Boosting liquidity will take time

PETALING JAYA: The plan to improve the local stock market’s scale and liquidity will not see immediate results as the Government’s process of selling down its stakes in government-linked companies (GLCs) and attracting foreign investors to pick up local stocks will take time, according to fund managers and analysts.

“Market liquidity can basically come in two forms – through retail investors, which tends to be more speculative in nature, and through institutional investors that invest in blue-chip stocks. The latter option is more suitable in creating a sustainable market,” Fortress Capital Asset Management Sdn Bhd chief executive officer Thomas Yong told StarBiz.