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Stock Market Malaysia – Fueling the Malaysian Economy!

October 26th, 2007 by Scrivener

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Malaysia is an upbeat and cheerful nation in Southeast Asia, which is a melting pot of diverse cultures of Malay, indigenous cultures, Chinese and Indian culture. It is a bustling cosmopolitan country making huge strides in industrialization and is hoping to make it big in the next few years. The world’s second tallest free standing towers of Petronas Twin Towers standing elegantly at  a staggering height of 452 meters is undeniably the celebrity icon of Malaysia.  

Malaysia Exchange was formerly known as Kuala Lumpur Stock Exchange that was set up way back in 1930; after seven years it became the Malayan Stockbrokers’ Association; however no trading of public shares was handled till 1960 when the Malayan Stock Exchange was founded. With one trading room each in Singapore and Kuala Lumpur they functioned as a single market with the same sharing listing at both the boards. 

It was only in 1964 that the Stock Exchange of Malaysia was officially founded. With the separation of Singapore from Malaysia and the currency interchangeability between
Malaysia and Singapore ceased, Kuala Lumpur Stock Exchange was demutualised and converted into a public limited company by shares in 2007 to form Bursa Malaysia. It has a main and a secondary board and its gross market capitalization was MYR700 billion (US$189 billion).  

In 2005 Malaysia Exchange or Bursa Malaysia became an independent exchange. Though its main index is Kuala Lumpur Composite Index (KLCI) other index series are also used in trading. Bigger companies are typically listed on the Bursa Malaysia Securities Main Board, while medium companies on the Second Board, and the growing companies on the MESDAQ market. The latest figures put the index at the 1000 figure mark that is expected to surge further this year. As on June 2007, the market capitalization stands at US$307 billion. Its market operations fall under the main sections of Securities Exchange, Derivatives Exchange, and Offshore Exchange. 

Stock market Malaysia deals in equities to promote investment opportunities in as many as 15 various sectors; futures and options contracts in international trading; listing of various financial instruments in American dollars by Labuan International Financial Exchange;  and Islamic Capital Market to ensure interest free ‘halal’ investment options to the populace. In addition it also offers an array of informative products and market analysis reports for the benefit of the public.

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