BURSA MALAYSIA BERHAD

Transcription

1 BURSA MALAYSIA BERHAD The Preferred Investment Destination Meeting With Investors NDR to Dubai 4 May 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.2009

2 Diversified Offerings Strong Niche In Islamic and Commodities SECURITIES DERIVATIVES ISLAMIC OFFERINGS OTHERS 2 Markets: Main Market : 843 cos ACE Market : 115 cos Market Capitalisation as at 31 March 2010 : RM1,061 billion (USD325 bn) Products : Shares 10 Derivatives Products: Commodity futures Equity futures Equity options Financial futures Sukuk Shari ah compliant equities i-reits i-etfs Bursa Suq Al-Sila Bond Market Electronic trading platform for : Government Bonds Corporate Bonds Offshore Market Non-ringgit securities REITs ETFs Sukuk Listing TSR/Warrants Loans Bonds TRADING CLEARING SETTLEMENT DEPOSITORY Integrated Products and Services 2

3 Mid-term Business Direction Continue Growing Our Core Business (Securities & Derivatives) Whilst.. Establishing a niche in Islamic Markets Building on advantage in Commodities Market Attractive Investment & Listing Destination 3

4 Our Focus in 2010 SECURITIES MARKET Drive Liquidity & Vibrancy Enhance Pre and Post Trade Equities Infrastructure and Lower Friction and Widen Access DERIVATIVES MARKET Restructure Infrastructure Develop Existing Business Leverage On Existing Strategic Partnership ISLAMIC MARKET Internationalize Islamic Markets Products and Capabilities Increase Visibility In Line With MIFC s Objectives Attract International Investors & Issuers 4

5 Key Focus and Initiatives in 2010 Greater Diversity Enhancing Efficiency Increasing Liquidity Building Quality Internationalising our market Multicurrency ETF & equity listings Converging intermediation: fast track dual licensing Retail rejuvenation Enhancing standard of CG Licensing of FCPO prices to CME E-Services: e-dividend e-research e-trading DMA marketing Maintain market integrity Expanding reach & profile of Islamic capital market Listing of derivatives products on Globex platform Approval from CFTC*, United States ASEAN Link for greater accessibility 5

6 Strategic Partnership with CME 25% Equity Stake in Bursa Malaysia Derivatives (BMD) Licensing of FCPO Prices to CME Technology Partnership Completed acquisition and group Greater restructuring Connectivity of BMD CME USD Palm Oil Contract expected to be launched 1 st Half 2010 Listing of BMD s products on Globex trading platform expected 2 nd Half 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 Bursa Malaysia s Products through Globex BMD s trading participants will be connected directly to GLOBEX and will be able to trade CME s products*. * provided they have a clearing relationship with a CME Clearing Futures Commission Merchant (FCM) and subject to regulatory approvals 6

7 Our Strength in Islamic Markets World s Largest Sukuk Market Bursa tops list of exchanges for sukuk listings in 2009, followed by Nasdaq Dubai and LSE. Approx. USD $17.6 billion sukuk listed. GE Capital became first foreign sukuk issuer. International Islamic fund raising centre World s first International trading platform facilitating commodity based Islamic financing launched August Cross Boarder trades performed by Islamic financial Institutions, including those from UK and GCC countries. Awarded Most Outstanding Islamic Financial Product by KLIFF Islamic Finance Awards Destination for global Islamic investment products 7

8 A Comprehensive Array of Shari ah Compliant Products & Services Trading based on: Exchange-driven OTC-driven Shari ah-compliant stocks Islamic REITs Islamic ETFs Islamic Index Islamic Unit Trusts Islamic Equity Market Sukuk Market Islamic Asset-based financing Islamic Equity-based financing Islamic Asset-backed securities Listing on Bursa Malaysia Shari ah-compliant trading Shari ah-compliant margin financing Islamic Stockbroking Best Practices Notes: Offered / Covered by Bursa Malaysia Islamic Stockbroking Islamic Structured Products Commodity Murabahah Exchange (Bursa Suq Al-Sila ) Capital Protective Features Asset-based portfolio Commodity-linked To facilitate Islamic finance transactions End-to-end Shari ah-compliant commodity trading platform Hybrid market Multi-commodity & multi-currency 8

9 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 On country Watch List for FTSE Global Equity Index Series: Advanced Emerging 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) 25 th among 127 Economies (Forbes Best Countries For Business Ranking) 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 9

10 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 Issuance of bonds and sukuk in RM or non-rm 3 Chinese companies already listed strong indications of more to come 10

11 REGULATORY KEY GOALS FOR 2010 REGULATORY KEY Our GOALS FOR Regulatory 2010 Role maintain market integrity 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 1 2 Enhancing the standards of corporate governance among listed companies Enhancing the effectiveness of enforcement 4 5 Promoting high standards of business conduct among market participants 3 Elevating the level of education and awareness in the industry 6 11

12 Financial Review Key Financial Highlights 13 Securities Market Overview 14 Derivatives Market Overview 15 Financial Results Snapshots 16 Performance Ratios 17 Capital Management 18 High Dividend Payout 19 Bursa s Share Price Performance 20

13 Key Financial Highlights Snapshot 1Q10 1Q09 % 4Q09 % Operating Revenue (RM mil) Net Profit (RM mil) (71) Earnings Per Share (sen) (71) * * Ratios 1Q10 1Q09 % 4Q09 % Net Profit Margin (%) (48) Annualised ROE (%) * (73) * Including capital gain of RM76 mil from the disposal of equity interest in BMD * Commentary Better group performance contributed by strong trading volume in securities market. 13

14 Securities Market Overview (As at 1 Jan 09) , (As at 31 Dec 09) 999 1,061 Highest 1, (7 Apr 2010) 1, (As at 31 Mar 2010) % 48% 36% 28% 35% 688 1,560 1,378 1,210 1,532 Commentary 1Q09 2Q09 3Q09 4Q09 1Q10 Daily Average Trading Value - OMT + DBT (RM mil) Turnover Velocity Market Capitalisation (RM bil) FBM KLCI Index Market capitalisation increased by 60% & rose to RM1.06 trillion. Daily average trading value improved significantly by 123% compared to 1Q09. 14

15 Derivatives Market Overview 147, , , , , Q09 2Q09 3Q09 4Q09 1Q10 Total Contracts Traded (mil) Open Position Daily Average Contracts 1Q10 1Q09 % 4Q09 % Total 23,889 23, , FCPO 15,794 14, ,564 1 FKLI 7,316 8,994 (19) 5,

16 Financial Results Snapshots Q10 1Q09 1Q10 1Q09 1Q10 1Q09 1Q10 1Q09 1Q10 41% 6% 15% 81% 83% 1Q09 Operating Revenue (RM mil) Other Income (RM mil) Operating Expenses (RM mil) Net Profit (RM mil) Earnings Per Share (sen) Higher operating revenue contributed by improved securities trading revenue. Total expenses increased 15% mainly due to higher depreciation & amortisation and increased staff cost. 16

17 Performance Ratios % 1Q10 1Q09 % Annualised ROE Operating EBITDA Margin Net Profit Margin Stable Revenue + Derivatives Income: Total Operating Expenses

18 Capital Management As at 31 March 2010 RM mil 1Q10 1Q09 % Shareholders Fund Financial Resources Available for Use Commentary The Company has sufficient financial resources to cover its CAPEX, Clearing Guarantee Fund commitment and working capital. 18

19 High Dividend Payout Maximising Value to Shareholders, Surpassed 75% Payout Policy FINANCIAL YEAR 2009 Historical Dividend Payout (sen/gross) - Interim dividend -Franked dividend 5.1 -Tax exempt Final Dividend (tax exempt) 9.0 % of Dividend Payout (exclude special dividend) 93% FINANCIAL YEAR Interim Dividend Final Dividend % FINANCIAL YEAR Interim Dividend 32 - Final Dividend 25 - Special Dividend 28 91% 19

20 Bursa s Share Price Performance Base 0% = 2 Jan % 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% Units FBM KLCI DAV Bursa As at 31 March 2010 Total Shareholders Return % Share Price Performance % Since IPO 240 Since IPO 162 For YTD For YTD

21 Additional Information Board Of Directors and Shareholdings Structure 22 Operating revenue 23 Stable Revenue 24 Operating Expenses 25 Securities Market Snapshot 26 Securities Market Product Diversity 27 Quarterly & Annual Velocity 28 Bursa s Potential To Grow Its Velocity 29 Market Forward P/E Evaluation 30 Offers Attractive Dividend Yields 31 Trading Participation 32 Market Foreign Ownership 33 Derivatives Market Demography 34 Derivatives Market Activity 35 Global Network 36 Sound Macro Environment 37

22 Board Of Directors and Shareholdings Structure As at 31 March Members 9 Independent Non-executive Directors 1 Executive Director 4 Public Interest Directors (also independent) Market Capitalisation of Bursa Malaysia : RM4.1 bn (USD1.3 bn) Substantial Shareholders Shareholding by Size Minister of Finance Inc. 19% 15.6% Foreign Capital Market Development Fund 19% Local 84.4% 22

23 Operating Revenue Operating revenue 1Q10 : RM81.1 mil (1Q09: RM57.6 mil) Higher securities trading revenue driven by stronger trading activity & increased investor confidence. Derivatives trading revenue declined despite marginal increase in total number of contracts due to lower FLKI contracts traded, which attract higher fees. 32% RM mil 9% 1Q10 10% 49% 11% 34% 1Q09 39% 16% 41% 1Q10 1Q09 Trading Revenue (Securities) Trading Revenue (Derivatives) Stable Revenue Other Operating Revenue* Higher other operating revenue contributed by higher conference income and new processing fee income % 10% 14% 20% Securities Trading Revenue Derivatives Trading Revenue Stable Revenue Other Operating Revenue * Other operating revenue mainly comprise conference fees, interest earned from participants contributions and perusal & processing fees 23

24 Stable revenue 1Q10 : RM25.9 mil (1Q09: RM22.7 mil) Higher listing fees due to a higher number of IPOs & warrants. 30% 3% 1Q10 15% 10% 8% 34% Stable Revenue 3% 25% 33% 1Q09 19% 14% 8% 12% Participants Fee* Listing Fee Access Fee Broker Services** Information Services Depository Services Higher depository fees mainly due to increased corporate activities. RM mil 8.8 1Q10 1Q09 Marginal decrease in information services fee due to lower subscriptions % 40% 10% 3% Listing Fees Depository Services Information Services Broker Services Participants' Fee Access Fee *Participants Fees comprises application/ admission/ initial/ registration fees, participants subscriptions and renewal fees **Broker Services comprises of data communication equipment rental income at a fixed monthly rate 24

25 Operating Expenses Staff Cost Operating Expenses 1Q10 : RM48.4mil (1Q09: RM42.2 mil) Increased staff costs due to higher number of staff and provision for bonus. 1% 5% 10% 7% 10% 1Q10 23% 44% 1% 6% 5% 7% 14% 15% 22% 1Q09 45% Depreciation & Amortisation (D&A) Market Development IT Maintenance Professional Fees Building Management Costs Other OPEX* Higher D&A mainly due to accelerated depreciation of Bursa Trade Derivatives. Lower market development expenses following the completion of CME deal. RM mil 1Q10 1Q % 21% 16% 7% 35% 4% 81% Staff Cost D&A Market Development IT Maintenance Professional Fees Building Management Costs Other OPEX Other OPEX comprises administrative expenses, CDS consumables, conference expenses, etc. 25

26 Securities Market Snapshot Market Valuation & Listed Company 1Q10 1Q09 % No. of IPOs No. of New Structured Warrants: Call Warrants Put Warrants Total Fund Raised* (RM bn): IPOs Secondary Issues Total Listed Companies Average Market Valuation 26

27 Securities Market Product Diversity Diverse Sectors Shari ah Segmentation 2% 8% 13% Leisure/ Gaming 36% 38 23% % Telcos Palm Oil Others Finance Oil & Gas Main Market 88% or 841 Shari ah Compliant Companies 63% or USD205 bn in terms of market cap 185 ACE Market Call Warrants 132 Loans REITs 993 ETFs Shariah Compliant As at 31 March 2010 Non-Shariah Compliant 27

28 Quarterly & Annual Velocity 68% Quarterly DAV & Velocity RM mn 2,800 2,400 2,000 1,600 1, % 50% 38% 39% 41% 46% 48% 2,610 2,303 36% 35% 30% 2,069 31% 32% 27% 1,907 28% 1,751 25% 23% 1,490 1,435 1,283 1,107 1,187 1,266 1, Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Daily Average Trading Value (RM mn) Turnover Velocity RM mn 2,400 2,000 1,600 1, % 33% 1, % 57% Annual DAV & Velocity 40% 39% 2,057 34% 1,924 31% 32% 34% 2,179 34% 34% 20% 23% 25% 1, ,019 1, % Daily Average Trading Value (RM mn) Turnover Velocity 28

29 Bursa s Potential To Grow Its Velocity Average Velocity From Jan - March 2010 Philippine SE New Zealand Exchange Bursa Malaysia Indonesia SE Singapore SE National Stock Exchange India Hong Kong Exchanges NYSE Euronext (Europe) The Stock Exchange of Thailand London SE Australian SE Tokyo SE NYSE Euronext (US) Taiwan SE Corp. Shanghai SE Korea Exchange Shenzhen SE 23% 30% 35% 46% 55% 59% 68% 80% 80% 85% 92% 115% 131% 133% 158% 190% 312% Source: World Federation Exchanges (WFE) 29

30 Market Forward P/E Valuation India Shanghai Malaysia Taiwan Singapore Indonesia Hong Kong Philippines Thailand Vietnam South Korea Source: Bloomberg Forward P/E Valuation for main regional indices as at 31 March

31 Offers Attractive Dividend Yields Selected Regional Markets Dividend Yield South Korea (KOSPI) China (SHASHR) 1.24% 1.26% Indonesia (JCI) 1.96% Taiwan (TWSE) Hong Kong (HSI) Singapore (FSSTI) Bursa (FBM KLCI) Thailand (SET) Australia (AS30) Philippines (PCOMP) 2.33% 2.49% 2.82% 2.82% 3.28% 3.48% 3.60% Source: Bloomberg Dividend yield for main regional indices as at 31 March

32 Trading Participation Retail Trading Participation Foreign Trading Participation % % YTD 31 Mar YTD 31 Mar 2010 Retail Institutions Others Local Foreign Others - refers 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 are based on Bursa s Information System. For period from 2001 to 2009, the information are based on Brokers submission. 32

33 Market Foreign Ownership Foreign Ownership (%) Foreign Ownership by Nationality % 26.28% Singapore UK Hong Kong 8.86% 1.20% 1.95% USA 0.45% Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 July-09 Oct-09 Dec-09 Jan-10 Feb-10 Mar % Foreign Nominees Mid-East Others 0.15% 13.67% 33

34 2 Leading Derivatives Products, FKLI & FCPO % 31 2% 26% Derivatives Market Demography % FKLI % % % As at March 2010 Local Domestic Retail % FCPO Domestic Institutions Foreign Institutions Crude Palm Oil Futures (FCPO) KL Composite Index Futures (FKLI) 3-Month KL Interbank Offered Rate Futures (FKB3) As at Local March 2010 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. 34

35 Derivatives Market Activity Quarterly (Daily Average Contracts) Annually (Total, million units) 139K 122K 136K 156K 148K 117K 142K 123K K 159K 125K 156K 138K 129K 66K 30,283 20,945 24,522 24,169 23,862 29,423 24,018 21,549 23,889 66% 31% 49K Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q Q10 KLCI Futures Others KLCI Futures Others Crude Palm Oil Futures Open Position Crude Palm Oil Futures Open Position 35

36 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 Singapore Exchange Derivatives Trading Limited Exploring future business relationship opportunities 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 36

37 Sound Macro Environment Strong Banking Sector & Ample Liquidity > 90% of assets are RM denominated Non-performing loan ratio at 1.8% (2009) Healthy Foreign Reserves > US$ January GDP Growth Projected between 4.5% to 5.5% Conductive Domestic Interest Rates Overnight policy rate: 2.25% Manageable Inflation Modest 2.0% - 2.5% for 2010 (BNM Estimate) Strong Current Account in the Region 2010F at RM billion 37

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