Stock Market Seminar. Faizal Yusup

Transcription

1 Stock Market Seminar Faizal Yusup

2 The Securities Commission established under the Securities Commission Act 1993 ( Commission ) reserve all proprietary rights to the contents of this Presentation. No part of this Presentation may be used or reproduced in any form without the Commission s prior written permission. This Presentation is provided for information purposes only. Neither the Commission nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation. It is your responsibility to verify any information before using or relying on it.

3 The Speaker Faizal Yusup is a licensed Remisier under Kenanga Investment Bank Berhad. Many recognizes him by his nickname, FY. He is an avid investment blogger and acknowledged by many for his skills and experience in the stock market. Begins his career as an institutional dealer under Morgan Grenfell in 1996 at Kenanga Investment Bank Berhad before converting to become a remisier in He possess a Diploma in Investment Analysis from UiTM Shah Alam and a BSc Finance from the University of Nebraska Lincoln, USA. He stated financial and investment knowledge is very important and is also a pillar that strengthen his profession as a Remisier at Kenanga Investment Bank Bhd. Apart of being the main speaker in Super Investors Seminar organized by Advance Forward Training and Consultants he is also invited as a guest speaker for MITI, PRIBUMI and even the Securities Commission. Finally, he is currently the Vice President of the Association of Bumiputera Malaysia Remisier. (PRIBUMI)

4 Introduction

5 if you had purchased 1,000 PUBLIC BANK shares since 1967 and have held it over a period of 42 years, your initial investment would have grown to a value of RM2.1 MILLION today!

6 Warren Buffett often visited his father's stockbrokerage company as a child. At 11 years old he made his first investment; he bought three shares of Cities Service Preferred at $38 per share. The stock quickly dropped to only $27, but Buffett held on tenaciously until they reached $40. He sold his shares at a small profit, but regretted the decision when Cities Service shot up to nearly $200 a share. He later cited this experience as an early lesson in patience in investing.

7 Reasons NOT to invest? Stock market is for the RICH No capital/ money/ savings to invest High RISK Fear and phobias with stock markets Fear of LOSS Not interested Too hard and difficult to UNDERSTAND

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9 Risk & Return How much are you willing to pay me to LOSS (RISK) WIN (RETURN) SKYDIVE OPTIONS, FUTURES, CURRENCY MOUNTAIN CLIMBING SHARE, JUNK BONDS SCUBA DIVING CAPITAL TRUST, BLUE CHIPS, BONDS ROLLER BLADE GOVERNMENT BONDS, COUPONS SLEEP BANK ACCOUNT, FIXED DEPOSITS

10 Highlights RICHEST man in Malaysia (2015) ROBERT KUOK RM38.66 billion Wilmar International TAN SRI DATO LIM KOK THAY RM21.85 billion Genting Berhad ANANDA KRISHNAN RM37.98 billion Usaha Tegas TAN SRI QUEK LENG CHAN RM21.61 billion Hong Leong Group

11 Highlights RICHEST man in Malaysia (2015) TAN SRI DATO DR. TEH HONG PIOW RM18.82 billion Public Bank Group TAN SRI SYED MOKHTAR AL- BUKHARY RM10.42 billion MMC, DRBHICOM Group TAN SRI DATO LEE SHIN CHENG RM14.45 billion IOI Corporation Berhad TAN SRI DATO SERI DR. YEOH TIONG LAY RM9.07 billion YTL Corporation

12 STOCK MARKET PRIMARY MARKET SECONDARY MARKET Initial Public Offer Share application through the Ministry (MITI) Investment funds channelled directly to the company as their business capital For companies that has been listed in Bursa Malaysia The sale and purchase and payment of shares between investors through brokers without the involvement of the listed company

13 Initial Public Offer / IPO

14 ABC Company (Through Bank Loans) Bank Lending Company Growing Bank Pay back the loans with interest

15 ABC Company (Share Issue) Invest Investors Stock Company Growing Dividend

16 Benefits: Listed on the stock markets Unlocking Values Increasing Capital Obtaining funds with lower cost Coverage by brokerage companies, print media and electronic media A place to transact shares of the company Shares can be pledged as loan collateral Employee share option scheme purposes - ESOS

17 Listing Requirement: Bursa Malaysia Aspect Main Market ACE market a) Profit Test Uninterrupted profit after tax ( PAT ) of 3-5 full financial years ( FY ), with aggregate of at least RM20 million; and PAT of at least RM6 million for the most recent full FY b) Market Capitalisation Test c) Infrastructure Project Corporation test A total market capitalization of at least RM500 million upon listing; and Incorporated and generated operating revenue for at least 1 full FY prior to submission Must have the right to build and operate an infrastructure project in or outside Malaysia:- with project costs of not less than RM500 million; IPO price Minimum RM0.50 each No minimum No minimum operating track record or profit requirement - Public Spread At least 25% of the Company's share capital; and Minimum of 1,000 public shareholders holding not less than 100 shares each At least 25% of the Company's share capital; and Minimum of 200 public shareholders holding not less than 100 shares each

18 Bursa Malaysia: Stock Savings

19 BURSA MALAYSIA BHD MAIN BOARD ACE MARKET Listing of companies with good financial track record and good profitability Replacing the MESDAQ market in 2009 For a newly formed company without track record

20 Bursa Malaysia Index I. Benchmark for measuring the performance of the overall market II. Calculated using market capitalization weighed market III. Main Index ; - FBM KCLI Index - FBM TOP 100 Index - FBM Gold Index - FBM Small Cap Index/FBM Small Cap Syariah Index - FBM Hijrah Syariah Index - Business Sectors Index New Revolution in Self Improvement

21 BURSA MALAYSIA PRODUCTS ORDINARY SHARES EXCHANGE TRADED FUND FKLI & FCPO REAL ESTATE INVESTMENT TRUST (REITS)

22 BURSA MALAYSIA PRODUCTS COMPANY WARRANTS EXCHANGE TRADED FUND LOAN STOCK

23 Starting a Stock Portfolio

24 Method: To start a Portfolio Choose from any of the 33 stockbrocking companies throughout Malaysia. Use the service dealer or paid remisier dealer stock. Open an account. Ensure authorized dealer registered with the Securities Commission website: (licensing division)

25 Opening a stock account For the citizens of Malaysia: 1. Copy of identity card 2. RM10.00 to open a CDS account (Central Depository System) with MCD (Malaysian Central Depository Sdn Bhd) 3. Open a trading account with a broker / remisier account 4. A copy of the front page of book bank account for the purpose of E Dividends. Extras: 1. You can also open an accounting for conducting transactions over the internet or even global markets. 2. You can also open a margin account.

26 Opening An Online Account: Introduction to ONLINE TRADING

27 Bursa Settlement T Transaction day. T+1 Contract states number of shares, prices, brokerage charges and amount to be paid will be mailed to you. T+3 Contract due and payment must be made on or before this date T+4 Force Selling Day. If the contract is not paid, the share will be sold by company dealer

28 CONCEPT Of Stock Investing Intentions not to play but to invest in shares Good Stock Selection As a long-term owner grow together with the company Rights as shareholders Investing not only about getting a return at the end of the year but knowing how revenue is generated Creating an entrepreneurial spirit

29 Introduction to PRIMARY MARKET

30 Shari ah Status Companies listed in Bursa Malaysia are classified as non complaint securities if the company s core activities are not permissible as per the following criteria: Financial services based on interest Gambling and betting Manufacture or sale of non-halal products or related products Conventional insurance Entertainment activities that are not permissible Manufacture or sale of tobacco-based products or related products Stock-broking or non-complaint securities Other activities deemed non-permissible

31 INITIAL PUBLIC OFFER (IPO) Directors And Employees Of Company Financial And Investment Institutions Public Investor

32 Introduction to IPO at MITI

33 MITI Stock: Allocation Bumiputera Provision of Special Shares is allocated to qualified Bumiputera investors. Investors who are eligible and selected by MITI. MITI s IPO offer should be paid based on the offer price of the shares.

34 Listing in Bursa Malaysia

35 IPO Debut As (at )

36 Unequal length of the fingers Fair Value upon listing RM5.30 to RM6.00 FGV Current Fair Value RM3.33

37 Introduction to SECONDARY MARKET

38 CLASS OF SHARES BLUE CHIPS SHARES INCOME STOCKS GROWTH STOCKS Companies with a strong financial position and stable track record. Eg; MAYBANK, NESTLE Companies that pay high dividends and consistently every year. Eg; MAXIS, PUBLIC BANK Companies with higher revenue growth rate in excess of the market average. Eg: Dayang, Sapura Kencana

39 CLASS OF SHARES (cont.) CYLICAL SHARE DEFENSIVE SHARE SPECULATIVE SHARE The company s performance depends on the economic cycle. If the company is growing, profit will also grow and vice versa. Eg: automotive, consumer product Companies with low business risk and can survive even in the company downturn. Eg: YTL Power & Puncak Niaga High-risk stocks usually due to the price movements are not necessarily correct. Eg; oil exploration company, penny stocks.

40 Stock Market Participants

41 Are you an INVESTOR or a TRADER?

42 Investors Mistakes Investing without knowledge No investment planning Hoping for an unreasonable profit Investing based on tips No discipline invest in accordance to emotion Weak financial and risk management Over-trading

43 15 Stock Selections and 1 Stock Timing Tips

44 Stock Selection Tip

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47 Check the facts of history from 5 to 10 years before, wheather the profit are consistent or not? If not, leave the stock as there are more than 1000 stocks to choose from

48 Check the facts of history and research on the highest and lowest price earnings (Price Earnings) ever achieved by the company. If you find it at the highest levels then stay away from these companies

49 Make a comparison of companies from the same industry

50 Stock Selection Tip Check if the stock has liquidity and velocity

52 Are there any rumours about the stock? Tip : Buy on Rumours, Sell on News (Facts) Stock Selection Tip

53 Stock Selection Tip Is there any Direct Business Transaction done by the Fund Manager?

54 Growth Stocks Income Stocks

55 Stock Selection Tip Is the stock recommended by Research Houses?

56 Stock Selection Tip Is the stock related to the Example: GLC, Water, Palm Oil, O&G, Rubber, Wood, Blue Chips, 2nd Liner, Penny Stock, etc.

57 Stock Selection Tip Newspaper Website and Blog politemarket.blogspot.com/ malaysiafinance.blogspot.com/ nexttrade.blogspot.com/

58 Stock Selection Tip Bloomberg Newly Developed Software Murasaki Homily Capital Via Fiavest etc.

59 Stock Timing Tip Do a technical research through charts to see what is the best price to enter or exit.

60 SUMMARY AND WRAP-UP