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DENIAL OF MERGER & ACQUISITION (M&A) TALKS WITH NASDAQ.
BackApr 13, 2006
13 Apr 2006
DENIAL OF MERGER & ACQUISITION (M&A) TALKS WITH NASDAQ
Bursa Malaysia Berhad ("Bursa Malaysia") would like to clarify that in light of recent media articles on consolidation of exchanges, it is not in discussion with NASDAQ or any other exchange on any merger and acquisition proposal.
Bursa Malaysia also noted the recent movement of its share price which has increased to RM6.35 per share on 13 April 2006 from RM4.70 per share on 17 March 2006. This marked an increase of approximately 35.1%.
Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia said, "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."& lt; /p>
Following the announcement, significant improvements on trading activity in the overall market are observed:
- 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.