Bursa Malaysia Bhd Overview

Explain the structure of Bursa Malaysia Bhd
Functions and roles of stock exchange
- Primary market
- Secondary market
Explain the reasons for listing
Describe Bursa Malaysia Indices
Explain factors influencing stock market performance
Explain factors for issuing Initial Public Offerings (IPO)
Listing requirements for Bursa Malaysia
- Main Market
- ACE Market
Explain the Corporate Disclosure Policy

Bursa Malaysia Bhd (formerly KLSE): The stock exchange of Malaysia based in Kuala Lumpur; a major bourse in ASEAN.
Regulation:
- Acts as a regulator of Malaysia's capital market.
- Maintains fair and orderly securities and derivatives market.
Functions:
- Maintains orderly dealings in securities and ensures efficient transaction clearing and settlement.
- Issues rules for compliance from regulated entities such as listed issuers, traders, and brokers.
- Actively supervises listed issuers and market activities.

Bursa Malaysia Berhad: Parent company overseeing several subsidiaries including:
- Bursa Malaysia Securities Berhad: Manages the securities exchange.
- Bursa Malaysia Derivatives Berhad: Manages futures and options exchange.
- Bursa Malaysia Depository: Central depository for listed securities.
- Bursa Malaysia Clearing Sdn. Bhd.: Facilitates clearing for securities and derivatives.
- Bursa Malaysia Bonds Sdn. Bhd.: Operates electronic trading for bond markets.
- Bursa Malaysia Islamic Services: Manages Shari'ah-compliant trading platforms.

Raising Money for Businesses:
- Facilitates companies in raising capital by selling shares to public investors.
Mobilization of Savings:
- Provides a venue for individuals to invest, leading to better resource allocation and business activities.
Facilitating Company Growth:
- Mergers or acquisitions through the stock market provide opportunities for corporate expansion.
Creating Investment Opportunities:
- Allows small investors to participate in market and own shares alongside larger investors.
Economic Barometer:
- Stock price movements reflect economic conditions; market crash may result from economic downturns.
Corporate Governance:
- Greater shareholder diversity leads to improved management standards within companies.

Timing: Choosing the right moment to issue shares
Method of Listing: Direct public offering, traditional IPO, etc.
Underwriting the Issue: Securing financial backing.
Pricing: Setting the price correctly based on market demand.
Corporate/Capital Restructuring: Adjusting company structure for better market acceptance.

Definition: Market capitalization is the total market value of a company's outstanding shares.
Calculation: ext{Market Cap} = ext{Shares Outstanding} imes ext{Current Share Price}
Significance: Used to determine company size, influencing investment decisions.

Key Indices:
- FTSE Bursa Malaysia KLCI: The benchmark index comprising the 30 largest companies.
- Various Sectoral Indices: Include indices for construction, finance, technology, etc., each with specific base years.

Economic Performance: General health of the economy.
Interest Rates: Impact on borrowing and investment costs.
Reported Earnings: Company profitability affects investor confidence.
Oil Prices: Fluctuations affect broader economy.
Political Environment: Stability and policies influence market trends.
International Environment: Global economic conditions affect local markets.
Entry of Institutional Investors: Large players can sway market performance.

Objective: Ensures that the public has access to essential information for decision-making.
Core Policies:
- Immediate Public Disclosure: Timely reporting of significant corporate events.
- Public Dissemination: Information should reach the public effectively.
- Response to Rumours: Companies must clarify or deny false information promptly.
- Response to Unusual Market Activity: Inquiries into significant trading fluctuations.
- Promotion Compliance: Avoid excessive promotional activities without basis.
- Insider Trading Prevention: Restrictions on trading based on undisclosed material information.