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The exchange, launched in October 1997 with hopes of being Malaysia's answer to Nasdaq, boasts a solitary listing. Why?
THE OFFICIALS prefer not to say so, but Mesdaq has always been regarded as
Malaysia's answer to Nasdaq. And why not? After all, any stock exchange
that professes to specialise in growth companies, particularly technology
businesses, cannot escape the comparison. Even the names sound alike.
Abdullah Abdul Hamid, president of Mesdaq (Malaysian Exchange of
Securities Dealing and Automated Quotation) is quick to point out the
disparities. `We have just started. It's a different market here, with
different conditions. Yes, there are the aspiration and intention (to
emulate Nasdaq), but how we go about it will be tailored to the local
situation.'
Under different circumstances, it would have been flattering to be
likened to the United States' Nasdaq (National Association of Securities
Dealers Automated Quotation). The recent jitters notwithstanding, its
spectacular valuations of Internet stocks have done plenty to herald the
arrival of the new economy.
Naturally, the local investing and entrepreneurial communities have
harboured hopes that Mesdaq would copy Nasdaq's dot.com magic. In the
period leading to Mesdaq's launch in October 1997, the anticipation and
excitement were palpable.
Soon after the launch, exchange officials said the plan was to have up
to six companies listed within the first year. A sunnier prediction
floated the possibility of 100 Mesdaq counters within a few years. What
actually happened was nothing - or something close to that.
Wire and cable maker Supercomal Technologies Bhd stepped up to be the
first Mesdaq tenant in April last year. Since then, it has been in
solitude. Trading in its shares has been lethargic. The average daily
volume is just slightly more than 9,000 shares, worth about RM30,000. By
next month, two companies - pharmaceutical manufacturer Kotra Industries
Bhd and software developer and consultants Intelligent Edge Technologies
Bhd - are finally expected to provide Supercomal with some company.
Still, there is no sign of a dot.com stampede to list on Mesdaq, and
this is fast becoming a sticking point. All the detractors have to do is
contrast Supercomal's Lone Ranger act with the performances of Hong Kong's
Growth Enterprise Market (GEM) and Japan's Market of the High- Growth and
Emerging Stocks (Mothers)....