THE local stock market has had a great run thus far this month, though one thing lacking is vibrancy in the marketplace.
High-beta stocks faded away in the hazy-filled month, while blue chips surged, sometimes erratically without much notice.
On June 15, some big-capitalised stocks came out to party, with Nestle (Malaysia) Bhd leading the way.
Nestle was up RM2.20 to RM57.40, Carlsberg Bhd rose RM1.68 to RM12.98, while Pharmaniaga Bhd added RM1.51 to RM6.50.
Others like Tradewinds Corp Bhd rose 33 sen to RM9.30, while IJM Land Bhd was up 31 sen to RM2.38.
There were even stocks going up more than 10 bids in less than 120 seconds on that day.
With this type of action, only an insane person would say that the market lacks vibrancy.
Hold on a minute! These are blue chips, stocks that are held and played by big funds, and this month, they have been really vibrant.
On the other side of town, though, vibrancy seems to be a dying word. Vibrancy in high-beta stocks was noticeably lacking.
In Malaysia, high-beta stocks are mostly penny stocks. Penny stocks are those that trade below RM1.
Hypothetically speaking, had these penny stocks traded as actively and erratically as some of the blue chips had on June 15, would they have made the headlines in business pages? Or would they have been queried by the market requlators?
The need for an orderly market is understood by all, and so is the need for a fair and equal market for all players.
To cut a long story short, what works for the goose must also work for the gander.
If that were to happen, one could expect a lot of excitement in our market, not only at the top, but also from the bottom.
On that note, I can’t wait for next few weeks’ trade, also perhaps some friendly side bets on the Euro 2012.
Everybody has their favourites, though the Euro Cup could prove to be a poison chalice.
The last two winners, Greece and Spain, are today in an economic tailspin. With Portugal’s economic troubles well documented, equity market players are pointing to Italy as the next great economy that will have its head on the chopping block after Spain.
So don’t be surprised if on July 2, the Azzurri are crowned the champions of Europe.