On April 2, the KLSE restricted trading in Super Enterprise, requiring among other things that purchasers pay for the shares immediately. Takeover rumors are keeping the momentum going. But only three takeover proposals have actually been made so far, of which one has been approved. The Securities Commission tightened takeover rules in 1993 and 1994, limiting approvals only to rescues of ailing companies, privatizations and deals considered in the national interest. Malaysia's remisier system is also seen as contributing to the frenzy.
Stock brokerages have networks of associates called remisiers who focus on retail investors.
While they are credited with helping educate Malaysians in stock investing, these dealers are also said to encourage their clients to constantly buy and sell shares since they are paid solely on commission. Remisiers deny pushing short-term trading, but they are among the beneficiaries of the Second Board boom. If you don't have the facts, you speculate. And the current market rampage is good for trading. The authorities have found no evidence of one.