THE Government's decision not to list Petroliam Nasional Bhd and Felda on Bursa Malaysia is not necessarily a blow to the stock exchange's plan to become a specialised exchange for resource-based companies, analysts said.
This is because there are already other resource-based companies that are listed that could be developed into much bigger entities, they said.
And there is also the possibility of new resource-based listings on Bursa, albeit not as big.
Petronas is Malaysia's biggest oil and gas (O&G) company while Felda is among the bigger plantations companies in terms of land bank.
"No doubt, the two are among the biggest companies, but not listing them does not necessarily affect Bursa's plan as there are quite a number of other resource-based companies that can be developed for a listing," said an analyst from AmResearch.
On top of that, more could be done to help the existing listed companies grow, she said, citing O&G player KNM Group as an example.
The company started out small upon listing, but today, it has a market capitalisation of about RM1 billion, making it among the bigger companies in that category.
As it stands, there are already two other units of Petronas listed on Bursa - gas distributor Petronas Gas Bhd and petrol retailer Petronas Dagangan Bhd.
Bursa itself does not think that the Government's decision would affect its ambition.
"It will not affect us because currently we already have resource-based companies that are trading with us," its chief executive officer Yusli Mohamed Yusoff told Business Times.
The Government had announced in March this year, plans to position Bursa as a specialised exchange for resource-based firms.
However, on Wednesday, Prime Minister Datuk Seri Abdullah Ahmad Badawi poured cold water on speculation that the Government might list Petronas and Felda on Bursa.
"Petronas alone would add at least RM400 billion ringgit to the market capitalisation of Bursa Malaysia and overnight transform it into one of the biggest stock exchanges in Asia," the prime minister said at the Umno annual assembly.
"But we will not forfeit strategic national interests solely for short-term gain," he said, adding that attracting investment and developing the stock market was not as simple as "preparing instant noodles".
Chris Eng, an analyst at OSK Research, said it would certainly be a boost for Bursa if the two companies were listed, but "it won't kill their plans either" if it doesn't happen, given that there are other resource-based firms to focus on.
Business Times
And there is also the possibility of new resource-based listings on Bursa, albeit not as big.
Petronas is Malaysia's biggest oil and gas (O&G) company while Felda is among the bigger plantations companies in terms of land bank.
"No doubt, the two are among the biggest companies, but not listing them does not necessarily affect Bursa's plan as there are quite a number of other resource-based companies that can be developed for a listing," said an analyst from AmResearch.
On top of that, more could be done to help the existing listed companies grow, she said, citing O&G player KNM Group as an example.
The company started out small upon listing, but today, it has a market capitalisation of about RM1 billion, making it among the bigger companies in that category.
As it stands, there are already two other units of Petronas listed on Bursa - gas distributor Petronas Gas Bhd and petrol retailer Petronas Dagangan Bhd.
Bursa itself does not think that the Government's decision would affect its ambition.
"It will not affect us because currently we already have resource-based companies that are trading with us," its chief executive officer Yusli Mohamed Yusoff told Business Times.
The Government had announced in March this year, plans to position Bursa as a specialised exchange for resource-based firms.
However, on Wednesday, Prime Minister Datuk Seri Abdullah Ahmad Badawi poured cold water on speculation that the Government might list Petronas and Felda on Bursa.
"Petronas alone would add at least RM400 billion ringgit to the market capitalisation of Bursa Malaysia and overnight transform it into one of the biggest stock exchanges in Asia," the prime minister said at the Umno annual assembly.
"But we will not forfeit strategic national interests solely for short-term gain," he said, adding that attracting investment and developing the stock market was not as simple as "preparing instant noodles".
Chris Eng, an analyst at OSK Research, said it would certainly be a boost for Bursa if the two companies were listed, but "it won't kill their plans either" if it doesn't happen, given that there are other resource-based firms to focus on.
Business Times
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