KUALA LUMPUR: The local stock market is undervalued based on historical trading price-to-earnings ratio and dividend yield of the market, says CIMB Bhd group chief executive Datuk Nazir Razak.
Nazir was commenting on a news report that the local bourse was considered one of the poor performing markets in the world in 2005.
The benchmark KL Composite Index ended the year at 899.79 points, down 0.84% against end-2004.
Nazir said after a signing ceremony yesterday between the investment bank and Squash Racket Association of Malaysia (SRAM) and Nicol David that intra-day trading would be a positive move to improve liquidity in the market.
“The level of liquidity in the local market is very, very low. There are various initiatives that the authorities are contemplating. They are talking about introducing intra-day trading,” he said.
Citing an example, he said, CIMB-GK in Singapore earned quite a lot of revenue in intra-day trading as “it helps the liquidity of the stock market.” – Bernama