PN 4 and PN 17
In Malaysia’s shares market, it consist of company has been classified as PN4 and PN17. Some has been suspended and some still can active trading in the market. Why we have double system?
While if referring the develop market. It is impossible and very rare you can found this type of bad company because they have follow one rule and one regulation only. If they found that problem company, immediately those counter will be suspended for trading until full investigation report presented.
I personally support every mature capital market should have one rule only to watch out the performance of the company. It should stop any speculation. It stop waste the funds and accumulated it invest into another counter.
PN4 and PN17 companies in Malaysia shares market waste a lot of capital resources. For example: -
A company who can not presented the annual account for financial year ended and authority has been given the date to suspend or dis-listing. But if the company appeal for it and the authority not choice must postpone the date for disqualify. These procedures indirectly encourage speculation trading in this period.
Based on the above circumstances, if authority enforce the guide rule said that whichever company against any act, it should be immediately suspend until the issue concluded. It may bring more fair and transparency.
Recently, the 2 company in Malaysia market brings a lot of investors lose the money. First case is preparing the false annual report and another one is can not presented the annual account.
The Malaysia media today highlighted this company still good but tomorrow reporting the case maybe very bad. Furthermore analyst also preparing the individual report to identify the “good buy” and “good sell” price. The uncertain issue already spoilt the fairness of trading.
As an authority, if they random checking one or two analyst has write a report regarding the problem company. I believed the investment profile with them could found something related. If authority enforce a rule suspend immediately, I believed it automatic ban this unfair treatment.
As a small investor, we always wish authority provide a fair investment ground for everyone. Every investor gains more and rich indirect help our country gain more. We should provide a better investment field, it also help ignoring external financial crisis heavily impact on our capital market. World market become unreasonable bullish in this 5 years. It financial crisis may anytime reach us. More preparing in advance to across the crisis is a priority job. More prepare in cleaning the rubbish is essential job and we must do it in any second and anytime. Good investment field is creating by authority and given a good example to the world. We should set a good example, presenting it to world investor. Malaysia market does not have any rubbish.
“Watch out and Careful.” I am share with every good investor.
Thank you
Write on 17 July 2007
