Ng Kee Seng
BUKIT MERTAJAM (March 2, 2007): DAP secretary-general Lim Guan Eng says the prime minister should reprimand Bursa Malaysia CEO Datuk Yusli Mohamed Yusoff and demand an apology for his insensitive remarks that steep losses of RM80 billion in market capitalisation of the bourse the past three days is a "healthy correction" for the market.
"For Yusli to say the drop in market capitalisation is a Ôhealthy correction' is irresponsible and scant cold comfort to retail investors who has suffered RM80 billion paper losses following the drop in Kuala Lumpur Composite Index (KLCI) of 92 points over the last three days.
"What does Yusli mean by 'healthy correction'? Does he mean that the KLCI is too high at 1,280 points, which directly contradicts (prime minister Datuk Seri) Abdullah (Ahmad Badawi)'s previous assertion that the KLCI should breach 1,350 points? If so then Yusli should indicate what is the lower healthy level for KLCI?"
Lim said Abdullah must bear full responsibility for stockmarket investors who lost money after entering the market on the fourth day of Chinese New Year following his advice that the KLCI might breach 1,350 points.
"With the first indication in history by a Malaysian prime minister that the KLCI might breach 1,350 points, Abdullah's comments on Chinese New Year kicked off a buying frenzy on Feb 21 with the KLCI rising by 16 points to 1,278 points on a total volume of 4.7 billion shares. 4.8 billion shares were traded the following day and 3.2 billion shares on Feb 23.
"Normally trading during Chinese New Year is slow but with volume of 12.8 billion shares on the first three days of trading of Chinese New Year showed the significant impact of Abdullah's comments," he added.
Lim said the prime minister would lose all credibility and may even face legal suits from investors claiming losses from the premier if the KLCI did not hit 1,350 points.
"Many investors tell me that they would not have entered the stock market on the fourth day of Chinese New Year were it not for the prime minister's stock tip which appears to guarantee quick profits," said Lim at the opening of the Bukit Mertajam DAP office today. sun2surf