http://en.wikipedia.

org/wiki/Bursa_Malaysia

Bursa Malaysia
From Wikipedia, the free encyclopedia

Jump to: navigation, search

Bursa Malaysia
Type Public (KLSE:[1])
Founded 1964
10th Floor, Exchange Square, Bukit
Headquarters
Kewangan, 50200 Kuala Lumpur, Malaysia.
Dato' Yusli Mohamed Yusoff, CEO
Key people Tun Mohamed Dzaiddin Haji Abdullah,
Chairman
Industry News and Publishing
Website www.bursamalaysia.com
The Bursa Malaysia (MYX: 1818) or Malaysia Exchange, MYX previously known
as Kuala Lumpur Stock Exchange (KLSE, Bursa Saham Kuala Lumpur in
Malay) dates back to 1930 when the Singapore Stockbrokers' Association was set up
as a formal organisation dealing in securities in Malaya. In 1937 it was re-registered
as the Malayan Stockbrokers' Association, but it still did not trade public shares.
By 1960s, the Malayan Stock Exchange was formed and public trading of shares
began on 9 May. In 1961, the Board system was introduced whereby two trading
rooms, one each in Singapore and Kuala Lumpur, were linked by direct telephone
lines into a single market with the same stocks and shares listed at a single set of
prices on both boards.
The Stock Exchange of Malaysia was officially formed in 1964 and in the following
year, with the secession of Singapore from Malaysia, the common stock exchange
continued to function under the name Stock Exchange of Malaysia and Singapore
(SEMS).
In 1973, with the termination of currency interchangeability between Malaysia and
Singapore, the SEMS was separated into The Kuala Lumpur Stock Exchange Bhd
(KLSEB) and The Stock Exchange of Singapore (SES). Malaysian companies
continued to be listed on SES and vice-versa. A new company limited by guarantee,
The Kuala Lumpur Stock Exchange (KLSE) took over operations of KLSEB as the
stock exchange. In 1994, it was re-named Kuala Lumpur Stock Exchange.
Kuala Lumpur Stock Exchange became a demutualised exchange and was re-named
Bursa Malaysia in 2004. It consists of a Main Board, a Second Board and MESDAQ
with total market capitalization of MYR700 billion (US$189 billion).
In 2005, Bursa Malaysia was listed at its own exchange on 18 March. On 18 April,
Bursa Malaysia introduced CBRS, a scheme which allows all investors to access
research reports of Bursa-listed companies free-of-charge.
The main index for Bursa Malaysia is Kuala Lumpur Composite Index (KLCI).
However, in June 2006, a new index series jointly developed by Bursa Malaysia and
FTSE Group was introduced which is FTSE Bursa Malaysia Index.
On November 7, 2006, the index finally passed the 1,000 mark hurdle and closed at
1,003.28. It was partly boosted by the strong overnight close in the Wall Street.
As of 8 February 2010, the Malaysia Exchange had 956 listed companies with a
combined market capitalization of $325 billion.[2]
Contents
[hide]

 1 History
 2 Events
 3 Largest Stocks by Market Value
 4 Palm oil futures
 5 See also
 6 References
 7 External links

[edit] History
This article's tone or style may not be appropriate for Wikipedia. Specific
concerns may be found on the talk page. See Wikipedia's guide to writing better
articles for suggestions. (December 2007)
The first formal securities business organisation in Malaysia was the Singapore
Stockbrokers' Association, established in 1930[3]. It was re-registered as the Malayan
Stockbrokers' Association in 1937. The Malayan Stock Exchange was established in
1960 as the bourse for public trading of shares in Malaya. The board system with
trading rooms in Singapore and Kuala Lumpur, linked by direct telephone lines into a
single market with the same shares listed at a single set of prices on both boards, was
established in 1961.
By 1964, the Stock Exchange of Malaysia was established. With the secession of
Singapore from Malaysia in 1965, the Stock Exchange of Malaysia became known as
Stock Exchange of Malaysia and Singapore. In 1973, with the currency
interchangeability between Malaysia and Singapore ceased, the Stock Exchange of
Malaysia and Singapore was divided into KLSEB and SES. The Kuala Lumpur Stock
Exchange which was incorporated on December 14, 1976 as a company limited by
guarantee, took over the operations of KLSEB in the same year.
The Kuala Lumpur Stock Exchange Berhad was demutualized pursuant to the
Demutualization Act and converted into a public company limited by shares on
January 5, 2007. Upon the conversion, the organization vested and transferred the
securities exchange business to a new wholly-owned subsidiary, Bursa Securities, and
became an exchange holding company and were renamed Bursa Malaysia Berhad
on April 14, 2007.
From the legal perspective, the demutualization essentially entailed the conversion
from a not-for-profit "mutual" entity limited by the guarantee of its members into a
company limited by shares. However, from the business strategy perspective, the
demutualization, supported by business transformation initiatives, is intended to
further enhance its corporate, organizational and governance structures.
On 18 March 2005, Bursa Malaysia made its debut on the Main Board of Bursa
Malaysia Securities Berhad with a 17% or RM0.50 premium over its retail price of
RM3.00. top
On 6 July 2009, the Composite Index has been replaced by FTSE Bursa Malaysia
KLCI index which reflect the top 30 companies in the exchange.[4]
On 4 August 2009, the exchange has combine the main board and the second board
into a single market which is called the "Main Market". Mesdaq is also renamed into
ACE market which provide lower listing requirements.[5]

[edit] Events
On March 10, 2008, trading on the exchange was suspended for one hour due to
composite index fall by more than 10 percent or 130 points to 1166.32 points. This
was largely by combination of factors such as the United States Subprime mortgage
crisis and the political uncertainty caused by the 12th General Election. Dealers
expected the move was an overreaction to the election results and the market will
correct itself.[6] The index gained 2.1% the next day on the morning session as
investor reinvest in plantation stocks and blue chips.[7]
On July 3, 2008, trading on the exchange was suspended for the day when it suffered
multiple hardware glitches. The glitches only affected the equities market, not the
bonds and commodity market.[8] Trading resumed the next day.

[edit] Largest Stocks by Market Value

Source: Bloomberg, in billions of RM, Data updated on 30 November 2009

1. Sime Darby Berhad (MYX: 4197) - RM53.24

2. Malayan Banking (MYX: 1155) - RM47.21
3. CIMB Group (MYX: 1023) - RM44.71
4. Public Bank (MYX: 1295) - RM37.71
5. Tenaga Nasional Bhd (MYX: 5347) - RM36.49
6. IOI Corp Bhd (MYX: 1961) - RM33.62
7. MISC Bhd (MYX: 3816) - RM33.16
8. Genting Group (MYX: 3182) - RM26.82
9. Axiata Group Berhad (MYX: 6888) - RM24.74
10. Petronas Gas Bhd, a subsidiary of Petronas (MYX: 6033) - RM19.35
11. Perlis Plantations Bhd (MYX: 4065) - RM17.95
12. DiGi Telecommunication(MYX: 6947) - RM16.98
13. PLUS Expressway Berhad (MYX: 5052) - RM16.50
14. Genting Malaysia berhad (MYX: 4715) - RM16.24
15. Kuala Lumpur Kepong Berhad (MYX: 2445) - RM16.01
16. AMMB Holdings Bhd (MYX: 1015) - RM14.24
17. YTL Corporation Bhd (MYX: 4677) - RM13.83
18. YTL Power International Bhd(MYX: 6742) - RM12.84
19. British American Tobacco Malaysia Bhd (MYX: 4162) - RM12.83
20. Hong Leong Bank Bhd (MYX: 5819) - RM11.84
21. RHB Capital Bhd (MYX: 1066) - RM11.61
 22. Telekom Malaysia (MYX: 4863) - RM10.80
23. Petronas Dagangan Bhd, a subsidiary of Petronas (MYX: 5681) - RM8.84
24. Nestle (Malaysia) Berhad (MYX: 4707) - RM7.78
25. MMC Corporation Berhad (MYX: 2194) - RM7.61
26. UMW Holdings Bhd (MYX: 4588) - RM7.03
27. Hong Leong Financial group Bhd (MYX: 1082) - RM7.61
28. Astro All Asia Networks (MYX: 5076) - RM6.42
29. Gamuda Berhad (MYX: 5398) - RM6.35
30. IJM Corporation Berhad (MYX: 336) - RM6.34

[edit] Palm oil futures

Bursa Malaysia is the world's biggest palm oil futures trading hub since 1980. The
FCPO, the global price benchmark for the crude palm oil market, is a deliverable
contract which is traded electronically on Bursa Malaysia’s trading platform.[9]
Crude palm kernel futures and crude palm oil futures are primarily traded on Bursa
Malaysia in Malaysian Ringgit (MYR) and US dollar denominated contracts. Their
codenames are FPKO, FCPO and FUPO, respectively.
Below is a non-exhaustive list of commodities exchanges around the world where
palm oil futures is traded with different contract specifications:

 MDEX: Bursa Malaysia Derivatives Exchange

 DC: Dalian Commodity Exchange
 NCDEX: India's National Commodity and Derivatives Exchange

In August 2009, Bursa Malaysia launched Bursa Suq Al-Sila', the world's first
Internet commodities trading platform with crude palm oil (CPO) as its underlying
asset that is syariah-compliant.[10] Bursa Suq Al-Sila', formerly known as Commodity
Murabaha House, facilitates commodity-based Islamic financing and investment
transactions under the Syariah principles of Murabahah, Tawarruq and Musaw-
wamah. Under the Bursa Suq Al-Sila concept, the bank buys a commodity from a
supplier such as a CPO producer at a principal amount, and sells it to a customer at a
profit. The customer then sells back the commodity to the spot market for cash. This
initiative is spearheaded by the Malaysia International Islamic Finance Centre.
Among the plantation signatories are Boustead Estate Agency Bhd, Genting
Plantations Bhd, IOI Corp Bhd and Sime Darby Bhd. The financial institutions
include Gulf Cooperation Council (GCC) banks Al Rajhi Banking & Investment Corp
(M) Bhd, Asian Finance Bank Bhd, Kuwait Finance House (M) Bhd and Unicorn
International Islamic Bank Malaysia Bhd. Bursa Malaysia chief executive officer
Datuk Yusli Mohamed Yusoff said “This venture brings two of the nation’s main
global players; namely the Islamic banks and palm oil producers together, to further
enhance Malaysia's palm oil futures' visibility on the world stage.”
Bursa Malaysia and CME Group, in 2009, announced plans for crude palm oil futures
to be electronically traded on the CME Globex.[11] CME Group will develop a US
dollar-denominated, cash-settled contract using Bursa Malaysia settlements as its
reference, at its Globex electronic platform in Chicago.[12][13][14] CME Group will buy a
25% stake in Bursa Malaysia Derivatives for RM55.6 million to be satisfied in RM1.9
million cash and 76,427 shares of CME Group. To facilitate the proposed equity
participation, Bursa will consolidate all its derivatives businesses into Bursa Malaysia
Derivatives and its subsidiaries. Under the corporate exercise, Bursa Malaysia
Derivatives will acquire the entire issued and paid-up share capital of Bursa Malaysia
Derivatives Clearing Bhd from Bursa for a cash consideration of RM37.1 million. [15]
Operating round the clock, the CME Globex trading system is at the heart of CME.
Proposed in 1987, it was introduced in 1992 as the first global electronic trading
platform for futures contracts. This fully electronic trading system allows market
participants to trade from booths at the exchange or while sitting in a home or office
thousands of miles away. When Globex was first launched, it used Reuters'
technology and network. September 1998 saw the launch of the second generation of
Globex using a modified version of the NSC trading system, developed by Paris
Bourse for the MATIF (now Euronext). To connect to CME Globex, traders connect
via Market Data Protocol (MDP) and iLink 2.0 for order routing.
Jakarta Futures Exchange launched trading of physical crude palm oil (CPO)
contracts in June 2009. Indonesia’s Deputy Minister of Agriculture and Fisheries at
the Coordinating Ministry for the Economy, Bayu Krisnamurthi, had emphasised that
a physical market must be established before futures trading can begin.[16]
In October 2009, Indonesia plans to facilitate trading of crude palm oil and other raw
materials on the Indonesia Commodity & Derivatives Exchange (ICDX).[17] In spite of
being the world’s largest producer, Indonesia has been unable to set a palm oil
benchmark price, with trading centred in neighbouring Bursa Malaysia in Kuala
Lumpur.
The Jakarta Futures Exchange, which was launched in 2000, started by offering crude
palm oil and coffee futures but trading was “dormant” as operators have preferred to
trade the palm oil contracts in Malaysia and coffee futures in London and New York,
according to Edi Susmadi, a director of JFX. He attributed the failure to competition
from Bursa Malaysia, and the low tech trading system. Max Ramajaya at Wilmar
International, the world’s largest processor of palm oil, said: “When you trade on
MDEX [Bursa Malaysia] you have better access to information about the market and
more insight.
Back in June 2007, Singapore launched the Joint Asian Derivatives Exchange’s
(JADE) US dollar-denominated CPO futures contract.[18] JADE was a joint venture
between the Chicago Board of Trade (now CME Group) and the Singapore Exchange
(SGX). The aim was to provide a fair and transparent platform for price discovery in
CPO and allow traders to buy JADE CPO futures and CBOT soyabean oil futures
concurrently to manage their edible oils price risk.
However, the JADE CPO futures failed to sustain. CME Group, which acquired
CBOT and inherited its investment in JADE, sold its 50% stake to SGX in late 2007.
[19]
According to reports, both the rubber and CPO futures offered by JADE have
failed to attract volumes. JADE merged with the Singapore Commodity Exchange in
2008.[20]

[edit] See also

 Economy of Malaysia
 List of East Asian stock exchanges
 List of South Asian stock exchanges
 List of stock exchanges

[edit] References
 1. ^ http://www.bursamalaysia.com/website/bm/about_us/
2. ^ Number of Listed Companies and Total Market Cap, Malaysia Exchange
page on Wikinvest
3. ^ "Bursa Malaysia history".
http://www.klse.com.my/website/bm/about_us/the_organisation/history.html.
4. ^ "FTSE Bursa Malaysia KLCI". Bursa Malaysia.
http://www.klse.com.my/website/bm/market_information/fbm_klci.html.
5. ^ "ACE Market – easier to list". The Star. 2009-08-01.
http://biz.thestar.com.my/news/story.asp?
file=/2009/8/1/business/4429822&sec=business.
6. ^ "Trading on Bursa suspended". Business Times.
http://www.btimes.com.my/Current_News/BTIMES/Monday/Latest/2008031
0155236/Article/.
7. ^ Surin Murugiah. "KLCI best performer among regional indices at midday".
The Edge. http://www.theedgedaily.com/cms/content.jsp?
id=com.tms.cms.article.Article_9c3e82e0-cb73c03a-9db99200-678c2fc2.
8. ^ Cindy Yeap (2008-07-03). "Bursa Malaysia announce "surprise and rare"
trading halt". The Edge. http://www.theedgedaily.com/cms/content.jsp?
id=com.tms.cms.article.Article_e69a7de1-cb73c03a-c8c7d600-f86fa74d.
Retrieved 2008-07-03.
9. ^ Palm Oil Futures Trading in Malaysia
10. ^ Syariah commodities trading platform to be launchedThe Edge, 29 July
2009
11. ^ CME and Bursa Malaysia to launch palm oil contract Financial Times, 11
Aug 2009
12. ^ Bursa Malaysia, CME in palm oil futures deal Reuters, 11 Aug 2009
13. ^ CME Group to take stake in Bursa Malaysia derivatives unit Chicago
Tribune 11 Aug 2009
14. ^ CME to acquire 25% stake in Bursa’s derivatives business The Star, 17 Sep
2009
15. ^ CME to take 25% stake in Bursa's derivatives for RM55m The Edge
Malaysia, 17 Sep 2009
16. ^ Jakarta’s CPO contract not a threat The Edge Malaysia, 29 June 2009
17. ^ Jakarta plans palm oil exchange Financial Times, 6 Aug 2009
18. ^ Singapore's JADE to launch crude palm oil futures on June 6 Forbes, 3 May
2007
19. ^ Singapore Exchange buys CME's stake in JADE market Reuters, 9 Nov
2007
20. ^ JADE palm oil, rubber futures to shift to SGX Reuters, 7 Nov 2007

[edit] External links

 Bursa Malaysia official website

 KLSE history page
 History

 The first formal securities business organisation in Malaysia was the
Singapore Stockbrokers' Association, established in 1930. It was re-registered
as the Malayan Stockbrokers' Association in 1937. The Malayan Stock
Exchange was established in 1960 and the public trading of shares
commenced. The board system had trading rooms in Singapore and Kuala
Lumpur, linked by direct telephone lines.

In 1964, the Stock Exchange of Malaysia was established. With the secession
of Singapore from Malaysia in 1965, the Stock Exchange of Malaysia became
known as the Stock Exchange of Malaysia and Singapore. In 1973, currency
interchangeability between Malaysia and Singapore ceased, and the Stock
Exchange of Malaysia and Singapore was divided into the Kuala Lumpur
Stock Exchange Berhad and the Stock Exchange of Singapore. The Kuala
Lumpur Stock Exchange which was incorporated on December 14, 1976 as a
company limited by guarantee, took over the operations of the Kuala Lumpur
Stock Exchange Berhad in the same year.

 On April 14, 2004, we changed our name to Bursa Malaysia Berhad,

following our demutualization exercise, the purpose of which was to enhance
our competitive position and to respond to global trends in the exchange sector
by making us more customer-driven and market-oriented. We are focused on
various initiatives aimed at improving our product and service offerings,
increasing the liquidity and velocity of our markets, improving the efficiency
of our businesses and achieving economies of scale in our operations.

 On 18 March 2005, Bursa Malaysia was listed on the Main Board of Bursa
Malaysia Securities Berhad.

 We accomplished double achievements when the exchange received

certifications for conformance to the ISO 9001:2000 Quality Management
System and ISO 14001:2004 Environmental Management System standards
on 5 October 2007.

 In Dec 2008, we launched a new trading platform, Bursa Trade Securities,

which enables faster processing and execution of orders and provides wider
trading functions and features. Bursa Trade Securities followed on from the
implementation of Bursa Trade Derivatives two years earlier.

 Bursa Malaysia Careers


The experience you will gain if you choose a career with Bursa Malaysia is
unique. It is both a public listed company and the driver of the Malaysian
capital markets. In its role as an infrastructure provider for raising capital as
well as a frontline regulator, Bursa Malaysia aims to provide a fair, efficient
and transparent marketplace. In its role as a listed company, we aim to create
value for our stakeholders.

Bursa Malaysia is located in one of the world’s fastest growing economic

regions. It has already carved a strong niche for itself in the growing Islamic
capital market. In 2008, it was named Asia Pacific Exchange of the Year at the
annual Futures and Options World Awards. We are committed to becoming
one of Asia’s preferred exchanges.

Bursa Malaysia is a workplace for individuals looking to develop an

incomparable set of skills, grasp opportunities for growth, meet challenges
head-on and cultivate a truly global outlook.

We are always on the look for candidates with creative ideas and who
demonstrate the ability to adapt quickly to new developments - skills vital for
maintaining a competitive edge.

There’s a strong emphasis on defined professional growth and to this end the
Exchange has introduced career planning measures including a comprehensive
succession management plan and a defined performance appraisal system.

If you choose a career with us, you can look forward to a rewarding career,
work-life balance, reward and recognition programmes, and learning and
development programmes to facilitate your career progression.

Bursa Malaysia prides itself on its competitive benefits package which

includes comprehensive medical, hospitalisation and dental benefits for
employees and their dependents and an above-average EPF contribution.

For enquires on job opportunities within Bursa Malaysia, please deposit your
resume to Group Human Resources department at 
bmcareers@bursamalaysia.com and for Fresh graduates and Internship at 
milkround@bursamalaysia.com .