Behaviour and Performance of New Issues in Malaysia

Othman Yong

Abstract


This study looks at the behaviour and performance of new issues in Malaysia from 1983 to 1988. The results show that the average return, based on the difference between the first day closing price and the offer price , is approximately 167 percent. It is also found that the new issues are overwhelmingly oversubscribed. The returns after the first day and up to one year normally decline, eventhough they are not significantly different from the returns received on the first day of trading. Furthermore, the performance of new issues is quite independent of the ups and downs of the market.

ABSTRAK

Kajian ini melihat kepada gelagat dan prestasi saham-saham terbitan baru di Malaysia dari tahun 1983 hingga 1988. Keputusan menunjukkan bahawa purata pulangan, berdasarkan perbezaan antara harga penutup hari pertama dan harga tawaran, ialah kira-kira 167 peratus. Juga didapati bahawa terbitan baru adalah sangat terlebih langganan. Pulangan selepas hari pertama sehingga setahun selalunya menurun, walaupun ia tidak menunjukkan perbezaan yang ketara berbanding pulangan hari pertama urusniaga. Tambahan lagi, prestasi terbitan baru adalah agak bebas daripada pergerakan turun-naik pasaran. 


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