BURSA MALAYSIA BERHAD CIMB Corporate Day, London Dato Yusli Mohamed Yusoff,, CEO 2 February 2007 1
BURSA MALAYSIA TODAY IS A Must Have in Investment Portfolios 2
Market Velocity on the Increase Quarterly Velocity, Daily Average Volume & Value 39% 2100 56% 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 509 32% 954 417 23% 652 430 26% 698 20% 304 578 30% 779 910 932 38% 1107 27% 1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006 3Q2006 4Q2006 YTD 30 Jan 07 574 782 935 1283 1229 60% 50% 40% 30% 20% 10% 0% Daily Average Volume (million units) Daily Average Value (million RM) Turnover Velocity 3
Foreign Investors Activity Significant Local & Foreign Trading Participation 1998 to 2006 27% 17% 22% 29% 32% 24% 31% 37% 34% 73% 83% 78% 71% 68% 76% 69% 63% 66% 1998 1999 2000 2001 2002 2003 2004 2005 2006 Local Investors Foreign Investors 4
Foreign Ownership high at 24.2% 1 Foreigners Malaysian and Foreign Shareholdings as at 31 December 2006 Items Total Shareholdings (Units-Billion) December 2006 Note : Nominees Asing reflect shares owned by foreigners but held via Authorised Nominee Companies incorporated in Malaysia. % Total Market Value (RM-Billion) Direct Holdings 15.7 4.41 34.3 4.04 Nominees Asing* 42.2 11.84 171.4 20.19 2 Malaysians 298.5 83.75 643.2 75.77 3 Total securities immobilised in CDS 356.4 100.00 848.9 100.00 Foreign Shareholdings by Nationality for Selected Countries as at 31 December 2006 % United Kingdom 3.97% Singapore 10.36% Hong Kong 2.42% United States of America 0.35% Others 10.02% Nominees Asing 72.88% 5
Offers one of the highest dividend yields Regional Comparison Dividend Yield Thailand (SET) 4.82% Malaysia (KLCI) Australia (AS30) 3.49% 3.45% 3.48% Taiwan (TWSE) 3.39% Singapore (STI) 3.29% Hong Kong (HSI) 2.89% Philippines (PCOMP) 2.21% Indonesia (JCI) 1.99% China (Shanghai-A) 0.99% South Korea (Kospi) 0.57% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% Dividend Yield Source: Bloomberg, Dividend yield for main regional indices as at 29 December 2006 6
Our recent performance results from Culmination of progressive efforts at liberalizing the capital market & a favorable Malaysian Economic backdrop Reducing regulatory/policy constraints Infrastructural improvements New and Innovative Products Additional Market Initiatives 7
Current momentum favorable Strong fundamentals Active M&A GLC reforms showing results Liberalisation effort Surge in foreign funds 8
A Favourable Malaysian Economy Backdrop Real growth projected at about 6% Conducive Domestic interest rates for economic activities Manageable Inflation The Strengthening Ringgit Ninth Malaysia Plan charts the expansion path of the local economy Visit Malaysia Year 2007 : Increasing tourist arrivals Strong global demand for green products such as bio-diesel 9
Increased Corporate Activity creates active trading RM bn BCHB acquires Southern Bank 6.7 MMC Corp acquires Malakoff s assets and liabilities Daikin acquires OYL Industries ANZ acquires stake in AMMB PNB mega plantation merger Synergy Drive PPB Group plantation consolidation exercise under Wilmar International Genting Group wins SGD5.2bn Sentosa casino license 9.3 7.6 1.3 31.4 2.3 11.9 More active approach to globalisation and foreign investment interest. 10
GLC reforms significant progress Increase free float Stock price performance : Based on 44 GLCs, almost 50% have done better than the market over a 30 month period from May 04, with total value creation of RM76 bn (AmResearch) Total Shareholders Return : 20 top GLC are in line with the broader market (Khazanah) Strong performers : Bumi Commerce, Tenaga Significant improvements : MAS, Telekom Even Proton opening up to foreign partnerships Winds of change : changing mindset and culture 11
Liberalisation Efforts Re-introduction of regulated short selling (RSS) and stock borrowing & lending (SBL) FTSE-Bursa Malaysia Indices: Launch of free float and liquidity tested indices with FTSE. Grow derivatives products i.e. USD FCPO & Tradable FBM Shariah Index Omnibus CDS account` Relaxing of capital control and ringgit depeg Accelerate tax restructuring : Reits (15% local, 20% foreign) : Corporate tax (27% - 2007, 26% - 2008) Liberalisation of foreign Listing Liberalisation of banks investment in shares 12
MOVING FORWARD Capitalizing on Opportunities 13
Opportunities On a Broad Perspective Enhance liquidity to ensure relevance Create new investors base, stimulate existing capital market investors Mobilise intermediaries via access, education and new products Unlock unutilised domestic liquidity and convert excess capital into portfolio investment. 14
Opportunities Capitalising on Domestic Latent Potential Malaysia has one of the highest savings rate in the region at about 37% of Gross National Product. Only 9% of CDS depositors of 2.3 million is active 15
Bursa is committed towards attractiveness of our market place Increase Depth of Products and Services CMDF Bursa Research Scheme Bursa Station Real Estate Investment Trusts Exchange Traded Funds FTSE- Bursa indices Single Stock Futures Structured Warrants ASEAN Index Products Foreign Listings/Dual Listings Internationalise CPO prices Improve Infrastructure & Distribution Channels Admission of 5 foreign brokers (UBS, CLSA, CSFB, Macquarie, JP Morgan) Admission of 3 foreign fund managers (Aberdeen, Nomura, BNP Paribas) Proprietary Day Trading Bursa Trade (Common Trading Platform) Direct Market Access RSS/SBL 16
THANK YOU 17