15
www.bursamalaysia.com This year has seen Bursa Malaysia become a hive of IPO activity with a number of high profile listings. The third quarter of the year was no exception, with the Exchange witnessing the dual listing of IHH Healthcare Berhad on Bursa Malaysia and Singapore Exchange. With total funds raised from IPOs this year standing at RM18 billion, Malaysia has been one of the best performing countries in the region in this regard. The FBMKLCI recently hit an all time high of 1663 points on the 9th of October, whilst volume on the exchange picked up, with Average Daily Trading Value reaching 1.7 billion compared to RM1.5 billion in the previous quarter. For the securities market, the ASEAN Trading Link went live connecting Bursa Malaysia and Singapore Exchange. Malaysia and Singapore are the first two connected markets, with Thailand expected to follow shortly. The Trading Link is a key milestone for ASEAN Exchanges and will help the region compete with the larger markets and economies. A number of enhancements to our securities market were made this quarter, including the introduction of new order and validity types for Bursa Malaysia’s trading system, which now enable investors to execute a greater variety of trading and risk management strategies. A number of other developments were made, including the enhancement to the central matching facility for straight through processing in trade settlement, as well as the extension of the edividend facility to include all types of cash payments made by listed issuers. Another improvement made this quarter was the launch of Bursa Malaysia’s new website, which has been designed to provide a more simple and efficient experience, whilst also introducing a number of new features. Bursa Malaysia Derivatives won the award for “Best Technology Innovation by an Asian Exchange” and was runner up for the “Asian Derivatives Exchange of the Year” award at the Futures & Options World Award ceremony held in Singapore. On 18th July, Bursa Malaysia Derivatives also launched its Options on Crude Palm Oil futures contract (OCPO) to complement the existing Crude Palm Oil Futures (FCPO) contract. The OCPO, which uses FCPO as its underlying contract, offers another risk management tool for industry participants to meet their hedging needs. For Islamic markets, Bursa Malaysia participated in the 3rd Global Islamic Finance Forum. The theme this year was entitled Internationalisation of Islamic Finance: Bridging Economies. The event saw around 1000 participants including 200 speakers representing industry practitioners and and Shari’ah scholars from around the globe. Finally, we continue our series on “Corporate Access” provided by the Malaysian Investor Relations Association (MIRA), providing coverage of their IR initiatives for small cap companies. If you have any feedback or comments, please email to [email protected]. Issue 3 Vol 4 OCT 2012 Updates from Bursa Malaysia Note From The Editor HIGHLIGHTS Market Highlights Asean Trading Link Goes ‘Live’, Connecting Bursa Malaysia and Singapore Exchange Bursa Malaysia Enhances Central Matching Facility For Straight Through Processing in Trade Settlement Bursa Malaysia Introduces eCash Payments Framework Bursa Malaysia Derivatives Wins ‘Best Technology Innovation by An Asian Exchange’ and Runner Up For ‘Asian Derivatives Exchange Of The Year’ Awards Regulation Bursa Malaysia Introduces Rule to Facilitate Exchange Traded Bonds and Sukuks

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Page 1: Updates from Bursa Malaysia Notebursa.listedcompany.com/newsroom/BursaBytes_3Q12.pdf · recently hit an all time high of 1663 points on the 9th of October, whilst volume on the exchange

w w w . b u r s a m a l a y s i a . c o m

This year has seen Bursa Malaysia become a hive of IPO activity with a number of high profile listings. The third quarter of the year was no exception, with the Exchange witnessing the dual listing of IHH Healthcare Berhad on Bursa Malaysia and Singapore Exchange. With total funds raised from IPOs this year standing at RM18 billion, Malaysia has been one of the best performing countries in the region in this regard. The FBMKLCI recently hit an all time high of 1663 points on the 9th of October, whilst volume on the exchange picked up, with Average Daily Trading Value reaching 1.7 billion compared to RM1.5 billion in the previous quarter. For the securities market, the ASEAN Trading Link went live connecting Bursa Malaysia and Singapore Exchange. Malaysia and Singapore are the first two connected markets, with Thailand expected to follow shortly. The Trading Link is a key milestone for ASEAN Exchanges and will help the region compete with the larger markets and economies.

A number of enhancements to our securities market were made this quarter, including the introduction of new order and validity types for Bursa Malaysia’s trading system, which now enable investors to execute a greater variety of trading and risk management strategies. A number of other developments were made, including the enhancement to the central matching facility for straight through processing in trade settlement, as well as the extension of the edividend facility to include all types of cash payments made by listed issuers. Another improvement made this quarter was the launch of Bursa Malaysia’s new website, which has been designed to provide a more simple and efficient experience, whilst also introducing a number of new features.

Bursa Malaysia Derivatives won the award for “Best Technology Innovation by an Asian Exchange” and was runner up for the “Asian Derivatives Exchange of the Year” award at the Futures & Options World Award ceremony held in Singapore. On 18th July, Bursa Malaysia Derivatives also launched its Options on Crude Palm Oil futures contract (OCPO) to complement the existing Crude Palm Oil Futures (FCPO) contract. The OCPO, which uses FCPO as its underlying contract, offers another risk management tool for industry participants to meet their hedging needs.

For Islamic markets, Bursa Malaysia participated in the 3rd Global Islamic Finance Forum. The theme this year was entitled Internationalisation of Islamic Finance: Bridging Economies. The event saw around 1000 participants including 200 speakers representing industry practitioners and and Shari’ah scholars from around the globe.

Finally, we continue our series on “Corporate Access” provided by the Malaysian Investor Relations Association (MIRA), providing coverage of their IR initiatives for small cap companies.

If you have any feedback or comments, please email to [email protected].

Issue 3 Vol 4 OCT 2012

Updates from Bursa Malaysia

Note From The Editor

HIGHLIGHTSMarket Highlights

Asean Trading Link Goes ‘Live’, •Connecting Bursa Malaysia and Singapore Exchange

Bursa Malaysia Enhances Central •Matching Facility For Straight Through Processing in Trade Settlement

Bursa Malaysia Introduces eCash •Payments Framework

Bursa Malaysia Derivatives Wins ‘Best •Technology Innovation by An Asian Exchange’ and Runner Up For ‘Asian Derivatives Exchange Of The Year’ Awards

RegulationBursa Malaysia Introduces Rule to Facilitate •Exchange Traded Bonds and Sukuks

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MARKET HIGHLIGHTS

ASEAN TRADING LINK GOES ‘LIVE’, CONNECTING BURSA MALAYSIA AND SINGAPORE EXCHANGE

The rollout of the much-awaited ASEAN Trading Link went ‘live’ on 18th July, connecting Bursa Malaysia and Singapore Exchange. The launch was officiated by YB Senator Dato’ Ir. Donald Lim, Deputy Finance Minister of Malaysia together with YABhg Tun Mohamed Dzaiddin Hj Abdullah, Chairman of Bursa Malaysia, Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia and Mr. Magnus Bocker, Chief Executive Officer of Singapore Exchange.

In his speech, Dato’ Tajuddin Atan expressed the significance of the ASEAN Trading Link in promoting the growth of the ASEAN capital market:

“The ASEAN Trading Link marks the first key milestone for ASEAN Exchanges towards breaking down the barriers to cross-border trade in ASEAN. The ASEAN Trading Link is an excellent conduit to tap the region’s growth opportunities as it allows investors an easy access to a wider investment selection across the connected markets.”

Malaysia and Singapore are the first two connected markets in ASEAN, while it was confirmed at the launch that Thailand will be next when The Stock Exchange of Thailand connects on the ASEAN Trading Link in October 2012.

Mr Magnus Bocker, Chief Executive Officer of Singapore Exchange, said: “The participation of individual ASEAN markets through the ASEAN Trading Link will help the region compete with bigger markets and economies. As capital flows to and within this region increases, companies benefit from deeper liquidity pools to finance business expansion. Investors will also gain from access to more investment opportunities. In short, this is a win-win situation for all market participants.”

“Over the longer term, with the ASEAN Trading Link in place beginning with Bursa Malaysia and SGX, more international investors can leverage the easier access to ASEAN and its many opportunities.”

To date, 31 Brokers from across Malaysia, Singapore and Thailand, have already joined the ASEAN Trading Link signalling a positive start to the rollout. The Pioneer Broker Partners from Malaysia and Singapore were unveiled at the launch: A.A. Anthony Securities Sdn Bhd, Affin Investment Bank Bhd, CIMB Investment Bank Bhd, HwangDBS Investment Bank Bhd, Kenanga Investment Bank Bhd, Maybank Investment Bank Bhd, Mercury Securities Sdn Bhd, OSK Investment Bank Bhd and RHB Investment Bank Bhd, CIMB Securities (Singapore) Pte Ltd, DMG & Partners Securities Pte Ltd, Lim & Tan Securities Pte Ltd, Maybank Kim Eng Securities Pte Ltd, Phillip Securities Pte Ltd and UOB Kay Hian Pte Ltd.

“Most importantly, we are pleased to have the commitment of two of ASEAN’s leading investment banks, namely CIMB Investment Bank and Maybank Investment Bank, as this sends out a strong message that the large market players are certainly on board and view the ASEAN Trading Link as a veritable tool to grow their business across ASEAN and ultimately, bring greater liquidity in to the ASEAN capital market. Inevitably, our listed companies would also benefit from greater international exposure to regional investors and increased liquidity”, explained Dato’ Tajuddin. ASEAN Exchanges provides an easily identifiable reference for investors in the form of the ASEAN Stars. The ASEAN Stars comprise 180 ASEAN blue-chip stocks representing the 30 most exciting companies of each ASEAN country, as ranked by investability in terms of market

“The ASEAN Trading Link marks the first key milestone for ASEAN Exchanges towards breaking down the barriers to cross-border trade in ASEAN.”

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MARKET HIGHLIGHTS

capitalisation and liquidity.

The ASEAN Exchanges website (www.aseanexchanges.org) is also being enhanced with new features to allow investors to view ASEAN capital market as an asset class. The enhanced website to be launched soon will showcase unique and dynamic aggregated content on ASEAN investment opportunities which allows investors to view market performance of the seven different ASEAN exchanges including FTSE/ASEAN40, Heat Map on the Top 30 ASEAN Stars and a one-click access to ASEAN Stars company analysis, market research, commentary, FTSE analytics weekly round-up of markets as well as news updates.

From Left to Right: Dato’ Azmil Mohd Zabidi (Malaysian Ambassador to Vietnam), Magnus Bocker (CEO, Singapore Exhange), Tun Mohammed Dzaiddin Hj Abdullanh (Chairman, Bursa Malaysia), Dato’ Donald Lim (Deputy Finance Minister, Malaysia), Dato’ Tajuddin Atan (CEO, Bursa Malaysia), Charamporn Jotikasthira (President, The Stock Exchange of Thailand).

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MARKET HIGHLIGHTS

DUAL LISTING OF IHH HEALTHCARE BERHAD (IHH) ON BURSA MALAYSIA AND SINGAPORE EXCHANGE

Cross Border Transfer Mechanism for IHH

IHH was listed and traded on both the Main Board of Bursa Malaysia and on Singapore Exchange (SGX) on 25 July 2012. The listing was one of the largest listings in the world this year after Facebook, Japan Airlines and Felda Global Ventures Berhad. The listing of IHH, Asia’s largest hospital operator, raised a total of RM6.3 billion and shares closed 10% higher than the IPO price at RM3.09 after the first day of trading.

With the listing of IHH, there are currently six Malaysian listed companies that have dual listing on other Exchanges. The other dual listing include United Plantations Berhad (Copenhagen), YTL Corporation Berhad (Japan), Malaysian Smelting Corporation Berhad (Singapore), Inch Kenneth Kajang Rubber Plc (UK) and Media Chinese Berhad (Hong Kong).

The shares listed on both Exchanges are fully fungible, therefore shareholders of IHH will be able to transfer their shares between both Exchanges via a standard cross transfer mechanism formulated by SGX.

Another enhancement made this quarter was to the Central Matching Facility, an automated settlement system offering end-to-end electronic matching of trade and settlement details, between Trading Clearing Participants (stock broking companies) and Non-Trading Clearing Participants (custodian banks).

The Central Matching Facility allows market participants to enhance their back-office settlement operations by increasing the capacity to handle a higher number of pre-matched transactions, minimising settlement risks and errors and facilitating straight-through processing.

Through the Central Matching Facility, Clearing Participants will be able to upload post-trade settlement instruction files containing records of Depository Transfers and Institutional Settlement Service (ISS) transactions to the system for processing. Where there is matching for the ISS, the system will automate the creation of the ISS instructions.

With the new enhancements, the system will be able to further automate settlement instructions from multiple custodian banks and improve operational efficiency and turnaround time between the Clearing Participants.

BURSA MALAYSIA ENHANCES CENTRAL MATCHING FACILITY FOR STRAIGHT THROUGH PROCESSING IN TRADE SETTLEMENT

From Left to Right: Dr Lim Cheok Peng (MD, IHH Healthcare Bhd), Tan Sri Dato’ Dr Abu Bakar Suleiman (Chairman, IHH Healthcare Bhd), Tan Sri Azman Mokhtar (MD, Khazanah Nasional Bhd), Dato’ Tajuddin Atan (CEO, Bursa Malaysia).

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MARKET HIGHLIGHTS

BURSA MALAYSIA ENHANCES TRADING SYSTEM BY INTRODUCING NEW ORDER AND VALIDITY TYPES

Bursa Malaysia made enhancements to its trading system through the introduction of new order and validity types, allowing market participants to execute a greater variety of trading and risk management strategies. The enhancements form part of the initiatives undertaken by the Exchange to improve the market’s framework and efficiency.

With the new enhancements, brokers will be able to utilise new order and validity types such as Market to Limit order, Fill and Kill, and minimum quantity, when keying in orders. Previously, the trading system could only support two types of orders, namely market orders and limit orders.

The Market to Limit order enables orders to be matched at the current market price, and set a price limit for the remaining orders to ensure that all orders are matched at the same price. The Fill and Kill validity allows orders that are not matched at the desired price to be deleted from the order book while the minimum quantity validity allows order to be matched only if it fulfills the minimum quantity criteria.

Bursa Malaysia has extended its eDividend facility to include all types of cash payments made by listed issuers to their securities holders. The enhancement of the electronic payment framework was done as a result of the encouraging response to the existing facility. Currently 80% of the total dividend payments received by securities holders are made via eDividend.

Under the eCash Payment framework, listed issuers are now required to pay specified types of cash payments as determined by the Exchange, by directly crediting the same into the bank accounts of their securities holders who have provided their bank account details to Bursa Malaysia Depository (Bursa Depository). Such cash payments include payments of interest or profit rates on debt securities or sukuk, income distribution by Real Estate Investment Trust (REIT) or Exchange Traded Fund (ETF) and capital repayment. In addition, Bursa Depository may also facilitate listed issuers who wish to voluntarily pay other types of cash payments electronically to their securities holders.

The relevant rule changes to the Listing Requirements and the Rules of Bursa Depository together with the respective Frequently Asked Questions (FAQs) on this initiative have been made available for reference at the Exchange’s website, www.bursamalaysia.com.

Securities holders that have not opted for the eCash payment facility are encouraged to do so through their stockbrokers as they are eligible to enjoy the administration fee waiver accorded by Bursa Malaysia until 18 April 2013.

Details of eDividend can be obtained from Bursa Malaysia’s website.

BURSA MALAYSIA INTRODUCES eCASH PAYMENTS FRAMEWORK

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MARKET HIGHLIGHTS

BURSA MALAYSIA DERIVATIVES WINS ‘BEST TECHNOLOGY INNOVATION BY AN ASIAN EXCHANGE’ AND RUNNER UP FOR ‘ASIAN DERIVATIVES EXCHANGE OF THE YEAR’ AWARDS

Bursa Malaysia Derivatives (BMD) won the ‘Best Technology Innovation by an Asian Exchange’ award and emerged runner up for the ‘Asian Derivatives Exchange of the Year’ award at the Futures & Options World Award ceremony held on 18 September 2012 in Singapore. Factors that contributed to the recognition included easy accessibility and global connectivity of the Malaysian derivatives market.

BMD had implemented several technological enhancements over the last two years which included migration to the Chicago Mercantile Exchange’s GLOBEX Trading Platform, hosting an Order Management System to move domestic futures brokers to a CME-certified broker front-end system and launching a new Derivatives Clearing System with multiple functionalities and capabilities with a SPAN risk-based margining system. As part of its market development drive, Options on FKLI was re-launched and a new product, Options on Crude Palm Oil futures contract (OCPO) was subsequently introduced in July 2012.

The success of BMD is testament to the statement made by the Prime Minister of Malaysia in his speech at the 2009 World Capital Market Symposium that the collaboration between Bursa Malaysia and CME Group will enhance competitiveness and develop a robust derivatives market through co-operative cross link reach and opportunities.

From Left to Right: Steven Lai Choon Lim (OSK Investment Bank Bhd), Phil Millar (CME Asia), Julien Le Noble (CME Asia), Sree Kumar C.K.Nayar (Bursa Malaysia Derivatives), Chong Kim Seng (CEO, Bursa Malaysia Derivatives), Azila Abdul Aziz (Kenanga Deutsche Futures Sdn Bhd), Natarajan Narayanasamy (LT International Futures (M) Sdn Bhd).

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MARKET HIGHLIGHTS

The eligibility requirement to become futures broker representatives of Bursa Malaysia Derivatives (BMD) under the Dual Licensing Fast Track (DLFT) programme has been further eased from 10 to 5 years of experience, subject to dealer representatives attending an additional 2-day familiarisation program. The extension of the DLFT programme will be for another two years until June 2014. The previous participation criteria requiring candidates to have at least 10 years of experience and attendance of a 4-day familiarisation program will remain for the more experienced dealer representatives.

The DLFT programme which is jointly organised by the Securities Industry Development Corporation (SIDC) and BMD was initiated in June 2011. It is designed for Capital Market Services Representatives License holders to achieve dual licence status for dealing in securities and trading in futures contracts.

The additional two-day familiarisation programme will cover product knowledge, clearing and settlement and risk management. Participants of the programme should be able to know hedging and arbitraging strategies on the trading of commodity, equity and financial derivatives on BMD, upon completing the programme.

ELIGIBILITY REQUIREMENT FOR DUAL LICENSING FAST TRACK PROGRAMME EASED FURTHER

In early July this year, Bursa Malaysia launched its new and improved website aimed at providing a simpler, friendlier and more efficient web experience for users. The new website is divided into two broad sections - the Corporate and Market sections - to provide a clear differentiation of the dual role played by Bursa Malaysia as a listed company and an exchange marketplace.

The new features include faster and easier search functions for stock prices, all-in-one listed company profile pages and improved classification of information.

The beta/preview version of the new website was made available from 26 March 2012 and the public had given their comments and feedback. Some of the suggestions received were incorporated into the new website.

Under the new design, each listed company has a dedicated all-in-one page featuring information on its share price, corporate announcements as well as recent trading and corporate activities. The stock price page features improved display of data and market information filtering, with direct links to companies’ profile pages. The new website also incorporates an improved filtering system for the display of corporate announcements.

Dedicated pages for the securities, derivatives and Islamic markets, as well as a new dropdown menu and quick links will enable easier navigation between sections. The new search bar allows for auto completion of search results with smart matching, resulting in faster searches for stock quotes and company profiles. Users are now also able to register for Bursa Malaysia’s events online.

BURSA MALAYSIA LAUNCHES NEW WEBSITE

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MARKET HIGHLIGHTS

BURSA MALAYSIA DERIVATIVES LAUNCHES OPTIONS ON CRUDE PALM OIL FUTURES

On 17 July 2012, Bursa Malaysia Derivatives Berhad (BMD) launched Options on Crude Palm Oil futures contract (OCPO), the first Asian exchange-traded agricultural options contract, to complement the highly successful Crude Palm Oil Futures (FCPO) contract.

The OCPO, which uses FCPO as its underlying contract, offers another risk management tool for industry participants to better meet their hedging needs. Through BMD’s partnership with CME Group, OCPO is listed and traded on the CME Globex® electronic trading platform, making it accessible to traders around the world.

The speculative position limits are increased to 10,000 futures equivalent contracts net long or net short for any single month, and 15,000 futures equivalent contracts for all contract months combined. The speculative position limits are combined together with the FCPO contract.

BMD has embarked on a series of awareness and educational programmes to highlight the benefits of OCPO trading and the new opportunities offered to market participants.

Option on Ringgit Malaysia Denominated Crude Palm Oil Futures (OCPO)OCPO: Contract Specifications

 

Contract Code Calls: C OCPO Puts: P OCPO

Type European Options

Underlying Ringgit Malaysia Denominated Crude Palm Oil Futures (FCPO) contract.

Contract Size One FCPO contract (of a specified month) of 25 metric tons (MT)

Tick Size RM0.50 per MT (RM12.50 per contract)

Strike Price Intervals

Trading shall be conducted for put and call options with striking prices in integral multiples of RM50 per MT. There will be at least 11 strike prices (five are in-the-money, one is at-the-money and five are out-of-the-money).

Contract Months

Monthly (list the third, fourth, fifth and sixth forward months) then alternate months going out 24 months of the FCPO contract. The first spot option contract month will be trading the 3rd month FCPO contract.

Daily Price Limit

There will be no daily price limits.

Last Trading Day

The spot options will cease trading at 6pm on the 10th day of every month, or the preceding business day if the 10th is a non-business day. The futures position will be delivered at end-of-day process and will be available for trading on the next day.

Exercise In the absence of contrary instructions delivered to the Clearing House, an option that is in-the money at expiration shall be automatically exercised. Exercise results in a long 3rdmonth FCPO position, which corresponds with the option’s contract month for a call buyer or a put seller, and a short 3rd month FCPO position for a put buyer or a call seller.

Expiration Unexercised options shall expire at 6.00pm on the last day of trading.

Trading Hours First trading session: Malaysian time: 10.30 a.m. to 12.30 p.m. Second trading session: Malaysian time: 3.00 p.m. to 6.00 p.m.

Speculative Position Limit

10,000 futures equivalent contracts net long or net short for any single month. 15,000 futures equivalent contracts for all contract months combined. *Speculative Position Limits are combined together with the FCPO contract.

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CORPORATE DASH IN THE CITY RAISES FUNDS FOR COMMUNITIES IN NEED

Kuala Lumpur Rat Race 2012

Once again, Malaysia’s corporate citizens donned their running shoes for a spirit-lifting sprint through Kuala Lumpur’s Golden Triangle. As the sweltering heat pounded the streets of the capital, racers dug in deep to complete the grueling course, and all for a good cause – eventually raising a record RM2.2 million for charity.

Surpassing last year’s collection of RM1.93 million, more than 800 runners, consisting of 148 teams from both private and public listed companies signed up for this feisty sporting event.

The excitement started early with free archery games, gladiator jousts and bungee runs, while Queen’s time honoured anthem “We Will Rock You” pulsated through the air. It was obvious the teams were in competitive mood, and after all the hard training, there was obviously some serious business was “going down”.

Not to be outdone, the cheering squads and supporters also raised their game, with special ‘treats’ this year including the likes of the ‘flash mob’. The bright display of corporate colours and costumes, combined with the beat of the drums and chants of the supporters created the vibrant atmosphere for which the Rat Race is well known. This year, the event definitely lived up to its reputation as an occasion anticipated by many.

This year’s collection of RM2.2 million most definitely brought some cheer and happiness to the beneficiaries who champion causes for the underprivileged and the unfortunate. Funds raised were distributed to 26 charities from all over Malaysia. The organisers of Rat Race 2012 would like to extend their appreciation to all participating companies and sponsors for their continued support towards this charity race.

MARKET HIGHLIGHTS

The beneficiaries receiving their cheques. The scorching heat did little to dampen the spirit.

The runners get off to an energetic start.

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From the 18th to 20th September 2012, Bursa Malaysia took part in the 3rd Global Islamic Finance Forum 2012 (GIFF 2012) hosted by Bank Negara Malaysia (BNM). The theme of the event this year held at BNM Sasana Kijang was “Internationalisation of Islamic Finance: Bridging Economies.”

GIFF is a premier international event in the Islamic Finance calendar which is held periodically in support of the Malaysia International Islamic Financial Centres (MIFC) initiatives. The event was organised in collaboration with the Securities Commission Malaysia (SC), Association of Islamic Banking Institutions Malaysia (AIBIM), Islamic Banking and Finance Institute Malaysia (IBFIM), Malaysian Takaful Association (MTA), International Shari’ah Research Academy for Islamic Finance (ISRA) and Bursa Malaysia.

The event saw around 1000 participants including 200 speakers representing industry practitioners, regulators, Shari’ah scholars and business communities from around the globe.

CEO of Bursa Malaysia Dato’ Tajuddin Atan, attended at the launch of Bloomberg AIBIM Bursa Malaysia Corporate Sukuk Index. This is the third sukuk index launched by Bloomberg in collaboration with Bank Negara, AIBIM and Bursa Malaysia, for the Malaysian market. The index will serve as a benchmark for investors of ringgit-denominated Islamic bonds in Malaysia, the world’s biggest sukuk market.

At the event, Bursa Malaysia was invited to speak at The Global Islamic Liquidity Management Forum and the Industry Specific Dialog. Both slots were represented by En. Jamaluddin Nor Mohamad, Head of Islamic and Alternative Markets. This provided the opportunity to showcase Bursa Malaysia’s wide range of products and services focusing on the Bursa Suq Al-Sila’ platform and other Islamic products.

The SC and Bursa Malaysia also hosted a forum entitled the International Islamic Capital Market Forum (IICMF). Held on the last day of GIFF, the forum gathered all industry practitioners, regulators, Shari’ah scholars and business communities from around the globe to discuss the International Islamic Capital Market.

GLOBAL ISLAMIC FINANCE FORUM 2012

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Bursa Malaysia shared a booth with MIFC, SC and Labuan IBFC. The booth acted as an information hub to the participants as well as showcasing our products and services.

ISLAMIC MARKETS

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REGULATION

On 26th September 2012, Bursa Malaysia introduced rules to facilitate the listing and trading of Exchange Traded Bonds and Sukuks (ETBS) on Bursa Malaysia Securities Berhad (Bursa Securities). This essentially paved for the provision of wider access for this asset class to Bursa Malaysia’s investors.

In the past, bonds have been primarily accessible to Institutional and high net worth individuals. With the introduction of these rules, issuers now can list bonds or sukuks on Bursa Malaysia, and thus tap into the liquidity provided by retail investors.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia, expressed the significance of this initiative which will promote greater price transparency and disclosure of these instruments to investors especially retail investors:

“The introduction of the Exchange Traded Bonds and Sukuks on Bursa Malaysia complements our goal to offer a diverse range of tradable products on the Exchange. We are creating an environment that provides something for every type of investor. In this case, bonds and sukuks from a wider issuer base will be listed and traded on our Exchange and these complement the diverse selection of stocks, exchange traded funds (ETFs) and REITs already listed on the Bursa Malaysia as well as our complete range of derivatives and futures products.”

ETBS, a project under the National Key Economic Areas (NKEA), is aimed at offering greater choices for investors who are seeking products that yield stable returns with capital protection. Aside from enhancing the diversity of products offered to investors, this initiative is also expected to attract a new segment of investors into the market and provide issuers with greater flexibility in their fund raising exercises.

This initiative is also a big step towards broadening and deepening the bond/sukuk markets, with the advantage of converging a whole spectrum of bond/sukuk market players.

BURSA MALAYSIA INTRODUCES RULE TO FACILITATE EXCHANGE TRADED BONDS AND SUKUKS

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An initiative for small-cap companies

In advocating good Investor Relations (IR) practices, the Malaysian Investor Relations Association (MIRA) and its Associate Member and IR consultant, ZJ Communiqué initiated “IR Day” for public listed companies (PLCs) as a platform to enhance their outreach with the investment community.

Developed for PLCs to share their corporate values through IR, the IR Day also presented an opportunity to uncover small-cap PLCs with healthy fundamentals. The organisers considered factors such as good financial track record, decent dividend returns and undemanding valuations in selecting the PLCs.

The IR Day pilot project, launched on 17 April 2012, was well attended by key members of the investment community namely the research heads, analysts and fund managers. Riding on the success of the pilot project, the second IR Day was held on 19 September 2012.

The half-day event featured four PLCs giving an overview of their business and future plans. After the group presentations, question and answer sessions were held at separate rooms for the participants to engage in a two-way dialogue with the management teams of the PLCs.

With the encouraging participation by PLCs and the buy and sell-side community, the IR Day will remain an ongoing initiative to enhance the outreach of the participating PLCs, enlarging their network and visibility amongst the investment community.

The event has demonstrated the effectiveness of PLCs embracing a pro-active IR approach to reach out to the investment community by sharing their growth stories and future plans.

The eight PLCs showcased through the IR Day were:

• ECSICTBerhad• GreenyieldBerhad• GWPlasticsHoldingsBerhad• KelingtonGroupBerhad• SKPResourcesBerhad• SMRTechnologiesBerhad• TASCOBerhad• TDMBerhad

To know more about MIRA, please visit the Association’s website www.mira.com.my. For more information on the IR Day, kindly contact Mr. Anthony Chin-MIRA Associate Director at telephone no.: +603-20347491 or email: [email protected]

“IR DAY” – UNFOLDING CORPORATE VALUES THROUGH IR

CORPORATE ACCESS

BursaBytes 11

Corporate small group meeting with the buy and sell-side participants.

Group corporate presentation with the buy and sell-side participants.

Malaysian Investor Relations Association Berhad (MIRA) is a company limited by guarantee established by Bursa Malaysia to promote the good practice of investor relations by public-listed companies.

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12 BursaBytes

SECURITIES MARKET SNAPSHOT 3Q 2012Indices 3Q 2012 2Q 2012FTSE Bursa Malaysia KLCI FTSE Bursa Malaysia Top 100 FTSE Bursa Malaysia EMAS FTSE Bursa Malaysia ACE FTSE Bursa Malaysia Palm Oil Plantation FTSE Bursa Malaysia Asian Palm Oil Plantation (USD) FTSE Bursa Malaysia Asian Palm Oil Plantation (MYR) FTSE Bursa Malaysia Hijrah Shariah FTSE Bursa Malaysia EMAS Shariah Market Highlights Units 3Q 2012 2Q 2012Market Velocity (Quarterly Average) % Market Capitalisation (as at end of quarter) RM bil Total Trading Volume (OMT + DBT) bil Trading Volume (OMT) bil Average Trading Volume (OMT) bil Total Trading Value (OMT + DBT) RM bil Trading Value (OMT) RM bil Average Trading Value (OMT) RM bil No. of Trading Days day No. of PLCs counter No. of Listed REITs counter No. of Listed Structured Warrants counter New Listings - IPOs (Including REITs) counter New Listings - Structured Warrants counter No. of Delisted Companies counter Total Funds Mobilised RM bil No. of Rights and Bonus Issues unit No. of New CDS Accounts Opened account

FOREIGN OWNERSHIP BASED ON MARKET VALUE

SECURITIES

1636.6610,947.8911,106.564,304.68

17,349.3719,143.2020,330.0012,398.5111,341.75

28.01,417

73701.1

103971.661

93016

4606

1462

9.022

46,746

18.5%  

18.1%  

18.1%   21.2%  

21.6%  

24.2%  

26.2%  

21.3%  

20.4%  

21.9%  

22.7%  

2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011  As  at  year  end  

1,599.1510,742.9710,917.644,354.70

17,822.8319,178.5821,120.9411,853.0511,003.17

26.81,368

76721.196911.463

92715

4016

14018

11.314

103,053

22.2%  

22.4%  

22.7%  

22.4%  22.5%  

22.8%  

23.0%  23.1%  

22.8%  

23.3%  

23.5%  23.6%  

Oct-­‐11  

Nov-­‐11  

Dec-­‐11  

Jan-­‐12  

Feb-­‐12  

Mar-­‐12  

Apr-­‐12  

May-­‐12  

Jun-­‐12  

Jul-­‐12  

Aug-­‐12  

Sep-­‐12  

As  at  month  end    

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0  

200  

400  

600  

800  

1,000  

1,200  

1,400  

1,600  

0  

1  

2  

3  

4  

5  

Oct-­‐11  

Nov-­‐11  

Dec-­‐11  

Jan-­‐12  

Feb-­‐12  

Mar-­‐12  

Apr-­‐12  

May-­‐12  

Jun-­‐12  

Jul-­‐12  

Aug-­‐12  

Sep-­‐12  

Ma#$e&  (a)i&ali,a-o/  (bil)  

Volume  (bil)  &  Value

 (RM  bil)  

Total  Val   Total  Vol   MDt  EapFtalFGaHon  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

0  200  400  600  800  

1,000  1,200  1,400  1,600  1,800  

Oct-­‐11

 

Nov-­‐1

1  

Dec-­‐1

1  

Jan-­‐12

 

Feb-­‐1

2  

Mar-­‐12

 

Apr-­‐1

2  

May-­‐12

 

Jun-­‐12

 

Jul-­‐12

 

Aug-­‐1

2  

Sep-­‐1

2  

Market  Velocity  

FBMKLCI  

FBMKLCI   Velocity  

INFORMATION

We also offer a wide range of products and services for our investing public. To learn more, kindly click on the following:

• IPO Summary

• Historical Information

• Bursa Station

DAILY MARKET TREND: FBMKLCI AND MARKET VELOCITY

DAILY MARKET TREND: MARKET CAPITALISATION, TOTAL VOLUME AND VALUE

SECURITIES

BursaBytes 13

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14 BursaBytes

DERIVATIVES

DERIVATIVES MARKET SNAPSHOT 3Q 2012

Margin Rates

INFORMATIONFor more derivatives information, click on the following:

• Products • Market Statistics • Circulars

DISCLAIMER:Bursa Malaysia does not make any recommendation or endorsement regarding any securities or derivatives products identified in this newsletter. Please seek the advice of professionals, as appropriate, in respect of the evaluation of any specific securities or derivatives product, index, report, opinion, advice or other content. Whilst Bursa Malaysia endeavours to ensure that the contents in this newsletter are accurate, correct or have been obtained from sources believed by Bursa Malaysia to be accurate and reliable, please take notice that all information is provided on an “as is” basis without warranties of any kind and Bursa Malaysia hereby disclaims all expressed, implied and statutory warranties of any kind to the recipient of this newsletter and/or any third party. In no event shall Bursa Malaysia be liable for any claim, howsoever arising, out of or in relation to this newsletter to the recipient of this newsletter and/or to any other third party.

0  

200,000  

400,000  

600,000  

800,000  

1,000,000  

1,200,000  

Jan-­‐

11  

Feb-­‐

11  

Mar

-­‐11  

Apr-­‐11

 

May

-­‐11  

Jun-­‐

11  

Jul-­‐1

1  

Aug-­‐

11  

Sep-­‐

11  

Oct

-­‐11  

Nov

-­‐11  

Dec-­‐

11  

Jan-­‐

12  

Feb-­‐

12  

Mar

-­‐12  

Apr-­‐12

 

May

-­‐12  

Jun-­‐

12  

Jul-­‐1

2  

Aug-­‐

12  

Sep-­‐

12  

KLCI  Futures   Crude  Palm  Oil  Futures   Exchange  Total  

Volume

0  20,000  40,000  60,000  80,000  

100,000  120,000  140,000  160,000  180,000  200,000  

Jan-­‐

11  

Feb-­‐

11  

Mar

-­‐11  

Apr-­‐11

 

May

-­‐11  

Jun-­‐

11  

Jul-­‐1

1  

Aug-­‐

11  

Sep-­‐

11  

Oct

-­‐11  

Nov

-­‐11  

Dec-­‐

11  

Jan-­‐

12  

Feb-­‐

12  

Mar

-­‐12  

Apr-­‐12

 

May

-­‐12  

Jun-­‐

12  

Jul-­‐1

2  

Aug-­‐

12  

Sep-­‐

12  

KLCI  Futures   Crude  Palm  Oil  Futures   Exchange  Total  

Open Interest

Combined Commodity

SPAN Price Scan Range

(RM)

SPAN Volatility Scan Range

(%)

Spot Month Charge (RM)

Spot Month Spread

(RM/pair)

Back Month Spread

(RM/pair)

Short Option Minimum (RM)

New 27/09/2012 4,000 3 - 350 300 50Previous 3/9/12 4,000 2 - 350 300 50New 27/09/2012 6,000 7 250 - 1,250 50Previous 3/9/12 6,000 4 250 - 1,000 50

KLI

CPO