Chief Executive Officer's Message

OUR MARKET

As with all other markets globally, Malaysia has been adversely impacted by the financial circumstances of 2008. The effect on our securities market resulted in our daily average trading value decreasing by 46%. Total market capitalisation declined by 40%. Poor market sentiment and weak performance was reflected in retail participation levels, which dropped to 24% in 2008, against 37% in 2007. However, foreign participation took up some of the slack, rising to 42% in 2008, compared with 37% the previous year.

Our derivatives market provided a bright spot. Market volatility actually drove activity, and there was only a marginal 1% decline in trading volumes.

One of the high points for derivatives came when Bursa Malaysia was named as the Exchange of the Year (Asia Pacific) at the FOW Awards 2008 held in London, in recognition of our concerted efforts to promote the Malaysian derivatives market to international investors. The award also recognised the stellar performance of our main product, FCPO, which had recorded 159% growth over 3 years (2005-2008).

Away from our main markets, the electronic trading of bonds on our ETP saw some initial activity, but performed in a lackluster manner thereafter. On the LFX, there were two new listings in 2008, bringing the total listings to 46 with a market capitalisation of USD15.6 billion.