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Article: Has stock market volatility in the Kuala Lumpur Stock Exchange returned to pre-Asian financial crisis levels?
- Article from:
- ASEAN Economic Bulletin
- Article date:
- August 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 Institute of Southeast Asian Studies (ISEAS). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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I. Introduction
The 1997-98 East Asian financial and currency turmoil rocked Malaysia's equity markets severely. During that period, stock market volatility in the Kuala Lumpur Stock Exchange (KLSE) increased substantially, and investors' confidence was badly shaken. This was reflected in a sharp decline in the key benchmark Kuala Lumpur Composite Index (KLCI). This high volatility in the stock market received a great deal of attention from market participants, including investors, brokers, dealers, and regulators. Participants care about stock market volatility, not just because it is perceived as a measure of risk, but because they worry about "excessive" ...