www.bursamalaysia.com Note From The Editor Updates from Bursa Malaysia Issue 2 Vol 5 JUL 2013 The second quarter of the year saw the Exchange witness a significant spike in market activity following the conclusion of the General Election, with the value of shares traded reaching over RM5 billion on the 6th of May. Average daily trading value shot up 39% quarter on quarter to reach RM2.4 billion, whilst the FBMKLCI climbed to reach an all time high of 1,788.43 points on the 14th of May. Highlights for this issue include the 9th Invest Malaysia capital market conference held on the 13th and 14th of June, which showcased 52 Malaysian multinational champions covering a diverse range of sectors. With 45% of all FBMKLCI corporate revenue derived from overseas operations, this year s conference highlighted how Malaysia is fast emerging as ASEAN s multinational marketplace. On 5th June, Bursa Malaysia hosted the pre-event to the 2013 Global Summit of Women. The highly regarded annual gathering features prominent women leaders in governments, business and the corporate world from more than 70 countries. The event was officiated by Datin Paduka Seri Rosmah Mansor, who also took the opportunity to launch a coffee table book featuring a compilation of 30 stories titled Successful Women Entrepreneurs. In derivatives this quarter, Bursa Malaysia Derivatives branching initiative took off with the establishment of 2 futures-only branch offices in Johor by Phillip Futures Sdn Bhd. The initiative was established to enable futures brokers to expand their business reach by setting up branch offices and trading kiosks in various locations in Malaysia. Finally, for regulation this issue, we highlight Bursa Malaysia s engagement efforts, covering a session entitled A Morning with Derivatives Surveillance, held with compliance officers and risk managers from Trading Participants and Associate Participants. The session, held on 2nd May, was aimed to provide a better insight into derivatives surveillance. If you have any feedback or comments, please email to BursaBytes@bursamalaysia.com. HIGHLIGHTS Invest Malaysia 2013: Malaysia Emerges as Asean s Multinational Marketplace Datin Paduka Seri Rosmah Officiates the 2013 Global Summit of Women Market Ceremony & Book Launch at Bursa Malaysia Bursa Malaysia Derivatives Branching Initiative Takes Off Bursa Malaysia Securities Introduces Green Lane Policy to Enhance Efficiency of Doing Business for Equities Brokers Bursa Malaysia Securities Berhad Invites Comments on Proposals in Relation to the Review of Timeframe for Issuance of Financial Statements and Annual Reports
MARKET HIGHLIGHTS INVEST MALAYSIA 2013: MALAYSIA EMERGES AS ASEAN S MULTINATIONAL MARKETPLACE Prime Minister Dato Sri Mohd Najib Tun Abdul Razak making a salient point during his Keynote Address at Invest Malaysia 2013. Malaysia s status as ASEAN s Multinational Marketplace has been further cemented with the success of Invest Malaysia 2013 (IMKL 2013). This year s conference, themed: ASEAN s Multinational Marketplace, showcased 52 of Malaysia s largest multinational companies that have gained leading positions in key sectors across ASEAN and who provide unique investment opportunities for global investors to take advantage of ASEAN s growth. Over 60 global fund management companies, with over USD15 trillion of assets under management (AUM), attended the conference, participating in over 500 group and 1-on-1 meetings with Malaysia s leading companies listed on Bursa Malaysia. The number of meeting requests filled, which was nearly a 50% increase from 2012, validates the strong interest in Malaysia and the multitude of investment opportunities from companies listed on Bursa Malaysia. The 9th Invest Malaysia capital market conference was organised by Bursa Malaysia in partnership with Maybank Kim Eng. Prime Minister Dato Sri Mohd Najib Tun Razak officiated the conference with his Keynote Address where he emphasised several key initiatives to further develop the capital market. These include the rollout of an online trading platform by 2014 for unlisted securities called myulm. This new trading platform is an initiative already underway to promote greater inclusiveness of financing and ensure better access to capital for start-ups, aspiring entrepreneurs and small-to-medium-sized entities. A further highlight of this year s conference was a landmark presentation by Jim Rogers, who identified specific areas of the Malaysian economy set to benefit from ASEAN s rise. BursaBytes 1
MARKET HIGHLIGHTS IMKL 2013 showcased 52 Malaysian multinational champions across diverse sectors that validated Malaysia s position as ASEAN s Multinational Marketplace. Additionally, 8 companies from other ASEAN countries were invited to present at IMKL 2013. More than 2,000 capital market players were in attendance this year, including global fund managers, top and senior executives of listed companies and key capital market government officials. Panel Discussion entitled ASEANised Corporate Malaysia: Primed for AEC 2015. L to R: En Johan Merican, CEO, Talent Corporation Malaysia, Tan Sri Shahril Shamsuddin, President & Group CEO, SapuraKencana Petroleum, Dato Tajuddin Atan, CEO, Bursa Malaysia, Tengku Dato Zafrul, CEO, Maybank Investment Bank, Moderator: PK Basu. Jim Rogers shares a light moment with the audience during his presentation ASEANs Rise: Following the Money Trail. Full house at the Grand Ballroom in Shangri-La Hotel. 2 BursaBytes
MARKET HIGHLIGHTS DATIN PADUKA SERI ROSMAH OFFICIATES THE 2013 GLOBAL SUMMIT OF WOMEN MARKET CEREMONY & BOOK LAUNCH AT BURSA MALAYSIA Datin Paduka Seri Hjh. Rosmah Mansor kicked off the pre-event to the 2013 Global Summit of Women (2013GSW) on 5 June with a symbolic and resounding reverberation of the gong that also represents the opening of trading sessions at Bursa Malaysia. Themed Women: Creating New Economies, Malaysia hosted the international gathering of women for the first time after winning the bid in 2011. Jointly organised with collaboration from the Global Summit of Women International, the Ministry of International Trade and Industry (MITI) and the Ministry of Women, Family and Community Development, the highly regarded annual gathering features prominent women leaders in governments, business and the corporate world from more than 70 countries, converge to share their aspirations and inspirations, to learn from each other and to propel the progress of women towards improving their economic status and enhancing the community. Delegates of the Women s Summit open the afternoon trading session at Bursa Malaysia with the ceremonial sound of the gong. Datin Paduka Seri Rosmah Mansor, the Chairperson of 2013GSW said, I am pleased that Malaysia has been given the opportunity to host this year s 2013GSW. This prestigious event provides a platform for women from all over the world to connect, share experiences and exchange ideas. Through networking, women can expand their horizons and continue to push their boundaries. Datin Paduka Seri Rosmah Mansor also took the opportunity to launch a coffee table book which features a compilation of 30 stories titled Successful Women Entrepreneurs. Tun Mohamed Dzaiddin Haji Abdullah, the Chairman of Bursa Malaysia Berhad said, The impact and contribution of women in Malaysia that have made an impact to the economy is captured in part of the book. Here at Bursa Malaysia, half of my management committee are women and the same proportion applies to the workforce of the company. These are encouraging but I believe there is still tremendous opportunity for Malaysia to raise that bar and be the nexus of growth and change. The 2013GSW event was held on 6 to 8 June at the Shangri-La Hotel Kuala Lumpur. BursaBytes 3
MARKET HIGHLIGHTS Datin Paduka Seri Rosmah Mansor delivering her Keynote Address. Launching ceremony for the book entitled Successful Women Entrepreneurs. L to R: Datuk Dr. Rebecca Fatima Sta Maria, Seceretary General, Ministry of International Trade and Industry (MITI), Datuk Rohani Bt Haji Abdul Karim, Ministry of Women, Family and Community Development, Datin Paduka Seri Rosmah Mansor, Chairperson of GSW 2013, Ms. Irene Natividad, President, GlobeWomen Inc., Tun Mohamed Daziddin Haji Abdullah, Chairman, Bursa Malaysia. BURSA MALAYSIA INTRODUCES GREEN LANE POLICY TO ENHANCE EFFICIENCY OF DOING BUSINESS FOR EQUITIES BROKERS On 5 April 2013, Bursa Malaysia introduced the Green Lane Policy where eligible equities brokers can commence their activities with only a notification process to Bursa Malaysia. The new policy came into effect on 2 May 2013. The policy shortens the time to market for equities brokers to commence their new activities which includes the opening of new branches or Electronic Access facilities, the provision of margin financing and the commencement of proprietary trading. This is part of the initiative by the Exchange to enhance the efficiency of doing business for equity brokers as well as to encourage greater self-regulation. Equities brokers which have met the criteria of familiarity, supervisory controls and displayed high standards of business conduct will be eligible to adopt the policy. This will encourage equities brokers to enhance their self regulation so as to avail themselves of the incentives under the Green Lane Policy. For more information on the Green Lane Policy, please visit http://www.bursamalaysia.com/market/regulation/rules/bursa-malaysia-rules/securities/rules-of-bursa-malaysia-securities 4 BursaBytes
MARKET HIGHLIGHTS BURSA MALAYSIA DERIVATIVES BRANCHING INITIATIVE TAKES OFF This quarter, Bursa Malaysia Derivatives branching initiative took off with the establishment of the first futures-only branch office in Johor Baru by Phillip Futures Sdn Bhd, on 18 April. A second branch was also opened recently by Philip Futures in Skudai, Johor on 6 July. This initiative was established to enable futures brokers, particularly the standalone brokers (futures brokers who are not investment banks, universal brokers or 1+1 brokers), to expand their business reach by setting up branch offices and trading kiosks in various locations in Malaysia apart from their existing principal office. Futures brokers will be able to better serve their existing clients and to provide more access points to attract new clients to trade on Bursa Malaysia, thus, paving the way for greater retail participation in the derivatives market. The branching initiative has been realised following its implementation on 3 December 2012, which enabled futures brokers to establish branch offices and trading kiosks anywhere in Malaysia. Opening ceremony of Phillip Futures s 2nd branch office in Taman Sutera Utama, Skudai, Johor on 6 July 2013. BursaBytes 5
REGULATION MARKET SURVEILLANCE S A MORNING WITH DERIVATIVES SURVEILLANCE In line with the Exchange s efforts to promote effective cooperation with market participants through effective communication and engagement, Bursa Malaysia held a session entitled A Morning with Derivatives Surveillance with 29 compliance officers and risk managers from Trading Participants and Associate Participants on 2 May 2013. The session was aimed to provide a better insight into derivatives surveillance, outlining the roles and responsibilities of Bursa Malaysia s Market Surveillance Division and the approaches it uses. There were discussions on case studies from past cases and investigations which ensured an interactive roundtable amongst all participants. Following the session, there was positive feedback from participants stating that the session will enable them to be more efficient and effective in their monitoring and supervision functions. Market Surveillance continues to hold ongoing engagement with market participants, and also aims to hold more strategic engagements with market participants in the future. Kuldip Singh, Vice President, Derivatives Surveillance from Bursa Malaysia presenting at the engagement session with trading participants. BURSA MALAYSIA INVITES COMMENTS ON PROPOSALS IN RELATION TO THE REVIEW OF TIMEFRAME FOR ISSUANCE OF FINANCIAL STATEMENTS AND ANNUAL REPORTS On 31 May, Bursa Malaysia published a paper seeking public feedback on proposals in relation to the review of timeframe for issuance of financial statements and annual reports. The proposals entail amendments to the Main Market and ACE Market Listing Requirements (collectively referred to as the LR). The consultation paper, among others, seeks to solicit feedback and comments on the proposal to shorten the current timeframe allowed for the issuance of annual reports from 6 months to 4 months from the close of the financial year. Bursa Malaysia believes that this proposal would ensure investors receive a continuous flow of financial information in a timely manner. The proposals in the consultation paper are made following a review of the timeframe for issuance of financial statements and annual reports undertaken by a taskforce established pursuant to the recommendation in the Corporate Governance Blueprint 2011. The taskforce is spearheaded by Bursa Malaysia and comprises representatives from the Securities Commission, the Audit Oversight Board, selected industry associations and listed corporations. 6 BursaBytes
SECURITIES SECURITIES MARKET SNAPSHOT 2Q 2013 Indices 2Q 2013 1Q 2013 FTSE 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 1,773.54 12,080.71 12,304.91 4,684.50 17,123.63 17,724.71 19,458.21 13,357.33 12,294.50 1,671.63 11,257.44 11,420.49 4,008.34 16,177.08 17,859.52 19,196.44 12,361.87 11,357.06 Market Highlights Units 2Q 2013 1Q 2013 Market Velocity (Quarterly Average) % 36.8 28.3 Market Capitalisation (as at end of quarter) RM bil 1,599 1,472 Total Trading Volume (OMT + DBT) bil 108 62 Trading Volume (OMT) bil 104 58 Average Trading Volume (OMT) bil 1.7 1.0 Total Trading Value (OMT + DBT) RM bil 150 100 Trading Value (OMT) RM bil 145 95 Average Trading Value (OMT) RM bil 2.3 1.6 No. of Trading Days day 63 58 No. of PLCs counter 910 915 No. of Listed REITs counter 17 16 No. of Listed Structured Warrants counter 443 497 New Listings - IPOs (Including REITs) counter 5 2 New Listings - Structured Warrants counter 68 122 No. of Delisted Companies counter 9 8 Total Funds Mobilised RM bil 8.0 2.4 No. of Rights and Bonus Issues unit 14 8 No. of New CDS Accounts Opened account 57,892 26,787 FOREIGN OWNERSHIP BASED ON MARKET VALUE 23.3% 23.9% 23.5% 23.6% 23.7% 23.7% 24.0% 24.1% 24.3% 24.8% 25.2% 24.7% 18.1% 18.1% 21.2% 21.6% 24.2% 26.2% 21.3% 20.4% 21.9% 22.7% 23.9% Jul- 12 Aug- 12 Sep- 12 Oct- 12 Nov- 12 Dec- 12 Jan- 13 Feb- 13 As at month end Mar- 13 Apr- 13 May- 13 Jun- 13 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 As at year end BursaBytes 7
SECURITIES FBMKLCI 1,850.00 1,800.00 1,750.00 1,700.00 1,650.00 1,600.00 1,550.00 DAILY MARKET TREND: FBMKLCI AND MARKET VELOCITY 90% 80% 70% 60% 50% 40% 30% 20% 10% Market Velocity 1,500.00 Jul- 12 Aug- 12 Sep- 12 Oct- 12 Nov- 12 Dec- 12 Jan- 13 Feb- 13 Mar- 13 Apr- 13 May- 13 Jun- 13 0% FBMKLCI Velocity DAILY MARKET TREND: MARKET CAPITALISATION, TOTAL VOLUME AND VALUE 6.0 1,650 Volume (Bil) & Value (RM bil) 5.0 4.0 3.0 2.0 1.0 0.0 Jul- 12 Aug- 12 Sep- 12 Oct- 12 Nov- 12 Dec- 12 Jan- 13 Feb- 13 Mar- 13 Apr- 13 May- 13 Jun- 13 1,600 1,550 1,500 1,450 1,400 1,350 1,300 1,250 1,200 Ma#$e& (a)i&ali,a-o/ (bil) Total Val Total Vol MDt EapFtalFGaHon MORE 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 8 BursaBytes
DERIVATIVES DERIVATIVES MARKET SNAPSHOT 2Q 2013 1,200,000 Volume 1,000,000 800,000 600,000 400,000 200,000 0 250,000 200,000 150,000 100,000 50,000 0 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 KLCI Futures Crude Palm Oil Futures Exchange Total Open Interest KLCI Futures Crude Palm Oil Futures Exchange Total Margin Rates Combined Commodity KLI CPO 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 14/5/2013 4,000 7-350 300 50 Previous 9/5/13 5,000 7-350 300 50 New 14/5/2013 5,000 5 250-1,000 50 Previous 9/5/13 6,000 6 250-1,000 50 MORE INFORMATION For 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. BursaBytes 9