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

2011 was mostly marked by volatility and negative sentiment in global markets but despite all this, the Malaysian market weathered the storm, proving its tenacity in the face of uncertainty. The FBM KLCI ended the year by edging up 4.76 points in the last week of trading, a slightly better performance than its regional peers.

On Bursa Malaysia’s front, we continued our pursuit to make our market more attractive, and our Exchange more competitive. In 4Q2011, we hosted the inaugural IPO Seminar and launched the Practical Guide to Listing to assist SMEs in their journey to become public-listed entities. Our commitment to push the ASEAN agenda remained on track, as we worked hard to realise the multifold benefits of an integrated and interlinked ASEAN trading platform for investors.

On 29th November 2011, Bursa Malaysia launched the start of the annual Corporate Governance (CG) Week. During the CG week, renowned international experts converged in Malaysia to push the agenda of sustainability and good governance further.

On the derivatives front, we hosted an appreciation dinner for Talk Futures participating brokers to thank them for their contribution in drumming up interest among retail investors in derivatives trading. In addition, Bursa Malaysia Derivatives introduced the Negotiated Large Trade facility to improve efficiency in December 2011.

On this note, we wish you a good and productive year ahead. May you embrace the new year with vigor and positivity. To our friends celebrating Chinese New Year, Gong Xi Fa Cai.

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

Issue 4 Vol 3 JAN 2012

Updates from Bursa Malaysia

Note From The Editor

HIGHLIGHTS1 Market Highlights

Bursa Malaysia Launches •Practical Guide to Listing

FTSE and Bursa Malaysia •Introduce New Sector Indices and Refine Ground Rules on Free-Float

Asean Exchanges CEOs: Plans on •Track To Promote Asean as an Asset Class

Bursa Malaysia Derivatives Introduces •Negotiated Large Trade Facility

Bursa Malaysia Derivatives Hosts •Appreciation Dinner For Talk Futures Participating Brokers

6 RegulationSecurities Commission and Bursa Malaysia •Hosts 3rd Annual Corporate Governance Week

BursaBytes 1

MARKET HIGHLIGHTS

BURSA MALAYSIA LAUNCHES PRACTICAL GUIDE TO LISTINGThe Going Public Guide was launched by Dato’ Sri Mustapa Mohamed, Minister of

International Trade and Industry at the opening of the IPO Seminar 2011organised by Bursa

Malaysia in collaboration with SME Corporation Malaysia.

On 29 November 2011, Bursa Malaysia unveiled a Practical Guide to Listing on Bursa Malaysia to assist aspiring companies, particularly small and medium enterprises (SMEs), on their listing journey and life as a listed company. The Going Public Guide was launched by Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry at the opening of the IPO Seminar 2011 organised by Bursa Malaysia in collaboration with SME Corporation Malaysia.

Tun Mohamed Dzaiddin Bin Haji Abdullah, Chairman of Bursa Malaysia, Tan Sri Azman Hashim, Chairman of Malaysian Investment Banking Association (MIBA) and Dato’ Hafsah Hashim, Chief Executive Officer of SME Corporation Malaysia were also present to grace the event.

The IPO Seminar is one of the initiatives spearheaded by the Exchange to support the Government’s agenda in enhancing the understanding of access to funding for SMEs and assist them in their preparation to take their companies to the next level as listed entities.

The seminar was attended by past and present winners of the Enterprise 50 (E50) Award. The E50 Award recognises 50 of the top most performing Malaysian SMEs that have the largest potential to excel in future and go global.

Aside from the launch of the Going Public Guide, which was jointly developed by Bursa Malaysia and MIBA, the seminar also featured discussions on the available options for entry into Bursa Malaysia, the processes and criteria for listing. Directors of listed companies were also present to share their experience in listing their respective companies. They also provided a glimpse into life as a public listed company.

From left : Tun Mohamed Dzaiddin Hj Abdullah, Chairman, Bursa Malaysia Berhad, Dato’ Tajuddin Atan, CEO, Bursa Malaysia Berhad, Dato’ Hafsah Hashim, Chief Executive Officer of SME Corporation Malaysia, Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry and Tan Sri Azman Hashim, Chairman of Malaysian Investment Banking Association (MIBA).

2 BursaBytes

MARKET HIGHLIGHTS

FTSE AND BURSA MALAYSIA INTRODUCE NEW SECTOR INDICES AND REFINE GROUND RULES ON FREE-FLOAT

On 3 October 2011, FTSE Group (FTSE) and Bursa Malaysia announced the launch of a new set of Industry, Supersector and Sector indices to complement the existing FTSE Bursa Malaysia Index Series. The new FTSE Bursa Malaysia EMAS Industry indices are designed to provide investors with a comprehensive set of tools for in-depth analysis of the Malaysian stock market.

In conjunction with this extension of the existing FTSE Bursa Malaysia Index Series, the free-float methodology for the FTSE Bursa Malaysia Index Series has been reviewed and enhanced, to ensure the indices continue to provide the most accurate reflection of the Malaysian equity market opportunity.

NEW SECTOR INDICES The new set of 10 Industry, 19 Supersector and 39 Sector indices can be used to execute investment strategies and to create index-linked financial products based on sector-specific criteria. As a result, investors will gain deeper granularity and better understanding of the sectors, including those that are driving market performance. Designed using the Industry Classification Benchmark (ICB), adopted as a global standard in stock, sector and industry classification, the indices will also enable investors to make attribution and cross border comparison between sectors and industries in Malaysia and other countries.

The new FTSE Bursa Malaysia EMAS Industry indices form part of the FTSE Bursa Malaysia EMAS universe and will be calculated on an end of day basis. Subscribers of the FTSE Bursa Malaysia Index Series will receive the new indices as part of their existing data package at no extra cost. A full list of the Industry, Supersector and Sector indices can be found here.

REFINING THE FREE FLOAT DEFINITION The change to the definition of free float restrictions continues to provide domestic investors with robust, reflective and accurate benchmarks and tradable indices. At the same time, the alignment of the FTSE Bursa Malaysia Index Series methodology towards that of the flagship FTSE Global Equity Index Series, used by investors around the world, maintains an internationally approved approach to the Malaysian financial market.

The methodology change is one of a number of factors reviewed to ensure that as the index series develops, it continues to provide investors with a sound representation of the true investability of companies in the FTSE Bursa Malaysia Index Series, thereby enabling effective and efficient replication of the index.

MORE INFORMATIONFor more information on the indices within the FTSE Bursa Malaysia Index Series, including performance data, constituent information and the index ground rules, please visit www.ftse.com/bursamalaysia

BursaBytes 3

MARKET HIGHLIGHTS

ASEAN EXCHANGES CEOS: PLANS ON TRACK TO PROMOTE ASEAN AS AN ASSET CLASS

BURSA MALAYSIA DERIVATIVES INTRODUCES NEGOTIATED LARGE TRADE FACILITY

Following the November 2011 ASEAN Exchanges CEOs meeting, on 17 November 2011, the ASEAN Exchanges CEOs announced that the collaboration framework is on track towards meeting its goals of collectively promoting ASEAN as a highly investable asset class. The Philippine Stock Exchange President and CEO, Hans Sicat said, “the marketing of the ASEAN Stars and the work on an ASEAN index series continues as planned with the ASEAN Exchanges collaboration members. The 2012 marketing activities for ASEAN Exchanges will be finalised at our scheduled CEOs meeting on 2 December 2011 in Hanoi.”

The seven ASEAN Exchanges have a combined market capitalization of approximately USD2.0 trillion and more than 3,600 companies listed on their exchanges. Some of these companies are the largest and most dynamic companies in the world, including leaders in finance and banking, energy, telecommunications, commodities, automotive manufacturing and other industrial sectors.

The CEOs also announced the awaited roll-out plan of the ASEAN Trading Link which will see the participation of member exchanges taking place progressively in stages. The first stage will see the connectivity of Singapore Exchange and Bursa Malaysia in June 2012 and the Stock Exchange of Thailand added in August 2012 after its new trading engine goes live. The participation dates of the other ASEAN Exchanges collaboration members, namely, Hanoi Stock Exchange, HoChiMinh Stock Exchange, Indonesia Stock Exchange and The Philippines Stock Exchange will be announced at a future date.

Market participants can now transact large-sized orders on futures contracts listed on Bursa Malaysia Derivatives via the Negotiated Large Trade (NLT) facility. This newly introduced facility allows large trades to be transacted at a single price, thereby minimising slippage and execution uncertainties.

This service is available for the KLCI Index Futures (FKLI), the Crude Palm Oil Futures (FCPO), the 3-Month KLIBOR Futures (FKB3) and the 5-Year MGS Futures (FMG5) contracts.

The NLT facilitates direct and private negotiations among customers and enables large orders to be transacted away from the Trading System. Trading Participants may use the facility to execute NLTs on behalf of their clients. The trades are then reported to the Exchange for clearing; and the volume and registration time of the negotiated trades are announced to the market.

For further information on the NLT facility, visit Bursa Malaysia’s website here.

4 BursaBytes

MARKET HIGHLIGHTS

BURSA MALAYSIA DERIVATIVES HOSTS APPRECIATION DINNER FOR TALK FUTURES PARTICIPATING BROKERS

Bursa Malaysia Derivatives (BMD) hosted an appreciation dinner for participating brokers of its Talk Futures roadshows on 12 December 2011 in celebration of the success of the educational series. In its second year, Talk Futures is aimed at creating a class of investors who are equipped with the knowledge of trading in equity, commodity and financial futures. The Talk Futures roadshows are part of BMD’s retail investment programme aimed primarily at encouraging greater retail participation in the derivatives market.

The roadshows, organised in collaboration with the futures broking industry, highlighted derivatives trading opportunities in the current volatile market environment as well as the use of trading strategies and tools to assist traders in making informed decisions.

In his welcome remarks, Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia Berhad and Chairman of Bursa Malaysia Derivatives said, “What we have achieved in the short span of time is encouraging. 2011 has been a very good year for our derivatives business.”

The participating brokers feted for their participation and contribution to the Talk Futures roadshows were AmFutures Sdn Bhd, CIMB Futures Sdn Bhd, ECM Libra Investment Bank Bhd, Hong Leong Investment Bank Bhd, IF Derivatives Sdn Bhd, Inter-Pacific Securities Sdn Bhd, LT International Futures (M) Sdn Bhd, Oriental Pacific Futures Sdn Bhd, OSK Investment Bank Bhd, Phillip Futures Sdn Bhd and TA Futures Sdn Bhd.

For more information on Talk Futures, please visit www.bursamalaysia.com.

Tun Mohamed Dzaiddin Haji Abdullah, Chairman of Bursa Malaysia, Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia & Chairman of Bursa Malaysia Derivatives and senior Bursa Malaysia Derivatives staff, together with Talk Futures participating brokers at the appreciation dinner.

BursaBytes 5

MARKET HIGHLIGHTS

AWARDS AND ACCOLADES IN 2011

Malaysian CG Index Awards by MSWG

Distinction Award •Special Transparency Award•

The Islamic Business & Finance Awards

Outstanding Contribution Award•

Investor Relations Awards by Investor Relations Global Ranking

Outstanding Corporate Governance in Asia-Pacific•Best Online Annual Report in Asia-Pacific•Investor Relations Website in Asia-Pacific - Bronze Award•Best Ranked Corporate Governance by Industry (Financials)•

Bursa Malaysia was pleased to receive the following awards for the year 2011

6 BursaBytes

REGULATION

SECURITIES COMMISSION AND BURSA MALAYSIA HOSTS 3RD ANNUAL CORPORATEGOVERNANCE WEEK

The Corporate Governance Week 2011, jointly organised by the Securities Commission Malaysia (SC) and Bursa Malaysia, was held from Tuesday, 29 November 2011 to Friday, 2 December 2011. CG Week continued its annual tradition of fostering a platform for the industry to share and discuss on issues and challenges of good corporate governance practices among public listed companies. Held at Bursa Malaysia, the conference was aimed at drawing the participation of Boards of Directors, Chief Executive Officers and other C-suites, and industry associations.

Launching the four day-long CG Week, themed “Sustainability: Taking Corporate Governance a Step Further” was SC Chairman, Tan Sri Zarinah Anwar, and Bursa Malaysia Chairman, Tun Mohamed Dzaiddin Hj. Abdullah.

This year’s theme ‘Sustainability: Taking Corporate Governance a Step Further’ captured corporate governance issues from the perspective of building business sustainability through a series of discussions, forums and panel sessions by industry experts.

The CG Week featured international speakers such as Mahendra K. Couhan from the Asian Centre for Corporate Governance and Sustainability; Professor Mak Yuen Teen from the National University of Singapore; Professor CK Low from the Chinese University of Hong Kong; and Marcel Engel from the World Business Council for Sustainable Development, as well as other renowned key speakers.

Participating organisations included the Minority Shareholders Watchdog Group (MSWG), Association of Chartered Certified Accountants (ACCA), Malaysian Alliance of Corporate Directors (MACD), Malaysian Institute of Chartered Secretaries and Administrators (MAICSA), Malaysian Institute of Integrity, Malaysian Institute of Accountants (MIA), Institute of Internal Auditors Malaysia (IIAM) and Malaysian Institute of Corporate Governance (MICG).

CG Week continued its annual tradition

of fostering a platform for the industry

to share and discuss on issues

and challenges of good corporate

governance practices among public

listed companies.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia and Tun Mohamed Dzaiddin Haji Abdullah, Chairman of Bursa Malaysia together with Tan Sri Zarinah Anwar, Chairman of Securities Commision Malaysia at the launch of Corporate Govenance Week

SECURITIES MARKET SNAPSHOT 4Q 2011Indices 4Q 2011 3Q 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 4Q 2011 3Q 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

22.0

%

21.4

%

21.4

% 21.7

%

21.7

% 22.0

%

22.1

%

21.6

%

22.2

%

22.2

% 22.4

% 22.7

%

SECURITIES

1,387.139,253.749,397.573,597.95

14,019.2318,183.0420,163.639,765.669,126.66

1,530.7310,312.7410,489.07

4,068.5816,519.7519,951.7921,979.3911,022.6310,300.29

33.51,172

63591.0

1171071.762

95214

2969

92107.219

42,615

26.71,285

99951.686821.361

94115

3042

70122.112

27,771

Jun-

11

May-1

1

Apr-11

Mar-11

Feb-

11

Jan-

11

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 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

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

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

7

3

6

5

8

9

2

1,200

1,000

600

200

80%

40%

30%

20%

10%

80%

70%

60%

90%

SECURITIES

8 BursaBytes

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 5/10/2011 6,250 6,000 N/A 500

Previous 6/9/2011 7,250 7,000 N/A 500

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

Foreign Institutions 36% 42% 35% 37%

Domestic Institutions 2% 2% 2% 2%

Domestic Retail 41% 37% 43% 45%

Locals 21% 19% 20% 16%

TOTAL 100% 100% 100% 100%

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

Foreign Institutions 29% 27% 28% 29%

Domestic Institutions 15% 14% 11% 11%

Foreign Retail 0% 0% 1% 1%

Domestic Retail 25% 24% 25% 25%

Locals 31% 35% 35% 34%

TOTAL 100% 100% 100% 100%

Margin Rates

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

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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