Call on Finance Ministry to release a list of its "fundamental value" of
all the stocks on the Kuala Lumpur stock exchange as a public guide for the
oversight of the transparency and integrity of the RM10 billion Valuecap
operation
Media Statement
by Lim Kit Siang
(Petaling Jaya,
Friday):
The Prime Minister, Datuk Seri Dr. Mahathir Mohamad alleged in Kota Bharu on
Wednesday that there were parties which purportedly wanted to push down the
current value of the shares in the Kuala Lumpur Stock Exchange (KLSE). This
became a justification for the establishment of the RM10 billion asset
management company Valuecap Sdn. Bhd to use public funds to prop up the
stock market
Mahathir's allegation gave Malaysians the feeling of déjà vu all over again,
that all economic and financial woes of the country, including the listless
performance of the KLSE, were the handiwork of evil conspirators both inside
and outside the country and no fault of the government.
DAP calls on Mahathir to identify the parties who purposely wanted to push
down the current value of the shares by selling the shares on a major scale,
as with the control and records with the Securities Commission, this should
not be a difficult thing to do.
The "master-mind" of the Valuecap operation, the Economic Adviser to the
Prime Minister, Tan Sri Nor Mohamed Yakcop, said in today's New Strait Times
that Valuecap will not be used to prop up the stock market beyond its
fundamental value nor bail out distressed government-linked companies.
A day before the Valuecap debut in the Kuala Lumpur stock exchange last
Friday, the government investment arm Khazanah Nasional Bhd (one of the
three entities which equally owned Valuecap) bought RM400 million of new
stock of Renong Bhd to keep it afloat after failing to find other buyers.
Renong was also the stock which benefited most right from the beginning of
the Valuecap operation last Friday, raising the question as to how Nor
Mohamed could say that Valuecap is not in the business, directly or
indirectly, of bailing out distressed government-linked companies.
Nor Mohamed said Valuecap's objective was to buy shares that have
fundamental values but were underpriced.
If so, the Finance Ministry should make public a list of its "fundamental
value" of all the stocks on the Kuala Lumpur stock exchange not only as a
public guide but as the first minimal criteria for public oversight of the
transparency and integrity of the RM10 billion Valuecap operation.
(17/1/2003)
*
Lim Kit Siang, DAP National
Chairman
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http://dapmalaysia.org