WE can expect our equity market to rise a bit in the next few months. This is because the Government will have more money to push up Index linked stocks, with the launch of the Amanah Saham 1 Malaysia or AS 1 Malaysia.
This fund is going to have a size of 10 billion ringgits, more than the money injected into valuecap earlier.
But stock performance in the long run depends on the actual balance sheets which will depend on how the economy is doing. I believe the worst is over but the world is not out of the woods yet.
In the meantime, there will be high volatility in the world markets, which will have effects on our own equity market.
Even in the launch of this funds, there is a quota set: 50% for bumi, 30%, 15 %and 5 % for the CHinese, Indians and other races respectively.
It is ironical that quotas are set for this fund. From the quota set , we can have a glimpse of what 1 Malaysia is really like.
I would have thought it would be right for the PM to do away with quota for this fund, since this is called AS 1 Malaysia.
Why set a quota for this fund? I do not see the rationale for doing so, except for the fact in the minds of these leaders who decide on this fund, Malaysia is a country with quotas and so quotas must be set, even if this is the 1 Malaysia fund.
This sort of mindset should have been done away with if the government is serious about 1 Malaysia.