Malaysia’s benchmark index retreated as profit-taking in key heavyweights weighed on sentiment, while overall market activity remained active. Summary FBM KLCI fell 0.83% to 1,684.93 , dragged by losses in banking and selected large-cap names, despite steady trading participation. Market Performance FBM KLCI : 1,684.93 (-0.83%) FBM Mid 70: -0.00% (flat) FBM Small Cap: -0.23% FBM ACE: +0.20% Broad market was mixed , with weakness concentrated in large caps. Market Breadth & Trading Activity Total volume: 3.54 billion shares Total value: RM4.19 billion Gainers: 456 Losers: 678 Unchanged: 550 Market breadth turned negative , reflecting cautious sentiment. Top Movers – KLCI Gainers Axiata (6888.MY) +1.54% Petronas Gas (6033.MY) +1.18% Sunway (5211.MY) +1.15% Losers Hong Leong Bank (5819.MY) -3.29% Maybank (1155.MY) -3.02% CIMB (1023.MY) -2.47% Banking sector weakness was the main ...
During most of the studies related to investment, some risks will be mentioned such as credit risks, liquidity risks, and many more.
Here is one new term that I learned throughout this week though...the "reputational risk".
If you have not heard of it, this will be important because reputational risk is a hidden danger that can hurt and pose a threat of survival to even the biggest and best-run companies. The problem with reputational risk is that it could erupt out of nowhere without much sign to investors. It is difficult to quantify the risk as well but it is important.
Reputational risk can also arise from the actions of errant employees, such as the massive trading losses disclosed by some of the world's biggest financial institutions from time to time. In an increasingly globalized environment, reputational risk can arise even in a peripheral region. There are a few ways for investors to look at when considering reputational risk.
Look at how the company mitigate the damage by taking prompt damage control measures via instant communication and social media networks. With the current availability of instant communication in this modern age, companies must ensure prompt action is taken as the risk can be insidious and could last for several years.
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