15
www.bursamalaysia.com Since coming on board as the CEO of Bursa Malaysia in April 2011, I have worked closely with the team to crystalise the vision I have for Bursa Malaysia which is to create, deliver and capture value for the capital market. My mandate as the chief executive officer of the Exchange is to enhance the capital market’s position as a destination of choice for listings and investments. The goal is to make the capital market more attractive and vibrant. As of 1 July 2011, we have seen 18 new listings on our markets. This is almost two thirds the total number of listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the year. This demonstrates that the Malaysian capital market still provides issuers a sound platform for fund-raising activities. Notwithstanding the companies that are eagerly awaiting to list, we also have an attractive stable of listed companies that show sound earnings and growth plans, some of which have been featured at invest conferences such as Invest Malaysia in Kuala Lumpur, Market Chat and Talk Futures retail roadshows, and Malaysia GEMS in Singapore. We have also, very recently, been elevated to Advanced Emerging market status from Secondary Emerging market status in the FTSE Global Equity Index Series, which took effect on 20 June 2011. This new status will raise the country’s profile further as FTSE is a major indexing group. Malaysia’s weightage on the MSCI Emerging Market’s and MSCI All-Country Asia ex-Japan indices has also risen in June. As fund managers re-evaluate their portfolios for the second half of the year, I believe that Malaysia will be able to attract more investments from global investors. At the same time, we are working towards ensuring that our market exhibits strong corporate governance, which is underscored by sound investor protection. This is a key criteria in attracting global funds. Bursa Malaysia is highly committed towards ensuring that our market remains a market of integrity and quality, with investor protection being the main priority. We put strong emphasis on the good practice of corporate governance and this is demonstrated in our regulatory approach which focuses on regulating for sustainable market growth. In order to galvanise more participation in both the securities and derivatives markets, Bursa Malaysia welcomes the effort to allow securities remisiers and dealers who have the necessary experience to fast-track into dual licensing for the derivatives market. This would allow cross-selling of opportunities in both the securities and derivatives market, building the intermediaries segment and consequentially, growing the derivatives market further. All these initiatives and developments reiterate our commitment to spur the vibrancy of the Malaysian capital market. Our fundamentals are intact and our companies continue to provide positive returns for investors, underscored by a dynamic economy. I believe there has never been a better time to invest and be part of this exciting Emerging Market. Issue 2 Vol 3 JUL 2011 Happenings and updates from Bursa Malaysia HIGHLIGHTS 1 Market Highlights Invest Malaysia 2011 Invest Malaysia New York Malaysia now on FTSE Advanced Emerging Market Malaysia GEMS 2011 Derivatives News 6 Corporate Access In terview with CEO of Axis REIT MIRA Malaysia Investor Relations Awards 2011 10 Sustainability Programme Raising the CSR Bar in Malaysia Message From The CEO If you have any feedback or comments, please email: [email protected] Dato’ Tajuddin Atan

1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

w w w . b u r s a m a l a y s i a . c o m

Since coming on board as the CEO of Bursa Malaysia in April 2011, I have worked closely with the team to crystalise the vision I have for Bursa Malaysia which is to create, deliver and capture value for the capital market. My mandate as the chief executive officer of the Exchange is to enhance the capital market’s position as a destination of choice for listings and investments. The goal is to make the capital market more attractive and vibrant.

As of 1 July 2011, we have seen 18 new listings on our markets. This is almost two thirds the total number of listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the year. This demonstrates that the Malaysian capital market still provides issuers a sound platform for fund-raising activities. Notwithstanding the companies that are eagerly awaiting to list, we also have an attractive stable of listed companies that show sound earnings and growth plans, some of which have been featured at invest conferences such as Invest Malaysia in Kuala Lumpur, Market Chat and Talk Futures retail roadshows, and Malaysia GEMS in Singapore.

We have also, very recently, been elevated to Advanced Emerging market status from Secondary Emerging market status in the FTSE Global Equity Index Series, which took effect on 20 June 2011. This new status will raise the country’s profile further as FTSE is a major indexing group. Malaysia’s weightage on the MSCI Emerging Market’s and MSCI All-Country Asia ex-Japan indices has also risen in June. As fund managers re-evaluate their portfolios for the second half of the year, I believe that Malaysia will be able to attract more investments from global investors.

At the same time, we are working towards ensuring that our market exhibits strong corporate governance, which is underscored by sound investor protection. This is a key criteria in attracting global funds. Bursa Malaysia is highly committed towards ensuring that our market remains a market of integrity and quality, with investor protection being the main priority. We put strong emphasis on the good practice of corporate governance and this is demonstrated in our regulatory approach which focuses on regulating for sustainable market growth.

In order to galvanise more participation in both the securities and derivatives markets, Bursa Malaysia welcomes the effort to allow securities remisiers and dealers who have the necessary experience to fast-track into dual licensing for the derivatives market. This would allow cross-selling of opportunities in both the securities and derivatives market, building the intermediaries segment and consequentially, growing the derivatives market further.

All these initiatives and developments reiterate our commitment to spur the vibrancy of the Malaysian capital market. Our fundamentals are intact and our companies continue to provide positive returns for investors, underscored by a dynamic economy. I believe there has never been a better time to invest and be part of this exciting Emerging Market.

Issue 2 Vol 3 JUL 2011

Happenings and updates from Bursa Malaysia

HIGHLIGHTS1 Market Highl ights

Invest Malaysia 2011•

Invest Malaysia New York•

Malaysia now on FTSE Advanced •Emerging Market

Malaysia GEMS 2011•

Derivatives News•

6 Corporate Access

In• terview with CEO of Axis REIT

MIRA Malaysia Investor Relations Awards 2011•

10 Sustainabi l i ty ProgrammeRaising the CSR Bar in Malaysia•

Message From The CEO

If you have any feedback or comments, please email: [email protected]

Dato’ Tajuddin Atan

Page 2: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

BursaBytes 1

MARKET HIGHLIGHTS

Invest Malaysia 2011 Kuala Lumpur Conference-Redefining Investors’ Perspective on Malaysia

“Capital Market Masterplan Two

(CMP2), the successor of CMP1

that was launched a decade

ago, aims to further unlock the

potential of capital market”

Datuk Seri Mohd Najib Tun Razak Prime Minister of Malaysia.

The seventh Invest Malaysia Kuala Lumpur was held on 12-13 April. Amid setting a new tone for Invest Malaysia to positively change investors’ perspective on Malaysia, the organisers of the conference, Bursa Malaysia, Maybank Investment Bank and Malaysian Industrial Development Authority (MIDA), were delighted with the record number of nearly 875 fund managers representing Assets Under Management (AUM) of over USD8 trillion. This included, for the first-time, the China Qualified Domestic Institutional Investor (QDII) fund managers. Total number of delegates in attendance was 2,266.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia Berhad said, “We are pleased with the record attendance and turnout of funds represented at Invest Malaysia as this sends a very strong signal for the growth of Malaysia’s capital market. The feedback we received from fund managers and investors were very encouraging, as they recognised the Government’s efforts in bringing about reform and transformation as catalysts for growth.”

“We are also delighted with the investment interest received from fund managers and especially those from the Republic of China, who are here for the first-time since Malaysia was accorded QDII status in June 2010.”

Prime Minister Datuk Seri Mohd Najib Tun Razak delivering his keynote address at the conference.

Page 3: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

2 BursaBytes

Invest Malaysia attendees listening to a presentation at the Grand Ballroom, Shangri-La Hotel.

MARKET HIGHLIGHTS

Over 450 meeting requests were filled via private business meetings with foreign fund managers over the two days with a focus on facilitating investment opportunities. 31 Malaysian companies were profiled with a market value of RM540 billion representing 42% of the total market capitalisation of Bursa Malaysia, including corporates from the oil & gas, property, services, airline and infrastructure sectors.

Invest Malaysia 2011 Kuala Lumpur also saw the announcement by Xinhua to make Malaysia their ASEAN hub and the launch of their Xinhua08 Malaysia webpage as a window for Chinese readers to receive up-to-date business and financial news on Malaysia and ASEAN.

The Prime Minister, Dato’ Seri Mohd Najib Tun Razak, set the tone for the conference by clarifying the path that Malaysia’s transformational initiatives are taking to reach the nation’s GNI goals. Notable announcements made from the conference include the listing of Felda’s sugar refinery arm, the launch of the Capital Market Masterplan 2 (CMP2), TalentCorp programmes for maintaining top foreign talent and luring back top Malaysian talent overseas. These developments were very well received by fund managers as definitive steps towards transforming the country to a high income economy.

Invest Malaysia 2011: Powering Global Excellence

Page 4: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

BursaBytes 3

INVEST MALAYSIA NEW YORK

Invest Malaysia New York (IMNY) was held on 17-18 May 2011, in conjunction with the Prime Minister’s visit to New York. The event garnered a good turnout with 87 US investors attending.

IMNY was held with the aim of attracting new investors and key influencers in the market, and promoting the “Change Perspective” theme in Malaysia’s transformation story.

The event was jointly organised by Bursa Malaysia, NYSE Euronext, J.P. Morgan, CIMB Investment Bank, Maybank Investment Bank and the Malaysian Industrial Development Authority (MIDA).

On the first day of IMNY, the Prime Minister delivered his speech to an audience of about 300 people and shared 10 reasons why US investors should invest in Malaysia. The first day of the event was held at the NYSE Euronext.

The event also saw an engaging panel discussion, featuring MIDA, the Securities Commission and Khazanah Nasional on Malaysia’s Economic Transformation Programme and its project updates. Ten renowned Malaysian corporates were showcased in one-on-one or small group meetings over the two days, and echoed the “Change Perspective” theme in Malaysia’s transformation story.

MARKET HIGHLIGHTS

MALAYSIA NOW ON FTSE ADVANCED EMERGING MARKET

Bursa Malaysia was elevated to Advanced Emerging market status from Secondary Emerging market status in the FTSE Global Equity Index Series on 20 June 2011.

Global index provider FTSE Group first announced Malaysia’s progression to the FTSE Advanced Emerging Market in September last year after the country met the “Quality of Markets Assessment” criteria for the category. Malaysia now joins Brazil, Czech Republic, Hungary, Mexico, Poland, South Africa, Taiwan and Turkey in the Advanced Emerging market category.

Malaysia joined the FTSE Watch List for possible inclusion in the Advanced Emerging market status in 2009 when FTSE announced the results of its Country Classification Annual Review in September 2009.

Please refer to FTSE Country Classification updates on FTSE’s website.

MALAYSIA GEMS 2011

Bursa Malaysia collaborated with ShareInvestor, the financial internet media and technology company and a subsidiary of Singapore Press Holdings (SPH), and SPH’s business daily, The Business Times, to organise Malaysia GEMS 2011. The event was held on Saturday, 18 June 2011 at the DBS Auditorium in Singapore.

Malaysia GEMS is a cross-border investor roadshow that showcases the investment merits of Malaysia’s public-listed companies. This year, senior management from eight companies in industries ranging from oil and gas, construction and property development to healthcare made presentations on their companies’ investment prospects.

During the one-day event, analysts from Maybank Investment Bank and CIMB Investment Bank discussed the prospects of Malaysia’s economy, quality investment recommendations and the industries linked to Malaysia’s economic transformation programmes. This event follows from the success of last year’s Malaysia GEMS 2010 which attracted more than 450 participants.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said, “The past year and a half has been an exciting one for Malaysia. The de-velopment from the New Economic Model and the Economic Transformation Programme will see a multiplier effect in several key sectors such as construction, property, commodity, and financial services, among others. Through Malaysia GEMS 2011, investors in Singapore will hear first-hand news/updates from selected companies about their vision and long-term growth plans. These are some of the companies that are in sectors that will benefit from Malaysia’s transformation programme.”

Page 5: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

4 BursaBytes

MARKET HIGHLIGHTS

DERIVATIVES SALES FORCE EXPECTED TO DOUBLE WITHIN A YEAR WITH FAST TRACK PROGRAMME FOR DUAL LICENSEES

This quarter saw an exciting development within the derivatives ecosystem. The dual licensing fast track programme was announced by our Prime Minister at the renowned Invest Malaysia 2011 conference in April 2011. Securities brokers (dealer representatives) with at least 10 years experience can now trade futures contracts without the need to undertake a separate futures broker licensing examination. There are potentially 2,500 dealer representatives who are qualified for this fast track programme.

Interested securities brokers can join the fast track programme which is a four-day programme jointly organised by the Securities Industry Development Corporation (SIDC) and Bursa Malaysia Derivatives (BMD). The programme was introduced in the Klang Valley in June 2011 and will expand to other locations in the future.

Dealer representatives will benefit from having a dual license especially since they are already trading on the FBM KLCI stocks. Now, they will be able to add FKLI Futures and Single Stock Futures in their clients’ portfolio and capitalise on the hedging and arbitraging opportunities available in the derivatives market.

There are currently 583 dual licensees and we expect to double this number to 1,000 within a year. To-date, seats for the fast track programme are already fully booked until December 2011. Interested dealers can obtain further information from the SIDC website.

DERIVATIVES ENJOY RECORD VOLUMES AND OPEN INTEREST 2011 has been a record breaking year for BMD contracts, surpassing our previous and current year highs in terms of daily and monthly contracts as well as open interest. The migration of BMD’s products onto CME’s Globex® Trading Platform has resulted in enhanced accessibility and visibility, attracting new clients and increasing volume base for existing ones.

Our futures accounts have grown from 35,000 in September 2010 to 40,470 accounts in June 2011, a 16% increase. Our Average Daily Volume (ADV) has grown significantly by 39% this year (YTD June 2011) to an ADV of 34,478 contracts June 2011 compared to an ADV of 24,818 contracts in 2010.

Our latest record highs are as follows:

Description 5 July 2011 31 March 2011 24 February 2011FCPO open Interest High 125,009 - -

FCPO Monthly High (Total Contracts) - 619,326 -

All Derivatives Monthly High (Total Contracts) - 856,791 -

FCPO Daily High (No. of Contracts) - - 48,704

All Derivatives Daily High (No. of Contracts) - - 74,014

The increase in open interest indicates sustained interest in FCPO contracts by market players, predominantly from Malaysia, US, Europe, as well as Singapore. The Exchange also noted an increase in participation of institutional traders to 42% in June 2011 following our migration onto the CME Globex® trading platform in September 2010, compared to 38% before the migration. Our categories of traders include Refiners, Hedge Funds and Food Processors from US, Europe and Singapore.

The overall increase in open interest, volumes and foreign participation augurs well for Malaysia. This is a positive signal and provides early signs of validation for the globalisation path that Malaysia has chosen for the derivatives industry.

Page 6: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

FOREIGN PLAYERS AND MARKETS

With a global trading infrastructure in place, we continue our search for foreign players and markets including foreign financial institutions, hedge funds, commodity funds, proprietary trading shops and algorithm traders to trade on BMD products.

In April 2011, BMD conducted a market awareness programme in four cities in China namely Shanghai, Beijing, Hangzhou and Guangzhou, which was well attended by the Dalian Commodity Exchange (DCE) broker members and end clients. This programme was supported by DCE, CME and OSK Investment Bank. We will continue to have close collaboration with DCE and the Chinese regulators to promote BMD and its products in China, to prepare for the possibility of opening of the Chinese markets to trade all global derivative products.

Another roadshow was also held with CME and our Trading Participants in Brewery London from 7-8 June 2011 at the International Derivatives Expo to promote BMD and its products.

VISIT TO CME The Chairman of Bursa Malaysia and Bursa Malaysia Derivatives (BMD), Tun Mohamed Dzaiddin Hj Abdullah and Dato’ Tajuddin Atan respectively, visited our strategic partner, the Chicago Mercantile Exchange (CME) on 20 May 2011.

At CME, both Tun Dzaiddin and Dato’ Tajuddin had an interesting session with Leo Melamed, Chairman Emeritus of CME Group, or better known as the ‘Father of Financial Futures’. Leo gave an insight on how CME markets operated during the crisis of October 1987. He shared that for every financial crisis that has taken place, no exchange traded derivative contract had ever defaulted.

At the Globex® Control Centre (GCC), the Bursa Malaysia delegation witnessed the uniqueness of the order matching of the Application Service Provider model being done thousands of miles away. They were comforted to see that the BMD trading at the GCC and technology operations at CME Technology Operations Control Centre were in the good hands of CME.

BursaBytes 5

MARKET HIGHLIGHTS

Representatives from BMD, CME, OSK Invesment Bank, Dalian Commodity Exchange and China International Futures Corporation Limited (Chinese FCM) at one of the roadshows in China.

Tun Mohamed Dzaiddin and Dato’ Tajuddin Atan (5th & 6th from left) visited Chicago Mercantile Exchange (CME) on 20 May 2011. The Executive Chairman of CME, Terrence Duffy (4th from left ) hosted a lunch in honour of this visit. Representatives from CME who were in attendance included Vice Chairman, Charles Carey (1st from left), Chief Executive Officer, Craig Donohue (3rd from right) and President, Phupinder Gill (4th from right ).

Page 7: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

INTERVIEW WITH GEORGE STEWART LABROOY, CHIEF EXECUTIVE OFFICER/EXECUTIVE DIRECTOR OF AXIS REIT MANAGERS BERHAD CONDUCTED BY MIRA

CORPORATE ACCESS

As the CEO of the company, what are the important attributes you look for in your staff? In your view, what motivate a person to excel?

I look for three things in the staff I employ:Attitude•Integrity•Ability•

People excel when they are given clear goals, given the tools to achieve them and are rewarded upon success. If they fail, they should be encouraged to pick themselves up and keep trying.

How would you describe your style of management?

I work with a flat management structure with a small team of key managers reporting to me. I am focussed on building a strong team, training them and sharing the company’s strategic direction and goals with both the senior and junior managers so that everyone knows what is happening in the organisation. Staff productivity is a key metric we measure in the way we do business and we invest in technology to ensure that all staff are increasing their productivity annually.

I abhor politics and keep an open door policy with all staff within the organisation. The more successful they are, the more successful the company becomes.

What is the most challenging aspect of being the CEO of the company and in your view, what skills/knowledge are important when faced with challenges?

Keeping our growth trajectory is challenging and very demanding. We have to be extremely proactive as an asset manager to ensure our buildings are well presented and that all tenants are happy and occupancy rate remains high.

Axis-REIT was the first Real Estate Investment Trust (“REIT”) to list on Bursa Malaysia Securities Berhad on 3 August 2005. On 11 December 2008, Axis-REIT was reclassified as an Islamic REIT.

The fund is the largest public-listed Office/Industrial REITs with 4,290,000 square feet of space under management spread over 27 properties and five asset classes. Its assets are well located, of high quality and well diversified in terms of tenants origin and businesses.

MIRA recently conducted an interview with George Stewart LaBrooy, Chief Executive Officer/Executive Director of Axis REIT Managers Berhad. Sharing his views on investor relations, LaBrooy said “We have always maintained a policy of continuous disclosure to our participating funds, fund managers and analysts. We hold regular one-on-one meetings and conference calls with the fund managers, analysts and unit-holders to disseminate information. This bodes well with our corporate culture of having an effective corporate governance framework.”

Malaysian Investor Relations Association Berhad (MIRA) is a company limited by guarantee established by Bursa Malaysia to promote the good practice of investor relations by public-listed companies.

BursaBytes 6

Below is an excerpt of the interview with George Stewart LaBrooy:

Page 8: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

IR Tracker

Company : Axis-REIT

Board : Main Market

Sector : REITS

Stock code : 5106

Stock name : Axreit

Financial year end : 31st December

Latest results release : 1st quarter ended 31 March 2011

IR Contact : Ms. Stephanie Ping

Head of Business Development & Investor Relations

Email : [email protected]

Website : www.axis-reit.com.my

Details correct as at 30 June 2011

For more information on MIRA, please contact Alex Lee at +603-20347491 or [email protected].

In addition, we have to be constantly looking into careful capital management of our finances and capital structure and maintaining a strong investor relations component in our business.

Lastly, getting the best people in the business to work for you is also a challenge. I have found that my engineering background has been very useful in my career as it teaches me to be analytical and at the same time, look for solutions that work. We fix things and manage crisis very well.

What is your golden rule of life?

“Treat others as you want to be treated”.

CORPORATE ACCESS

BursaBytes 7

Up close and personal with Mr. LaBrooy

Page 9: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

CORPORATE ACCESS

8 BursaBytes

MIRA MALAYSIA INVESTOR RELATIONS AWARDS 2011

The Malaysian Investor Relations Association (MIRA) plays an active role in developing and advancing Investor Relations (IR) among IR practitioners and public-listed companies in Malaysia.

In recognition of good practice of IR by individual IR professionals and companies listed on Bursa Malaysia, MIRA organised the first Malaysia Investor Relations Awards on 26 May 2011. Held at Shangri-La Hotel, Kuala Lumpur, the awards aimed to honour individuals and companies that led the way in the practice of IR. MIRA engaged Thomson Reuters Extel to commission the first Malaysia IR survey, which results were used as the basis for the awards. Among the guests present to grace the occasion were Tan Sri Zarinah Anwar, Chairman of Securities Commission Malaysia, Tun Dzaiddin Haji Abdullah, Chairman of Bursa Malaysia and Dato’ Tajuddin Atan, CEO of Bursa Malaysia.

A total of 16 awards under six main categories, “Best Company For IR”, “Best IR for an IPO in 2010”, “Best CEO for IR”, “Best CFO for IR”, “Best IR Professional ” and “Best IR Website” were presented at the inaugural Malaysia Investor Relations Awards 2011. The companies were polled under Large, Mid and Small Cap categories based on their market capitalisation, referenced against the basket of companies under the FTSE Bursa Malaysia Index Series.

The big winners of the day were CIMB Group Holdings Berhad (Large Cap), AirAsia Berhad (Mid Cap) and Kossan Rubber Industries Berhad (Small Cap). CIMB Group Holdings Berhad bagged four awards under the Large Cap category, namely “Best Company for IR”, “Best CEO for IR” by Dato’ Sri Nazir Razak, “Best IR Professional” by Steven Tan Chek Chye and “Best IR Website”.

AirAsia Berhad topped the Mid Cap category by bringing home the awards for “Best CEO for IR” by Dato’ Sri Dr. Tony Fernandes, “Best IR Professional” by Benyamin Ismail and “Best IR Website”. Under the Small Cap category, Kossan Rubber Industries Berhad won the award for “Best Company for IR” and “Best IR professional” by Edward Yip.

From left : Ms. Audrey Ho, Chairperson, MIRA, Tun Dzaiddin Haji Abdullah, Chairman, Bursa Malaysia Berhad, and the winners for Best Company for Investor Relations, Dato’ Sri Nazir Razak, Group Managing Director/CEO, CIMB Group Holdings Bhd, Raymond Yap Kok Weng, Executive Vice President, SP Setia Berhad and Dato’ KS Lim, Managing Director/Group CEO, Kossan Rubber Industries Berhad.

Page 10: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

CORPORATE ACCESS

9 BursaBytes

The following is the list of winners for MIRA Malaysia Investor Relations Awards 2011:-

BEST COMPANY FOR INVESTOR RELATIONS

Small Cap – Kossan Rubber Industries Berhad 1.

Mid Cap – SP Setia Berhad 2.

Large Cap – CIMB Group Holdings Berhad3.

BEST INVESTOR RELATIONS FOR AN IPO IN 2010

Joint winners:

Malaysian Marine and Heavy Engineering Holdings Berhad 1.

PETRONAS Chemicals Group Berhad2.

BEST CEO FOR INVESTOR RELATIONS Small Cap – Lim Chai Beng, CB Industrial Product Holding Berhad 1.

Mid Cap – Dato’ Sri Dr. Tony Fernandes, AirAsia Berhad2.

Large Cap – Dato’ Sri Nazir Razak, CIMB Group Holdings Berhad3.

BEST CFO FOR INVESTOR RELATIONS Small Cap – Mohamed Azman Shah Ishak, TH Plantations Berhad1.

Mid Cap – Lim Cheong Guan, Top Glove Corporation Berhad2.

Large Cap – Ashok Ramamurthy, AMMB Holdings Berhad3.

BEST INVESTOR RELATIONS PROFESSIONAL

Small Cap – Edward Yip, Kossan Rubber Industries Berhad1.

Mid Cap – Benyamin Ismail, Air Asia Berhad2.

Large Cap – Steven Tan Chek Chye, CIMB Group Holdings Berhad3.

BEST INVESTOR RELATIONS WEBSITE Small Cap – Evergreen Fibreboard Berhad 1.

Mid Cap – AirAsia Berhad 2.

Large Cap – CIMB Group Holdings Berhad3.

For more information on MIRA Malaysia Investor Relations Awards 2011, please go to www.mira.com.my.

Page 11: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

SUSTAINABILITY PROGRAMME

10 BursaBytes

RAISING THE CSR BAR IN MALAYSIAby CSR ASIA

The role and visibility of corporate social responsibility (CSR) has grown steadily among public-listed companies (PLCs) in Malaysia. Over the years, Bursa Malaysia has played an important role in this with the launch of the CSR framework and mandatory requirement for companies to report on their CSR performance. Both initiatives have resulted in higher quality CSR and disclosure by Malaysian PLCs.

In 2010, Bursa Malaysia launched the Business Sustainability Programme to encourage directors to embed sustainable business practices in their operations. In 2012, Bursa Malaysia will launch an Environment, Social and Governance (ESG) index.

For Malaysian PLCs preparing for ESG Index, here are some tips to consider.

Driven from the top: One clear sign that CSR is embedded in a company is that the highest decision making body understands the business case for CSR. The domino effect of integrating CSR at an organisation’s highest level will change the way an entire organisation operates, its priorities, performance, employees’ morale and time spent on engagement with stakeholders.

Integrate CSR into corporate vision: Contrary to popular belief, a CSR strategy is not dissociated from a company’s corporate vision. A CSR strategy should help a company attain its vision in a responsible manner through understanding and managing reputational risks and mitigating negative impacts.

Understanding materiality: Only by understanding what is considered “material” will a company recognise its non-financial risk, and where and on whom its business impacts. Understanding materiality provides a starting point to develop a CSR strategy, programmes that are integrated throughout business operations, and a clearer perspective of which stakeholders with whom to engage.

Measure change: The Global Reporting Initiative (GRI) has a saying that encapsulates the importance of measuring changes and impacts of CSR strategy: “What you cannot measure, you cannot manage. What you cannot manage, you cannot change!”

Malaysian PLCs can learn more about all these tools and knowledge to be discussed at the upcoming CSR Asia Summit 2011. In its ninth year, the Summit will be held in Kuala Lumpur from 27–28 September 2011, and welcomes attendees from companies in the Asia-Pacific region that want to develop practical CSR strategies and effectively communicate to stakeholders. The conference will feature over 20 interactive break-out sessions, more than 50 regional speakers, and five pre and post-Summit training sessions. More information can be found here.

Bursa Malaysia is a supporting partner of the CSR Asia Summit 2011. Keynote speech at CSR Asia Summit 2010.

Page 12: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

SECURITIES MARKET SNAPSHOT 2Q 2011Indices 2Q 2011 1Q 2011FTSE 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 Market Highlights Units 2Q 2011 1Q 2011Market Velocity (Quarterly Average) % Market Capitalisation (as at end of quarter) RM bil Total Trading Volume (OMT + DBT) bil Trading Volume (OMT) bil Average Trading Volume (OMT) bil Total Trading Value (OMT + DBT) RM bil Trading Value (OMT) RM bil Average Trading Value (OMT) RM bil No. of Trading Days day No. of PLCs counter No. of Listed REITs counter No. of Listed Structured Warrants counter New Listings - IPOs (Including REITs) counter New Listings - Structured Warrants counter No. of Delisted Companies counter Total Funds Mobilised RM bil No. of Rights and Bonus Issues unit No. of New CDS Accounts Opened account

FOREIGN OWNERSHIP BASED ON MARKET VALUE

1998

Jun-

1120

1020

09

May-1

120

08

Apr-11

2007

Mar-11

2006

Feb-

1120

05

Jan-

1120

04

Dec-1

020

03

Nov-1

020

02Oct-

1020

0119

9920

00

21.4

% 21.7

%

21.7

% 22.0

%

22.0

%

20.8

%

21.4

%21.7

%

21.2

%

21.9

%

22.1

%

21.8

%

23.1

%

21.8

%

19.5

%

18.5

%

18.1

%

18.1

% 21.2

%

21.6

% 24.2

%

26.2

%

21.3

%

20.4

%

21.9

%

SECURITIES

1,579.0710,613.0410,842.25

4,198.1815,396.5321,063.7422,098.6710,995.9110,517.49

1,545.1310,341.2210,612.46

4,333.4715,061.4721,048.9722,134.4010,837.3010,373.21

29.81,342

6563

1.0103

991.663

95314

2958

869

3.013

49,138

41.61,311

10299

1.71321272.259

95414

2579

11512

2.816

44,586

Jul-1

0

Aug-1

0

Sep-1

0

As at Month End As at Year End

BursaBytes 11

Page 13: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

INFORMATION PACKAGE:-

We also offer a wide range of products and services for our investing public. To learn more, kindly click on the following:

• Investor Information

• Historical Information

• Bursa Station

DAILY MARKET TREND: FBMKLCI AND MARKET VELOCITY

DAILY MARKET TREND: MARKET CAPITALISATION, TOTAL VOLUME AND VALUE

FBM

KLCI

Market Velocity

Mkt Capitalisation (RM

bil)Volu

me

(bil)

& V

alue

(RM

bil)

Mkt Capitalisation

Velocity FBMKLCI

Total Value Total Volume

Jul-1

0

Jul-1

0

Aug-1

0

Aug-1

0

Sep-1

0

Sep-1

0

Oct-10

Oct-10

Nov-1

0

Nov-1

0

Dec-1

0

Dec-1

0

Jan-

11

Jan-

11

Feb-

11

Feb-

11

Mar-11

Mar-11

Apr-11

Apr-11

May-1

1

May-1

1

Jun-

11

Jun-

11

0%

1,400

1,600

1,700

1,400

1,000

1,500

1,100

1,200

1,300

1,600

800

400

00

1

4

3

5

2

1,200

1,000

600

200

60%

40%

20%

100%

80%

120%

SECURITIES

12 BursaBytes

Page 14: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

SECURITIES

Total Volume Total Value FBMKLCI

Note: Both Total Volume and Total Value include odd lot and direct business transactions

MARKET PERFORMANCE

You may refer to the following link for details on IPOs.

IPO Summary

BursaBytes 13

1000

1100

1200

1400

1500

1300

Inde

x (p

oint

s)

1600

1700

1800

6,000

7,000

3,000

4,000

1,000

2,000

5,000 Volume (units) / Value (RM

)(m

illion)

1-A

pr

5-A

pr

7-A

pr

11-A

pr

13-A

pr

15-A

pr

19-A

pr

21-A

pr

25-A

pr

27-A

pr

29-A

pr

4-M

ay

0-M

ay

16-M

ay

23-M

ay

25-M

ay

27-M

ay

6-M

ay

12-M

ay

19-M

ay

31-M

ay

2-Ju

n

8-Ju

n

14-J

un

20-J

un

24-J

un

6-Ju

n

10-J

un

16-J

un

22-J

un

28-J

un

30-J

un

Apr 12: Market sentiment dampened on global growth concerns and renewed worries over Japan’s nuclear crisis

The Prime Minister launched the Capital Market Masterplan 2 at Invest Malaysia 2011

Apr 16: Barisan Nasional retained its two-thirds majority in the Sarawak state elections

May 5: BNM raised its OPR by 25 bps to 3%, and the SRR to 3% from 2%

May 30: The government raised the price of gas by 28% and electricity tariffs by an average of 7.12% effective 1 June 2011

Jun 30:FBM KLCI closed at a fresh all-time high of 1,579.07 points, boosted by first-half window-dressing and after Greek Parliament approved austerity measures

Jun 23:Both Maybank and CIMB announced to abort plans for a potential merger with RHB Capital

May 31: BNM gave the green light to Maybank and CIMB separately to begin talks on a possible merger with RHB Capital

May 18: Malaysian economy registered a growth rate of 4.6% in 1Q2011

Page 15: 1 6 10 • Inbursa.listedcompany.com/newsroom/Bursa_Bytes_2Q11.pdf · listings of 29 IPOs last year, and I certainly hope to see more companies come to list before the end of the

DERIVATIVES

DERIVATIVES MARKET SNAPSHOT 2Q 2011

Spot Month Gross Outright Margin Spot Month Back Month Margin Rate (RM) (RM) Spread (RM) Spread (RM)

FCPO New 10/5/2011 6,000 5,750 N/A 625

Previous 3/3/2011 7,500 7,250 N/A 625

Market Demography (FKLI) Category 3Q 10 4Q 10 1Q 11 2Q 11

Foreign Institutions 35% 39% 36% 42%

Domestic Institutions 2% 2% 2% 2%

Domestic Retail 43% 40% 41% 37%

Locals 20% 19% 21% 19%

TOTAL 100% 100% 100% 100%

Market Demography (FCPO) Category 3Q 10 4Q 10 1Q 11 2Q 11

Foreign Institutions 28% 26% 29% 27%

Domestic Institutions 15% 14% 15% 14%

Domestic Retail 23% 26% 25% 24%

Locals 34% 32% 31% 35%

Proprietary 0% 2% 0% 0%

TOTAL 100% 100% 100% 100%

Margin Rates

INFORMATION PACKAGE:-For more derivatives information, click on the following:

• Products • Market Demography

• Volume and Open Interest • 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.

Volume

Open Interest

14 BursaBytes