies are willing to pay dividends that are higher than the prevailing fixed deposit rates. 

I usually buy a large amount of shares and wait patiently for the price to reach my target before selling. 

Our stock market can be better off if the government strictly enforces compliance with corporate governance and transparency. 

Company directors who mislead the public into buying their shares, while they secretly sell their's should be jailed. 

 

A 60 year-old Chinese pensioner 

 

I am only a small time player and prefer to invest mainly in blue chip companies, which are more stable. 

Besides, I prefer to subscribe to initial public offering shares, where profits are more certain.  

Although the value of speculative stocks can go up fast, I prefer to invest in something more stable that allows me to sleep better at night. 

 

For latest KLSE indices and other information click here

 

CI tests critical 800 mark as market surge continues 

The retail investors are back 

All eyes on contractors 

Delay in the award of projects unsettles some players 

Some main players in the construction industry

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