News
Bursa Malaysia Berhad ("Bursa Malaysia" or "Exchange")
BackApr 13, 2006
| General Announcement Reference No BM-060413-59088 |
| Company Name | : | BURSA MALAYSIA BERHAD |
| Stock Name | : | BURSA |
| Date Announced | : | 13/04/2006 |
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| Type | : | Announcement |
| Subject | : | Bursa Malaysia Berhad ("Bursa Malaysia" or "Exchange") |
Contents :
Bursa Malaysia would like to clarify that in light of a recent media article on consolidation of exchanges, it is not in discussion with Nasdaq or any other exchange on any merger and acquisition proposal.
Bursa Malaysia has also noted that its share price has increased from RM4.70 per share on 17 March 2006 to RM6.35 per share on 13 April 2006, an increase of approximately 35.1%.
We believe the increase in share price is attributable to improved investor sentiment arising from the government's announcements on 23 March 2006 on further developments for the Malaysian capital market, particularly, the reintroduction of regulated short selling and securities borrowing and lending. We noted that trading activity in the overall market has improved significantly since the announcement whereby:
? Retail participation in the market increased from 22.4% in December 2005 to 34.4% in March 2006;
? Total trading value increased 24.3% from a daily average of RM892.7 million from 1 January 2006 to 17 March 2006 to a daily average of RM1,109.8 million from 18 March 2006 to 12 April 2006. Along with this, Bursa Malaysia also recorded a 51.8% increase total trading volume from a daily average of 749.7 million shares from 1 January 2006 to 17 March 2006 to a daily average of 1,137.8 million shares from 18 March 2006 to 12 April 2006;
? Trading in FKLI contracts also increased 19.5% from a daily average of 5,164 contracts with a daily average notional value of RM236.4 million from 1 January 2006 to 17 March 2006 to a daily average of number of 6,171 contracts with a daily average notional value of RM286.7 million from 18 March 2006 to 12 April 2006;
? The Composite Index has also increased from 922.62 on 17 March 2006 to 941.88 on 12 April 2006.
Whilst the trading activity has shown increases as stated above, we wish to highlight that there is no certainty the current trading volume and value will continue to grow, or that the existing high volume is sustainable. Nevertheless, Bursa Malaysia is committed and will continue to enhance the attractiveness and competitiveness of Bursa Malaysia as a market, including identifying and implementing initiatives to boost velocity.
This announcement is dated 13 April 2006.