Sunday, May 11, 2008

PN4 and PN17 Listed in Malaysia Share Market(KLSE)

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. The funs can use it for investing into another counter.

PN4 and PN17 companies in Malaysia shares market waste a lot of capital resources. For example: -

A company which can not presented the annual account for financial year ended. Authority has been given the date to suspend or dis-listing. If the company appeal for it, the authority always allow them and 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(7000) and another one is can not presented the annual account.(Megan)

Authority never stop the media and analyst discussed the above 2 company, Hence, 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 BURSA investment data with them could found something related for unusual trading. 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


Unknown said...

hello stockname, I am quite new to investment in stock market. I just read articles that you blogged, titled "After a while",一个股市投机者的故事, and "PN4 and PN17 Listed in Malaysia Share Market(KLSE)", which kind of makes much sense to me. Can I know your opinion on bina goodyear, which has just announced PN17 status recently. looking through their financial statements, it is apparent that they are making loss for quite some years recently with decreasing earning per share every year and at bearing high cost of sale year after year, causing very low ratio gross profit/ revenue at the very beginning at the Income statement before even proceeding to other parts of financial statements (as shown in their financial reports), and now it is troubled with the non-billable work-in-progress issue, and is in the stage of planning to pay their creditors off their net book value. But its current price seems to be quite attracting to buy in and sell high in the future time. (despite the fact that they are making losses).It it ok to buy in? And given the time to regularise their financial conditions, will they survive the troubles at hand and reverse the situation around or that they might face the destiny of being delisted from the stock exchange? Thanks in advance for your valuable opinion.

stockname said...


Sorry to hear that you are interested on Bina Good year... As you know the company gooing to de-listing from KLSE. Sometime the company going such situation mainly because of management did not care about the internal problem. So, finally the serious become worst then no more alternative solution. Seem like MAS, national air plane. Who care it continues registered loss then thinking pump funds by government. then no efficient as well as effectiveness must apply into company.