Be An Informed Investor to Create Wealth

Disclaimer

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The information in this webinar is for general information purposes only and

is provided on an “as is” basis without any representations or warranties of

any kind. The information does not constitute legal, financial, trading or

investment advice and it does not make any recommendation or

endorsement regarding any and all products mentioned. All participants of

the presentation and persons reading the information in these presentation

slides are advised to seek independent advice and/or consult relevant laws,

regulations and rules prior to relying on or taking any action based on the

information presented. All examples and views expressed are entirely the

presenter’s own.

Bursa Malaysia Berhad, the Bursa Malaysia group of companies (the Company)

and the presenter do not accept any liability for: the information provided

during the presentation and in the presentation slides (including but not

limited to any liability pertaining to the accuracy, completeness or currency

of the information); and for any investment or trading decisions made on the

basis of this information.

Speaker: Shane Choo

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• Shane Choo is a financial speaker, trader and investor, with 10

years of experience trading and investing in local and

international stocks, ETF, and currency.

• He is also a Certified Professional Trainer by IPMA, UK.

• As a speaker, he speaks regularly for Bursa Young Investor

Education seminars, investment banks and technical charting

companies.

• He also designs and conducts stock simulation games and

workshops for Bursa Malaysia nationwide. To date, he has trained

over 10,000 individuals in stock investment.

• He is also a frequently invited guest speaker for over 20

universities nationwide to teach investment.

• Currently, he is a stock market analyst for CITYPlus FM.

• In 2015, he was acknowledged by President Obama for his work

as a young leader in financial education.

Shane ChooDirector of LifeChamp

& WealthFort

What We Will Cover Today?

✓ Learn to avoid herd mentality and learn the importance of making independent judgement

✓ Learn Bursa Malaysia markets and indices inside out

✓ What are trading and CDS accounts and how to open these accounts

✓ What is Bursa Marketplace and learn how to find money-making information from Bursa Marketplace

✓ What is Bursa Academy and how to navigate around it to find relevant content to upskill yourself

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Avoid Herd Mentality, Make Independent Judgement

5Source: https://www.bernama.com/en/business/news.php?id=1871376

What are Shares?

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We offer diverse Shariah-compliant products and services. Our

Bursa Malaysia-i provides a comprehensive end-to-end Shariah

securities investing. Our Shariah-compliant offerings include:

We also operate Bursa Suq Al-Sila’, a commodity Murabahah

trading platform to facilitate Islamic liquidity management.

S E C U R I T I E S

We operate the securities market in Malaysia where

investors can participate in the buying and selling of

shares on the following markets:

Together these markets comprise 20 sectors that cover 49

economic activities. Our products include:

Main Market

766ACE Market

133LEAP Market

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933 Stocks

117 Structured Warrants

208 Warrants

18 REITs

20 ETFs

1 SPACs

1 Close-End Fund

I S L A M I C

715i-Stocks

6i-ETFs

4i-REITs

O F F S H O R E

We operate the Labuan International Financial Exchange

(LFX) which is based in Labuan IBFC. LFX is a full-fledged

exchange with listing and trading facilities.

USD25.2 billionMarket Capitalisation

19 Bond Listings

4ETBS

Bursa Malaysia: The Malaysian Stock Exchange

10 Sukuk Listings

We offer 16 derivatives products from the commodity, equity

and financial categories. Our products include:

D E R I VAT I V E S

8Commodity

Derivatives

4Equity

Derivatives

4Financial

Derivatives

1) Gold Futures

2) Crude Palm Oil Futures

3) USD RBD Palm Olein

Futures

4) Crude Palm Kernel Oil

Futures

5) USD Crude Palm Oil

Futures

6) Options on Crude Palm

Oil Futures

7) USD Tin Futures

8) USD RBD Palm Olein

Options Contract

1) FBM KLCI Futures

2) FBM KLCI Options

3) Single Stock

Futures

4) Mini FBM Mid 70

Index Futures

1) 3 Month KLIBOR

Futures

2) 3 Year MGS

Futures Contract

3) 5 Year MGS

Futures Contract

4) 10 Year MGS

Futures Contract

As at 31 August 2020

Source: Bursa Malaysia

Quantitative Criteria to be Listed

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Aspect Main Market ACE Market LEAP Market

Quantitative

Admission

Criteria

a.Profit Test

a. Uninterrupted profit of 3 to 5 full financial years

(“FY”), with aggregate after-tax profit of at least

RM20 million;

b. After-tax profit of at least RM6 million for the most

recent FY; and

c. Have been operating in the same core business over at

least the profit track record prior to submission.

b.Market Capitalisation Test

a. A total market capitalisation of at least RM500 million

upon listing; and

b. Incorporated and generated operating revenue for at

least one full FY prior to submission.

c.Infrastructure Project Corporation Test

a. Must have the right to build and operate an

infrastructure project in or outside Malaysia, with

project costs of not less than RM500 million; and

b. The concession or licence for the infrastructure

project has been awarded by a government or a state

agency, in or outside Malaysia, with remaining

concession or licence period of at least 15 years from

the date of submission.

No minimum

operating

track record

or profit

requirement.

No minimum

operating

track record

or profit

requirement.

Updated as of Aug 2020.

Source: https://www.bursamalaysia.com/listing/get_listed/listing_criteria

Quantitative Criteria to be Listed

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Aspect Main Market ACE MarketLEAP

Market

Public

Spread

•At least 25% of the company’s

total number of shares; and•Minimum of 1,000 public

shareholders holding not less than

100 shares each.

•At least 25% of the company’s total

number of shares; and•Minimum of 200 public shareholders

holding not less than 100 shares

each.

At least 10%

of the

company’s

total

number of

ordinary

shares at

admission.

Bumiputera

Equity

Requirement

*

Allocation of 50% of the public

spread requirement to Bumiputera

investors at the point of listing.

No requirement at the point of

listing. Allocation of 12.5% of the

enlarged share capital to MITI-

recognised Bumiputera investors.•within 1 year after achieving Main

Market profit track record, or•5 years after being listed on ACE

Market,

whichever is the earlier.

No

requirement

at the point

of listing.

*Companies with MSC status, BioNexus status and companies with predominantly foreign-based operations

are exempted from the Bumiputera equity requirement.

Updated as of Aug 2020.

Source: https://www.bursamalaysia.com/listing/get_listed/listing_criteria

FBMKLCI

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FBMKLCI is a capitalisation-weighted stock market index, composed of

the 30 largest companies on Bursa Malaysia by market capitalisation.

The constituent stocks will get replaced when they underperform.

FTSE Bursa Malaysia Indices

11Source: https://www.bursamalaysia.com/trade/our_products_services/indices/ftse_bursa_malaysia_indices/overview

Sectors

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No. Bursa Indexes Code

1. Utilities UTILITIES

2. Construction CONSTRUCTION

3. Consumer Products & Services CONSUMER PRODUC

4. Finance Services FINANCIAL SERVI

5. Industrial Products & Services INDUSTRIAL PROD

6. Health Care HEALTH CARE

7. Plantation PLANTATION

8. Property PROPERTY

9. REIT REIT

10. Technology TECHNOLOGY

11. Telecommunications & Media TELECOMMUNICATI

12. Energy ENERGY

13. Transportation & Logistics TRANSPORTATION

Source: https://www.bursamalaysia.com/trade/our_products_services/indices/bursa_malaysia_index_series

Size of Companies

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Market capitalisation is the total dollar market value of a company's outstanding shares.

Market Cap = Current Share Price x Total Outstanding Shares

1) Large Cap: >RM10bil

2) Mid Cap: RM2bil - RM10bil

3) Small Cap: <RM2bil

Trading Hours

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Trading Phases Market Timing

Pre-Opening 8.30am

Opening Auction / Main Trading Phase (1st

Session)

9.00am

End of 1st Session 12.30pm

Pre-Opening (2nd Session) 2.00pm

Opening Auction / Main Trading Phase (2nd

Session)

2.30pm

Pre-Closing (2nd Session) 4.45pm

Closing Auction / Trading At Last 4.50pm

End of Trading Day 5.00pm

Minimum Bid

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Price Range Tick Size

< RM1 RM0.005

RM1 - RM9.99 RM0.01

RM10 - RM99.98 RM0.02

> RM100 RM0.10

The tick size is the minimum price movement of a stock.

Shares are normally traded in specific amounts called Board Lots of

100 units.

Any amount less than board lots are called special lots or odd lots.

Transaction Costs

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1) Stamp Duty: 0.1% (Min:RM1; Max: RM200)

*Round up to the nearest ringgit

2) Clearing Fee: 0.03% (Max: RM1,000)

3) Brokerage Fee: 0.035% - 0.6% (Min: RM6 - RM28)

*Brokerage fee differs across different brokerage firms

*Industry standard: 0.42% (Min: RM12)

4) SST: 6% on Brokerage Fee

Transaction Costs Calculation

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Bought 1,000 Maybank shares at RM 9.00 = RM 9,000

Buy Settlement = Value of Shares + Transaction Costs

= RM9,000.00 + RM51.77

= RM9,051.77

Cost Calculation Amount

Stamp Duty RM 9,000 X 0.10% = RM 9.00 RM9.00

Clearing Fee RM 9,000 X 0.03% RM2.70

Brokerage Fee(assume 0.42%)

RM 9,000 X 0.42% X 1.06 RM40.07

Total TransactionCosts

RM51.77

Transaction Costs Calculation

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Sold 1,000 Maybank shares at RM 10.30 = RM 10,300

Sell Settlement = Value of Shares – Transaction Costs

= RM10,300.00 – RM59.95

= RM10,240.05

Cost Calculation Amount

Stamp Duty RM 10,300 X 0.10% = RM 10.30 RM11.00

Clearing Fee RM 10,300 X 0.03% RM3.09

Brokerage Fee (assume 0.42%)

RM 10,300 X 0.42% X 1.06 RM45.86

Total TransactionCosts

RM59.95

Market Participants

Bursa classifies investors to 3 groups:

1. Foreign

- Foreign Institution

- Foreign Retail

2. Local Institution

3. Local Retail

You can find their Daily Trading Participation on Bursa Malaysia.

19Source: https://www.bursamalaysia.com/market_information/market_statistic/securities

Bursa Settlement (T+2)

T Transaction day.

T+1 Contract states number of shares, prices, brokerage

charges and amount to be paid will be mailed to you.

T+2 Contract due and payment must be made on or before

this date

T+3 Force Selling Day. If the contract is not paid, the share

will be sold by company dealer

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Contra Transactions

➢ The procedures in giving orders to buy and sell in a contra transaction are the same. The only difference is that the client pays the broker or the broker pays the client for the difference in price between his buy and sell transaction.

➢ If the buy cost is higher than the sell proceeds, it results in a contra loss which the client pays to the broker.

➢ If the sell proceeds are higher, it results in a contra profit which the broker pays to the client.

➢ Contra dealing is not a right of the client but rather a privilege accorded by the stockbroking company to its clients. This means that the stockbroking company is not obliged to allow contra dealing facilities for all its clients.

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What is a CDS Account?

❖ A CDS (Central Depository System) account is fully owned andoperated by Bursa Malaysia Depository.

❖ It keeps a record of the ownership and the movement of sharestraded on Bursa Malaysia.

❖ When you buy shares, the shares will be credited into your CDSaccount.

❖ When you sell shares, the shares will be debited from your CDSaccount.

❖ There is no physical delivery of shares under the CDS. Instead,the CDS uses a simple book entry system to keep track of themovement of shares which arise from trades affected on BursaMalaysia.

❖ Investors can use the Central Depository System to transfersecurities from one CDS account to another, provided thetransfers are within the reasons approved by Bursa MalaysiaDepository Sdn Bhd.

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How CDS Account Works?

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What is a Trading Account?

• In addition to a CDS account, you also need to open a trading account with a broker.

• A trading account is maintained by a broker and is used to place your buy and sell order in the stock market.

• A trading account enables you to trade financial securities listed on Bursa Malaysia.

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How to Start Investing?

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Open Accounts

In order to trade in shares, you must open:

1. a Central Depository System (CDS) account

2. a trading account

with one of the stockbrokers.

Trade through Dealers Representatives:

1. Salaried dealer’s representatives

2. Commissioned remisiers

4 Steps to Start Investing

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Step 1: Select a stockbroker

Step 2: Apply for a CDS and a trading account

Step 3: Deposit money into your trading account

Step 4: Perform your trading

Licensed Brokers in Malaysia

27Source: http://www.bursamarketplace.com/mkt/partners/brokers

Introduction to Bursa Marketplace

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www.bursamarketplace.com

Bursa Marketplace is Malaysia’s complete share investment

portal for investors like you and me, to Learn, Try and Apply

Be an Informed Investors

Learn

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LEARN

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Unlock a World of Financial Learning

✓ It’s Simplified

✓ User-Friendly

✓ Accessible Anywhere, Anytime At

Your Own Pace.

Bursa Academy is a comprehensive one-stop e-learning platform that aims to provide investors with a continuous and holistic learning journey.

Learn more at Bursa Academy website now:www.bursaacademy.bursamarketplace.com

Try

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TRY

The Tools

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Alpha Indicator & Analyst

ConsensusAlpha Indicators & Analyst Consensus are powerful

quantitative tool developed by Thomson Reuters.

The Tools

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Stock ScreenerThe Stock Screener is designed to help you find stocks

that match your investment strategies and criteria.

The Tools

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HeatmapHeat maps are an innovative way to look at the market’s performance

and rank the best and worst performers by specific categories.

The Tools

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Research ReportThis section gives you the latest investment recommendations

from professional analysts at the brokerage houses

Apply

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APPLY

My MKT

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DashboardThe Dashboard is the place to track all your trading

activity and progress.

My MKT

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My WatchlistMy Watchlist is where your added stocks are listed for

you to view.

My MKT

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My PortfolioMy portfolio contains stocks you have purchased. A

summary of your investments and their performance.

My MKT

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My FuturesMy Futures is the place where you can keep track of all

your futures contracts.

Apply on the Real Market

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Click2TradeClick-2-Trade offers convenient access to your broker.

Fill the form to begin.

Key Takeaways

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• Register as a user @ www.bursamarketplace.com

• Download the Bursa Marketplacemobile app on Android and IOS

• Look out for events in theHappenings section

DISCLAIMER:

These presentation slides are owned by Bursa Malaysia Berhad and/or the Bursa Malaysia group of companies (“Bursa Malaysia”). Whilst Bursa Malaysia endeavors to

ensure that the contents in this presentation are accurate, complete, current and have been obtained from sources believed by Bursa Malaysia to be accurate and

reliable, neither Bursa Malaysia or the presenter of this presentation make any warranty, express or implied, nor assume any legal liability or responsibility for the

accuracy, completeness or currency of the contents of this presentation. In no event shall Bursa Malaysia be liable for any claim, however arising, out of or in relation

to this presentation.

This document shall be used solely for the purpose it was circulated to you. This document is owned by Bursa Malaysia Berhad and/or the Bursa Malaysia group of

companies (“Bursa Malaysia”). No part of the document is to be produced or transmitted in any form or by any means, electronic or mechanical, including

photocopying, recording or any information storage and retrieval system, without permission in writing from Bursa Malaysia.

Copyright Bursa Malaysia Berhad 2019 (30632-P)

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Thank you