business

Boosting small and medium cap liquidity

KUALA LUMPUR: Government-linked investment companies (GLICs) are to allocate up to RM3 billion for investment in small and medium public-listed entities on Bursa Malaysia to boost liquidity and investors’ interest, says Second Finance Minister Datuk Seri Johari Abdul Ghani.

“The equity and capital markets are an important conduit to the broader economy. We want all participants in the stock market to receive deserving investors’ interest because the small and medium enterprises are integral to Malaysia’s economy,” he told some 200 fund managers, brokers, remisiers, research analysts and media practitioners at the launch of Mid & Small Cap Research Scheme, here, yesterday.

Securities Commission chairman Tan Sri Ranjit Ajit Singh, Bursa Malaysia chairman Tan Sri Amirsham A. Aziz, Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan, Retirement Fund Inc (KWAP) chief executive officer Datuk Wan Kamaruzaman Wan Ahmad, Malaysian Investment Banking Association stockbroking committee chairman Lok Eng Hong and Association of Stockbroking Companies Malaysia chairman Rashid Ismail were also present.

The seven GLICs are the Minister of Finance Inc, Permodalan Nasional Bhd, Khazanah Nasional Bhd , the Employees Provident Fund, Lembaga Tabung Angkatan Tentera, Lembaga Tabung Haji and KWAP .

Bursa Malaysia, as administrator of Mid & Small Cap Research Scheme, has been tasked to promote small and medium public-listed entities via roadshows to investors and traders.

Amirsham said the Capital Market Development Fund would pay 22 research houses to analyse 100 small and medium listed companies for three years to spur capital market liquidity.

He also said two new indices have been unveiled, namely the FTSE Bursa Malaysia MidS Cap Index and FTSE Bursa Malaysia MidS Cap Shariah Index.

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