Tips for Bursa Malaysia Investor
Besides opening a Central Depository System (CDS) account, there are a few steps an investor is recommended to go through before buying a stock from the exchange.
1) Stock Screening and Stock Evaluation
There are thousands of stocks list in Bursa Malaysia. How to know which stock to pick for further study? In Malaysia there is one place name “Bursa Marketplace” (http://www.bursamarketplace.com/) which helps investors to screen the stocks before download the annual report from Bursa Malaysia webpage (http://www.bursamalaysia.com/market/) for further fundamental analysis.
Bursa Marketplace allows investors to screen the stocks listed in Bursa Malaysia by industry, share price, market capitalisation, analyst recommendation, price / earnings (P/E), price / book value (P/BV), dividend yield, 5 years dividend growth, 5 years earnings per share (EPS) growth and etc. Bursa Marketplace even allow investors to screen stocks with alpha factor rating (momentum, valuation, growth, efficiency and quality).
Once selected a stock, Bursa Marketplace give a brief introduction of the company and the board member. Most importance, Bursa Marketplace provides key valuation ratio to investor, such as P/E, P/BV, dividend yield, current ratio, debt to capital ratio, total debt to total asset ratio, return on equity (ROE), return on asset (ROA) and etc. Besides that, Bursa Market also summarizes the 5 years / 5 Quarter income statement, balance sheet and cash flow statement of the company.
Stock Screening from Bursa Marketplace
2) Historical Price and Technical Analysis
Now after selected a good company from Bursa Marketplace such as: positive earning, positive cash flow from operating, current ratio > 1, positive ROE and etc). Let’s look into historical prices and dividend pay-out. Big Charts (http://bigcharts.marketwatch.com) is able to provide such information to the investors. By just insert MY:follow by the quoted (eg, MY:PBBANK) investors are allowed to see the historical price of the selected stock and volume. Besides that, it also provided information when is the past dividend pay-out date, stock split and earning report.
Big Chart allows investors to select the timeframe (eg, hourly, daily, monthly, quarterly, yearly and etc). Big Chart also provides some technical analysis tools for technical investosr such as moving average convergence divergence (MACD), relative strength index (RSI) and etc.
Historical Price from BigCharts
3) Dividend History
Now how much dividend did the company pay over the years. These can be found from Malaysiastock.biz (http://www.malaysiastock.biz/). Malaysia Stock.biz summarizes the dividend pay and bonus and right issued by the company over the past 7 years.
Historical Dividend from Malaysiastock.biz
4) Moving Average & Standard Deviation (Risk)
How risky is the company? One of the methods to calculated risk is look at how large the standard deviation of the stock price compare to the moving average. Large standard deviation means the stock price can deviate far from the moving average which indicated large uncertainty (risk). Investor.com (http://klse.i3investor.com/servlets/stk/ta/1295.jsp) is providing the simple moving average, exponential moving average and their respective variance for 10 days, 20 days, 30 days, 40 days, up to 250 days. The numbers of days use depend what type of investor are you, day trader or long term investor. The longer numbers the days used the better the estimation.
By knowing the variance, standard deviation can be found by square root the variance
Moving Average & Variance from Investor.com
These are the four webpages I visited before make any investments in Bursa Malaysia.
Hope these article is useful for your guys and become a successfully investor in Malaysia.
Your valuable feedback is very much appreciated
© 2015 EC Tay