Don't turn KL bourse into casino: Anwar

Don't turn KL bourse into casino: Anwar

KUALA LUMPUR (AFP): Malaysian Deputy Prime Minister Anwar Ibrahim yesterday cautioned investors against turning Kuala Lumpur's bourse into a "casino" as the stock market suffered a downward drift.

Anwar, who is also finance minister, told market players to stop being greedy, to avoid speculation and instead to base their investments on the companies' fundamentals and its long-term returns.

Investors should understand the fundamentals and the "education process of a stock market (rather) than going in for short term gains," Anwar was quoted as saying by the official Bernama news agency.

"... those who entered the stock market should have staying power and discipline so that they would not be easily taken in," he added.

While admitting that the stock market had been depressed lately by the central bank's credit curbs on shares and luxury properties, Anwar said the guidelines were misunderstood by the public.

"The move was to enable the government to manage the economy over the long term and is not aimed to hinder new development projects," he stressed.

This is the second time Anwar has publicly reassured investors over the central Bank Negara's credit curbs, introduced on April 1 to avert an asset inflation bubble, but which depressed the local bourse.

The key composite index on the Kuala Lumpur Stock Exchange fell 1.4 percent Thursday and continued its downfall Friday.

Despite Bank Negara's move to clarify the measures on Tuesday, analysts said the credit curbs had somewhat highlighted the weakness of Malaysia's economy, causing investors to remain wary.

They said market sentiment was also dampened by the overnight fall on Wall Street and there was lack of fresh leads to spur the market.