Sunday, May 22, 2005

Market sell down

In the past three weeks there was a sell down of shares in Bursa Malaysia. Four stocks, in total, lost about RM2.0 billion of their market capitalization. There was a very interesting article on how the saga unfolded in The Edge, Malaysia. It listed down 10 companies with steep falls in their share prices since last October 2004.

On the recent melt down, it seems it was the credit providers, i.e. bankers and stockbrokers, who got hit the most. The market...more appropriately the bankers and the stockbrokers lost RM2.0 billion. Who made the gain?

These are the four companies
1. Foremost Holdings Bhd
2. Golden Plus Holdings Bhd
3. Seal Inc Bhd
4. Fountain View Developmnent Bhd (lost RM1.7 billion of its share value: RM4.80 on 27 April 2005 and 57 sen on 5 May 2005)

These are the rest
5. Fajar Baru Capital Bhd
6. Sanbumi Holdings Bhd
7. Suremax Group Bhd
8. Mahajaya Bhd
9. Lii Hen Industries Bhd
10. Liqua Health Corp Bhd

I believe there will be more counters joining the list above triggered by the credit crunches from the stockbrokers and bankers in coming weeks. Therefore THE question is: which counter's next?

The burning questions are
1. What is the common characteristics of these stocks reflected in their financial and corporate information?
2. What other stocks with such characteristics have not had their prices plunge yet? In short, who's next?