BURSA MALAYSIA BERHAD

Transcription

1 BURSA MALAYSIA BERHAD The Preferred Investment Destination Nomura Asia Corporate Day, London, Boston & New York 15 th 19 th November 2010 Dato Yusli Mohamed Yusoff, CEO Visit us at Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this Presentation. Whilst the Company endeavours to ensure that the contents in the presentation booklet are accurate, complete or have been obtained from sources believed by the Company to be accurate and reliable, neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation. In no event shall the Company be liable for any claim, howsoever arising, out of or in relation to this presentation booklet to the recipient of this presentation booklet and/or to any other third party. Bursa Malaysia 2010

2 Diversified Offerings Strong Niche In Islamic and Commodities SECURITIES DERIVATIVES ISLAMIC OFFERINGS OTHERS 2 Markets: Main Market : 846 cos ACE Market : 116 cos Market Oct 2010 : RM1,177 bn (USD379 bn) 10 Derivatives Products: Commodity futures Equity futures Equity options Financial futures Sukuk Shari ah compliant equities i-reits i-etfs Bond Market Electronic trading platform for : Government Bonds Corporate Bonds Products : Shares, REITs, ETFs, Warrants / CBBCs, Loans & Bonds Bursa Suq Al-Sila Offshore Market Non-ringgit securities Sukuk Listing Focus : Drive Liquidity & Vibrancy Focus : Leverage On Existing Strategic Partnership Focus : Attract International Investors & Issuers TRADING CLEARING SETTLEMENT DEPOSITORY Integrated Products and Services 2

3 Sustained Interest in Securities Market FBMKLCI Hits All Time High at 1, on 9 Nov , (31 Dec 2009) 1, (30 Sept 2010) 15% YTD 1, (29 Oct 2010) 1, (30 Sept 2009) FBM KLCI Index Market Capitalisation (RM bil) 911 1,150 26% 1,177 Turnover Velocity 36% Daily Average Trading Value - OMT + DBT (RM mil) 1,225 1,431 31% 14% 17% 37% 1,891 9M09 9M10 Oct 2010 Total Funds Raised (RM bil) From IPO & secondary offerings Number of IPOs Include REITs No. of Structured Warrants 21% % % M09 9M10 Oct M09 9M10 Oct M09 9M10 Oct

4 Slight Decrease In Derivatives Market 142, , ,932 Daily Average Contracts (Units) 25,839 Open Positions 23,831 8% 23,831 25,045 9M09 9M10 Oct ,369 6% 15,351 FCPO 17,494 8,892 8,029 FKLI 10% 7,415 9M09 9M09 Oct M09 9M09 Oct

5 Business Initiatives 2010 CME s KL Hub as a gateway for trading derivatives products Market education & engagement Internet trading for futures products E-dividend CBBCs New ETFs New REITs Migration of Derivatives products to Globex U.S. CFTC approval China CBRC Recognition Expanding reach & profile of Islamic capital market Enhancing standard of CG Relaxing admission requirements for Dual Licensing Retail rejuvenation ASEAN Link U.S. SEC Approval Building Quality Enhancing Efficiency Strengthening Liquidity Internationalising Our Market 5

6 Business Highlights in 2010 CME Partnership Listing of Malaysian derivatives products on CME s Globex CBRC Recognition QDII Malaysia Investment destination for China investors CFTC Approval Approval from US Commodity Futures Trading Commission (CFTC) to enable Malaysian Futures brokers to deal with US customers FTSE Upgrade Malaysia promoted to Advanced Emerging Market status in FTSE Global Equity Index Series U.S. SEC Approval Designated Offshore Securities Market recognition to ease trading in Malaysian listed securities & shelf listed bonds by U.S. investors 6

7 Securities Market Highlights FBMKLCI Index & No. of PLCs Diverse Sectors & Products 1, (29 Oct 2010) 2% 10% Finance (1 Jan 1998) % 17% 22% % Others Palm Oil Telcos Leisure/ Gaming Oil & Gas Main Market 216 Call Warrants ACE Market Loans FMBKLCI Index Total Listed Companies Average Market Capitalisation 997 REITs ETFs As at 29 October

8 Derivatives Market Highlights 25% Equity Stake in Bursa Malaysia Derivatives (BMD) Licensing of FCPO Prices to CME Technology Partnership Completed acquisition and group restructuring of BMD CME USD Palm Oil Contract launched 24 May 2010 Listing of BMD s products on Globex trading platform in September 2010 BMD will partner CME in ASEAN in market and technology development Joint product development and marketing Human capital development Strengthen Malaysia s position as the global price benchmark for CPO Ensure price discovery for palm oil remains in Malaysia Global distribution of Malaysian derivatives products via Globex TPs connected directly to Globex and are able to trade CME products* TPs can now market Malaysian derivatives products in the US * Subject to them having a clearing relationship with a CME Clearing Futures Commission Merchant (FCM) 8

9 Islamic Markets Highlights Bursa Suq Al-Sila Foreign Membership Admission 1. Saudi Hollandi Bank 2. Nafaes International Group General Trading and Contracting Company 3. The Islamic Bank of Asia Limited Foreign Membership Shari ah Approvals 1. Al Rajhi Bank 2. Alinma Bank 3 of a total of 14 REITs i-reit Al Hadharah Boustead REIT Al - Aqar KPJ REIT Axis REIT Market Cap OCT 10 Islamic REITs (RM mil) 2, Total REITs (RM mil) 10, % to Total REITs 22.5% 3. Bank Albilad Sukuk 31 October 2010 No. of Listings 17 % of Total Listings 73% Value listed* USD 23 billion Exchange Global Ranking 1 * Exchange Rate as of 31 October 2010 i-etf 1 of a total of 5 funds MyETF NAV OCT 10 Shari'ah-based (RM mil) Total industry (RM mil) 1, % to Total Industry 50.2% 9

10 Malaysian Market Liberalisation Country New Economic Model - high value & high income Increasing private sector role in driving business Creating a conducive environment for entrepreneurship Focus on developing Human Capital & Innovation Recognition & Competitiveness 4 th for Investor Protection (World Bank) 10 th for Resilience in crisis (Sevcorp Int l Business Confidence Survey) 25 th amongst 134 countries for Corporate Governance Framework (World Economic Forum) 10 th on World Competitiveness Scoreboard 2010 (IMD World Competitiveness Yearbook) Free Capital Mobility & Improved Access to Capital Market Access for Foreign Participation No restrictions on international investments in Malaysia. Free to repatriate capital, profits and income. Liberalised entry and ownership for foreign players in the capital market. Foreign Listings 10

11 Liberalising Access for Foreign Participation Continue to open access to capital market to attract foreign players Participants Investors Issuers Foreign Shareholding for stockbroking firm raised to 70% New licenses for foreign brokers Global players present in all segments of the Malaysian Capital Market 5 Chinese companies already listed strong indications of more to come Issuance of bonds and sukuk in RM or non-rm 11

12 Our Regulatory Role maintain market integrity REGULATORY KEY GOALS FOR 2010 BACKGROUND FOR THE REGULATORY PLAN 2009 Objective Enhance the QUALITY OF THE MARKET Goals and Strategic Objectives Investor protection High standards of conduct by PLCs & participants Efficient & effective regulation Strategic thrust Improving the quality of PLCs Improving standards of disclosure Enhancing the standards of corporate governance among listed companies Enhancing the effectiveness of enforcement Promoting high standards of business conduct among market participants Elevating the level of education and awareness in the industry 12

13 Financial Review Sustainable Financial Performance 14 Financial Results Snapshots 15 Higher Revenue Driven by Securities Market 16 Managing Costs 17 Performance Ratios 18 Strong Cash Reserves 19 13

14 Sustainable Financial Performance Operating Revenue (RM mil) Net Profit (RM mil) 6.0% 2.5% % % Q09 3Q10 9M09 9M10 3Q09 3Q10 9M09 9M10 Net Profit Margin & Annualised ROE (%) M09 9M10 8.2% Net Profit Margin Annualised ROE 14

15 Financial Results Snapshots 6% % 2% % % M09 9M10 9M09 9M10 9M09 9M10 9M09 9M10 9M09 9M10 Operating Revenue (RM mil) Other Income (RM mil) Operating Expenses (RM mil) Net Profit (RM mil) EPS (sen) 15

16 Higher Revenue Driven by Securities Market 11% 7% 11% Operating Revenue RM mil 9M09 9M10 33% 9M10 49% % % % 14.3 Equities Trading Revenue Stable Revenue Derivatives Trading Revenue Other Operating Revenue* Equities Trading Revenue Derivatives Trading Revenue Stable Revenue Other Operating Revenue Operating Revenue up by 6% to RM237 mil in 9M10 (9M09: RM224 mil) Higher equities trading revenue driven by improved sentiment. Derivatives revenue declined due to decrease in the total number of contract traded. Stable revenue increased by 4% due to higher listing and issue fees from higher no. of IPOs, structured warrants and secondary issues Listing Fees 17% Depository Services 4% Stable Revenue Information Services 2% 8.1 RM mil 9M09 9M Broker Services 2% Access Fee 2% 2 5% 2.1 Participants' Fees 16 * Other operating revenue mainly comprise conference fees, interest earned from participants contributions and perusal & processing fees. 16

17 Managing Costs 6% 8% 10% 6% 9M10 47% Staff Cost Depreciation & Amortisation (D&A) RM mil M09 21% 9M % ` 23% IT Maintenance Market Development % % Staff Cost D & A IT Maintenance Other OPEX Building Management Costs % 31% Market Development Other OPEX Building Management Costs Operating Expenses increased 9% to RM142 mil in 9M10 (9M0909: RM131 mil) Other OPEX comprises professional fees, administrative expenses, CDS consumables & etc. Increased staff cost due to higher staff development expenses and annual increments. Higher D & A due to accelerated depreciation for Bursa Trade Derivatives and related IT systems. Higher other OPEX due to write off of other IT systems following the migration of derivatives products and trading activity onto CME Globex electronic trading platform. 17

18 Performance Ratios (%) 9M09 9M10 1% % % % Net Profit Margin Operating EBITDA Margin Stable Revenue + Derivatives Trading Revenue : Return on Equity Operating Expenses 18

19 Strong Cash Reserves RM mil 809 Shareholders Fund % 9M09 9M10 RM mil Financial Resources Available for Use % 482 9M09 9M10 The Company has sufficient financial resources to cover its Clearing Guarantee Fund commitment, CAPEX and working capital requirements. 19

20 Additional Information 2009 Initiatives 21 Board Of Directors and Shareholdings Structure 22 Equities Market Activity 23 Bursa s Potential To Grow Its Velocity 24 Trading Participation 25 Market Foreign Ownership 26 Derivatives Market Activity 27 Derivatives Market Demography 28 Sound Macro Environment 29 Global Network 30 20

21 2009 Initiatives Building Blocks For An Attractive Market NEW PRODUCTS & SERVICES STRENGTHENING LIQUIDITY INTERNATIONALISING MARKETS FTSE BM Palm Oil Plantation Index Series Market Making- Structured Warrants & ETFs KLCI Conversion to FTSE More Proprietary Day Traders Multicurrency Securities Framework Restructuring of minimum bids/spread size Foreign IPOs Sukuk Listing Introduction of SBL-Negotiated Trade Strategic partnership with CME on derivatives market Bonds Listing (exempt regime) Market Education & Awareness Direct Market Access - Equity 21

22 Board of Directors & Shareholdings Structure As at 29 October Members 8 Independent Non-executive Directors 1 Executive Director 4 Public Interest Directors (also independent) Market Capitalisation of Bursa Malaysia : RM4.5 bn (USD1.4 bn) Substantial Shareholders Shareholding by Size Minister of Finance Inc. 19% Foreign 18.9% Capital Market Development Fund 19% Local 81.1% 22

23 Equities Market Activity 68% Quarterly DAV & Velocity RM mn 2,800 2,400 2,000 1,600 1, % 50% 38% 39% 41% 46% 48% 30% 2,610 31% 32% 27% 2,303 25% 2,069 23% 1,907 1,751 1,490 1,283 1,107 1, % 35% 28% 28% 31% 1,435 1,266 1,387 1,099 1,209 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Daily Average Trading Value (RM mn) Turnover Velocity 58% 57% 57% Annual DAV & Velocity 53% RM mn 2,400 2,000 1,600 1, ,372 33% 797 2,057 1,924 31% % 39% % 23% % 32% 25% ,019 2,179 1,181 1,129 1, YTD Oct 2010 Daily Average Trading Value (RM mn) 34% Turnover Velocity 34% 34% 32% 23

24 Bursa s Potential To Grow Its Velocity Average Velocity From Jan Oct 2010 Philippine SE Bursa Malaysia Indonesia SE London SE Singapore SE National Stock Exchange India Hong Kong Exchanges NYSE Euronext (Europe) Australian SE The Stock Exchange of Thailand Tokyo SE NYSE Euronext (US) Taiwan SE Corp. Shanghai SE Korea Exchange Shenzhen SE 19% 31% 36% 55% 53% 58% 62% 79% 83% 92% 111% 134% 135% 166% 177% 330% Source: World Federation Exchanges (WFE) 24

25 Trading Participation % Retail Trading Participation % Foreign Trading Participation YTD 29 Oct YTD 29 Oct 2010 Retail Institutions Others Local Foreign Others - refer to trades conducted for accounts not belonging to individuals/ institutions. Definitions of investors type clarified in 2004, hence reducing the type of investor falling under others category statistics were based on Bursa s internal system. From 2001 to 2009, the statistics were based on Brokers submission. 25

26 Market Foreign Ownership Foreign Ownership Foreign Ownership by Nationality % 24.0% Singapore UK 7.9% 0.9% Hong Kong 1.8% % USA Mid-East Others 0.4% 0.1% 12.9% Foreign Nominees Oct

27 Derivatives Market Activity Quarterly (Daily Average Contracts) Annually (Total, million units) 139K 122K 136K 156K 148K 142K 117K 123K 129K 115K 114K 85K 159K 125K 156K 123K 117K 66K 49K ,283 20,945 24,522 24,169 23,862 29,423 24,018 21,549 23,889 22,517 25,111 32% 68% % 65% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 KLCI Futures Others YTD 29 Oct 2010 KLCI Futures Others Crude Palm Oil Futures Open Position Crude Palm Oil Futures Open Position 27

28 Derivatives Market Demography FKLI FCPO % % YTD 29 Oct 2010 Local Domestic Retail Domestic Institutions Foreign Institutions YTD 29 Oct 2010 Local Domestic Retail Domestic Institutions Foreign Institutions * Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC and has the right to trade for himself - all futures contracts listed on the Derivatives Exchange. 28

29 Sound Macro Environment Strong Banking Sector & Ample Liquidity > 90% of assets are RM denominated Non-performing loan ratio at 2.2% (2Q 2010) Healthy Foreign Reserves > US$ September GDP Growth Projected between 6.0% to 6.5% Condusive Domestic Interest Rates Overnight policy rate: 2.75% Manageable Inflation Modest 2.0% - 2.5% for 2010 (BNM Estimate) Strong Current Account in the Region 2010F at RM billion 29

30 Global Network Chicago Mercantile Exchange Strategic collaboration with CME on FCPO licensing, Globex services arrangement & equity participation NYSE Euronext Technology Solutions Provider for equities & DMA platform: Through NYX Advanced Trading Solutions Hong Kong Exchanges & Clearing Sharing market surveillance information Korea Exchange Development of Financial Market Trading Platform for the bond market in Bursa Malaysia Dalian Commodities Exchange Joint organizing of China International Oil and Oilseeds Conference. Bahrain Financial Exchange Facilitating cross-border development in the Islamic financial markets, widening market reach and exchanging technological expertise. Ho Chi Minh City & Hanoi Securities Trading Centre Facilitating communication channels and fostering relations Tokyo Stock Exchange Providing mutual cooperation on personnel training & information exchange ASEAN Trading Link Cross boarder order routing and trading with SET, SGX, PET, HSX, IDX NYSE Technologies Technology Solutions Provider for the Asean Trading Link Multi Commodity Exchange of India Limited Development of commodities market and for cross listing of products Australian Securities Exchange Facilitating communication channels and fostering relations 30

31 INVESTOR RELATIONS CONTACT INFORMATION Thank you KOAY LEAN LEE INTAN DIYANA TAJUDIN ir@bursamalaysia.com Fax :