KUALA LUMPUR, May 31 — Permodalan Nasional Bhd (PNB) should exercise caution when purchasing stocks in a declining Bursa Malaysia, PAS said today.
PAS’ economic and entrepreneur development committee’s deputy chairman Mazli Noor was responding to PNB group chairman Tan Sri Abdul Wahid Omar’s remarks that a declining stock market signalled a buying opportunity.
Mazli said the decision to invest in today’s stock market should be made after strategic evaluation and not for the purpose of bailing out troubled companies.
“We are worried that in its (PNB) bid to grab opportunities in the current stock market, it could appear to be an act of bailout for some large companies, especially firms that are affected by current sentiments,” he said in a statement.
Mazli, therefore, urged PNB to decide buying signals based on studies and proper evaluations without any elements of bailing out large-scale firms.
Yesterday, Wahid said the volatility of the stock market was a signal to fund managers, including PNB, to plan a long-term investment strategy.
The FBM KLCI yesterday closed at 1,719.28 after dropping by 56.56 points.
