Dec 23, 2009

Bursa Malaysia stock market 2009 in review

MALAYSIA'S stock market turned in a strong performance this year after a slow start as investors began betting ahead on a recovery from one of the world's worst recessions.

Still, the key stock index FTSE Bursa Malaysia KLCI's 43.2 per cent gains this year as at December 21, were among the worst in the region as other markets had also done well for themselves.
It was the second worst performer among the bigger stock markets in Asia, after Japan (up 14.7 per cent).
"This has been a spectacular year for the stock market, but it's not surprising, given that it is the first year of recovery," said Lim Chee Sing, head of research at RHB Research Institute Sdn Bhd.

The index, which stood at 1255.66 points as December 21, hit a low of 838.39 in March this year while still mired in the global economic crisis.

This was, however, not too bad compared to during the Asian financial crisis, when the index plunged to a low of just 262.70 points in September 1998.
The index has since been climbing, hitting the year's high of 1279.95 on November 17.

Among the key developments that took place in the stock market this year were:
* The merger of the Main and Second Boards into a unified board known as the Main Market from August 3, as well as the transformation of the Mesdaq Market into an alternative market for emerging companies known as the Ace Market.
* The merger of the Main and Second Boards into a unified board known as the Main Market from August 3, as well as the transformation of the Mesdaq Market into an alternative market for emerging companies known as the Ace Market. * The Kuala Lumpur Composite in July took on its new name, FTSE Bursa Malaysia KLCI, after adopting the FTSE global index standard.
* The Kuala Lumpur Composite in July took on its new name, FTSE Bursa Malaysia KLCI, after adopting the FTSE global index standard. * The listing of Maxis Bhd, South-East Asia's biggest initial public offfering worth US$3.3 billion (RM11.35 billion), in November.
* The listing of Maxis Bhd, South-East Asia's biggest initial public offfering worth US$3.3 billion (RM11.35 billion), in November. There were 13 new listings in all so far this year, with the 14th, that of Yoong Onn Corp Bhd, expected on December 23.
The number is far lower than the 23 new listings last year and the previous year's 26.
"For a 'normal' year, which means there are no adverse market conditions such as the one we have been in since mid 2008, I would expect to see between 30 and 40 new listings," said Bursa Malaysia Bhd's chief executtive officer Datuk Yusli Mohamed Yusoff.

source: businesstimes