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

Kicking off our Newsletter for the first quarter this year, we have seen a positive start for the market in 2012. The FBMKLCI recently broke its all-time high level with trading value recording an average of RM1.9 billion, up from the RM1.6 billion seen in the final quarter of last year. For the securities market, our priority this year is to continue with our efforts to develop a vibrant marketplace for investors. To this end, we have focused on providing various platforms to build the profile and visibility of our listed companies. We have also identified the development of retail investors in Malaysia as one of the key areas towards creating a vibrant marketplace. To achieve this, we have continued our endeavour to educate the retail base through our Market Chat roadshows conducted in cities throughout the country.

For the derivatives market, we hosted our key Palm and Lauric Oils Conference & Exhibition (POC) from 5-7 March 2012, which provided participants with insights into the challenges facing the edible oils industry and the price outlook for 2012. Significantly this quarter, Bursa Malaysia Derivatives launched a new clearing and settlement system to provide more efficient clearing and settlement services for its clearing participants. On the topic of education, Bursa Malaysia Derivatives teamed up with Phillip Futures and University Tunku Abdul Rahman (UTAR) to organise a commodity trading challenge for students of UTAR to raise awareness on derivatives trading as part of a pilot project.

From our regulatory side, Bursa Malaysia held advocacy sessions for Chief Executive Officers and Chief Financial Officers in conjunction with the issuance of the Corporate Disclosure Guide and changes to the Listing Requirements last year. In addition, educational programmes were held for Dealers Representatives as part of our continuous effort to improve the conduct of market participants.

If you have any feedback or comments, please email to BursaBytes@bursamalaysia.com.

Issue 1 Vol 4 APR 2012

Updates from Bursa Malaysia

Note From The Editor

HIGHLIGHTSMarket Highlights

POC2012 – Another Successful •Gathering of the Edible Oils Market Professionals

Market Chat 2011/2012•

Local Participants Entry Requirements •for Derivatives Trading Eased

Bursa Malaysia Derivatives Introduces •New Clearing & Settlement System

RegulationAdvocacy Sessions on Disclosure for Chief •Executive Officers and Chief Financial Officers

BursaBytes 1

MARKET HIGHLIGHTS

POC2012 – Another Successful Gathering of the Edible Oils Market Professionals

The month of March saw the successful conclusion of the annual Palm and Lauric Oils Conference & Exhibition (POC). Held from 5 – 7 March 2012 and themed ‘Global Shocks … Local Impact’, the conference provided valuable insights from renowned experts on the latest trend and challenges facing the edible oils industry, and the price outlook for 2012. Delegates took the networking opportunity to greet new and old acquaintances and sought new business potentials.

The POC started off with the Golf Challenge, a Plantation Tour to Bukit Senorang Palm Oil Mill in Pahang and workshops by Bursa Malaysia Derivatives. The first day ended with a cocktail reception where delegates enjoyed a fruitful networking session amid the splendid ambience and a good array of food.

Palm Oil session speakers with the tokens presented by Dato’ Tajuddin Atan, CEO, Bursa Malaysia Berhad (centre).

Held from 5 – 7 March 2012 and themed ‘Global Shocks … Local Impact’, the conference provided valuable insights from renowned experts on the latest trend and challenges facing the edible oils industry, and the price outlook for 2012.

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MARKET HIGHLIGHTS

Full house at the POC 2012 conference.

On the second and third day of the conference, speakers and panelists presented engaging discussions on various issues affecting the industry. The crowd was at full capacity on both days. Participants attended the concurrent sessions organised by our Trading Participants on discovering trading opportunities through Malaysia’s Crude Palm Oil Futures contract. The second day of the event ended with a sumptuous dinner and entertainment at the Gala Dinner.

Awards were presented to recognise the 2011 trading achievements in various categories. Kenanga Deutsche Futures bagged the Top Overall and Top Equity Trading Participant Award. The Top Commodity Trading Participant and the Top Financial Trading Participant went to TA Futures and RHB Investment Bank respectively. Under the Locals Participant category, the top spot was awarded to Eng Boon Kian (Top Local 2011) and the 1st runner-up and 2nd runner-up were Loo Cheong Hin and Yow Weng Kong respectively.

Delegates networking at the popular POC 2012 Cocktail.

Visitors listening to the briefing at the plantation tour at Senorang Palm Oil Mill.

BursaBytes 3

MARKET HIGHLIGHTS

MARKET CHAT 2011/2012

In line with Bursa Malaysia’s commitment to create a sustainable and diversified investor base, the popular annual Market Chat programme is an integral part of the strategy to reach out to more retail investors.

Market Chat 2011/2012, the fifth instalment of our retail strategy targeting 84 roadshows, will make stops in 30 cities throughout Malaysia. The focus of this season is to increase Bursa Malaysia’s level of engagement to reach more retail investors specifically in non-traditional markets outside Klang Valley, Penang, Ipoh, Johor Bahru, Kuching, and Kota Kinabalu. Market Chat 2011/ 2012 will continue to follow in its tradition of educating retail investors and creating greater awareness of the products and services available in the securities markets, i.e. Exchange Traded Funds (ETFs), Real Estate Investment Trusts (REITs), Bursa Station, CMDF Bursa Research Scheme (CBRS), eDividend, and warrants.

Over the years, the number of Market Chat broker partnerships has increased from three broker partners in 2007 to nine in 2012. With the effort and commitment of Bursa Malaysia and its broker partners, Market Chat’s retail engagement has increased substantially by 600%. The increase in retail engagement has in turn resulted in an increase in the awareness of internet trading. This is evidenced by its penetration doubling from 3.8% in 2007 to 7.9% in 2010. According to one of the broker partners, the value of their online trades has tripled since the inaugural Market Chat in 2007.

Bursa Malaysia, together with its broker partners, has provided impactful and informative sessions for the retail participants, who in turn have spoken positively about Market Chat. We expect to see greater turnout for the rest of this season. Market Chat 2011/2012 is expected to conclude in May 2012.

Participants at a Market Chat event opening new CDS accounts.

Dr. Nazri Khan, Head of Research, Affin Investment Bank delivering a presentation at a Market Chat event held at the Securities Commission.

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MARKET HIGHLIGHTS

LOCAL PARTICIPANTS ENTRY REQUIREMENTS FOR DERIVATIVES TRADING EASED; EXAMINATION, ACADEMIC AND EXPERIENCE PRE-REQUISITES REMOVED

Bursa Malaysia Derivatives Berhad (BMD) has eased the entry requirements for individuals aspiring to be professional derivatives traders or Local Participants. Candidates no longer need to take the licensing examination or show the relevant academic qualification and industry experience to become a Local Participant. This is part of the Exchange’s initiatives to increase the number of traders in the market. A Local Participant is a professional derivatives trader who trades his/her own account, or is a self-employed trader. He/She is not permitted to conduct trades on behalf of clients. This year, BMD conducted several two-day familiarisation programmes for these aspiring traders. Five of these sessions were held in February.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia and Chairman of BMD was quoted saying that those who wish to trade have a lot of resources at hand to make informed decisions, and Bursa Malaysia should not legislate qualification for those who wanted to trade in derivatives. He added that this liberalisation measure signifies the Exchange’s commitment to grow the Local Participants base as they contributed greatly to market liquidity.

Local Participants will enjoy rebates on exchange and clearing fees if they trade 1,000 or more contracts per month. Local Participants are registered with BMD and can trade in all BMD products.

To find out more or to be registered as a Local Participant, visit Bursa Malaysia’s website at www.bursamalaysia.com or contact Bursa Malaysia Derivatives at 03- 2034 7242.

In February 2012, Bursa Malaysia Derivatives Berhad (BMD) launched a new derivatives clearing and settlement system to provide faster and more efficient clearing and settlement services for its Clearing Participants.

The new clearing and settlement system went live on Monday, 27 February 2012. It can facilitate the introduction of new derivatives futures and options products. It complements and supports BMD’s earlier adoption of the CME Globex® trading platform, one of the world’s fastest global electronic trading systems for futures and options.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia and Chairman of BMD said that as exchanges around the world are facing intense competition, Bursa Malaysia must actively pursue ways to reduce friction in the marketplace and create a more efficient trading, clearing and settlement environment.

The benefits of the new clearing and settlement system include a higher capacity for the clearing and settlement of high volume trades; higher automation due to its web-based technology; and advanced functionalities, such as online real-time electronic request and approval processes and electronic delivery of documents for physically delivered products, including multi-market and multi-currency settlement features. For Clearing Participants, this means greater improvement in efficiency through increased real-time availability of clearing information and a significant reduction of paperwork.

BURSA MALAYSIA DERIVATIVES INTRODUCES NEW CLEARING AND SETTLEMENT SYSTEM

BursaBytes 5

MARKET HIGHLIGHTS

BURSA MALAYSIA DERIVATIVES, PHILLIP FUTURES & UNIVERSITY TUNKU ABDUL RAHMAN (UTAR) RUN COMMODITY TRADING CHALLENGE FOR UNIVERSITY STUDENTS

As part of a pilot project, Bursa Malaysia Derivatives Berhad (BMD), together with Phillip Futures and UTAR, organised the Commodity Trading Challenge for local undergraduates and graduate students to raise awareness on derivatives trading. Winning teams had the opportunity to compete in an international derivatives trading game and be in the running for a paid summer internship with CME Group in Chicago. The Commodity Trading Challenge, an annual international electronic and open outcry competition, was organised by CME Group and supported by BMD. BMD’s participation was in line with its corporate social responsibility focus on educational programmes through university collaborations.

The Malaysian leg of the Commodity Trading Challenge was held from 16 - 18 January 2012. The teams of UTAR students competed against one another by simulating trading in two of BMD’s highly traded derivatives products, crude palm oil (FCPO) and equity index futures (FKLI). Selected students attended a two-day workshop conducted by Phillip Futures and had the opportunity to learn from experts and practitioners in the industry as well as the experience of being a futures trader.

Sree Kumar of Bursa Malaysia Derivatives briefing students on the commodity trading challenge.

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REGULATION

EDUCATIONAL PROGRAMME FOR DEALER REPRESENTATIVES (DRs)

As part of our continuous efforts to improve the business conduct of market participants, we continued with our educational programme entitled ‘Key obligations of DRs relating to Trading’. Bursa Malaysia held three sessions for DRs in Penang, Kuching and Johor Bahru on 25 February, 10 March and 24 March 2012 respectively.

The programme was well received with over 120 attendees participating in each session. The programme was accredited by the Securities Industry Development Corporation (SIDC) under its ‘Continuing Professional Education’ (CPE) scheme with ten CPE points awarded to the participants.

Dealers Representatives attending an educational programme held in Kuching.

Following the issuance of the Corporate Disclosure Guide and changes to the Listing Requirements last year on enhanced disclosure requirements for financial reporting and annual reports, Bursa Malaysia arranged a series of advocacy sessions on disclosure for Chief Executives Officers and Chief Financial Officers of PLCs.

The fourth advocacy session on disclosure was held at Bursa Malaysia on 20 March 2012. This is part of Bursa Malaysia’s effort to raise awareness on corporate disclosure obligations and to promote high level of disclosure practices among listed issuers. The advocacy sessions will continue throughout 2012 with the aim of engaging all listed companies on Bursa Malaysia.

Selvarany Rasiah, Chief Regulatory Officer, Bursa Malaysia delivering a speech at the advocacy session on disclosure.

ADVOCACY SESSIONS ON DISCLOSURE FOR CHIEF EXECUTIVE OFFICERS AND CHIEF FINANCIAL OFFICERS

SECURITIES MARKET SNAPSHOT 1Q 2012Indices 1Q 2012 4Q 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 1Q 2012 4Q 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

21.7

%

21.7

% 22.0

%

22.1

%

21.6

%

22.2

%

22.2

% 22.4

%

22.4

%

22.5

%22.7

%

22.8

%

SECURITIES

1,596.3310,746.4410,939.634,583.84

18,281.5221,674.3223,070.7811,530.6110,816.23

1,530.7310,312.7410,489.074,068.58

16,519.7519,951.7921,979.3911,022.6310,300.29

34.41,355

1191151.9

1161091.859

93915

3362

1274

2.611

30,803

26.71,285

99951.686821.361

94115

3042

70122.112

27,771

Jun-

11

May-1

1

Apr-11

Mar-12

Feb-

12

Jan-

12

Dec-1

1

Nov-1

1

Oct-11

Jul-1

1

Aug-1

1

Sep-1

1

As at Month End

BursaBytes 7

2010

2011

2009

2008

2007

2006

2004

2005

2003

200220

01

18.5

%

18.1

%

18.1

% 21.2

%

21.6

% 24.2

%

26.2

%

21.3

%

20.4

%

21.9

%

22.7

%

As at Year End

INFORMATION

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

• Investor Information

• IPO Summary

• 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

1

Jul-1

1

Aug-1

1

Aug-1

1

Sep-1

1

Sep-1

1

Oct-11

Oct-11

Nov-1

1

Nov-1

1

Dec-1

1

Dec-1

1

Jan-

12

Jan-

12

Feb-

12

Feb-

12

Mar-12

Mar-12

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

7

3

6

5

8

9

2

1,200

1,000

600

200

80%

40%

30%

20%

10%

80%

70%

60%

90%

SECURITIES

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DERIVATIVES

DERIVATIVES MARKET SNAPSHOT 4Q 2011

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

FCPO New 13/2/2012 N/A 4,000 200 150

Previous 8/2/2012 N/A 4,500 200 150

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

9 BursaBytes