Bursa puts in place initiatives to up retail participation

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KUALA LUMPUR: Bursa Malaysia Bhd (Bursa) aims to increase its retail participation from the current 14 per cent and initiatives to the effect have been put in place, chief executive officer Datuk Tajuddin Atan said yesterday.

Among the key initiatives are the profiling of companies listed on Bursa Malaysia, he told reporters after the bourse’s shareholders’ meeting yesterday.

“Our companies have grown, they used to be domestic champions and now they are regional champions,” he said, adding that Bursa Malaysia would also facilitate products and services for trading purposes.

In its financial year ending December 31, 2012, Bursa Malaysia’s average daily trading value for the securities market eased to RM1.67 billion from RM1.79 billion in the same period in2011.

As a result, trading revenue dwindled to RM178.3 million from RM193 million in 2011 due to continuous global market uncertainties.

However, the decline was cushioned by support from domestic institutions.

Tajuddin said Bursa Malaysia received interest for initial public offerings (IPOs) in Malaysia.

“The overhang through the general election seems to hold things a little bit but I am positive to say that if it is done and over with, hopefully, we see some traction at least at the second half of the year,” he said.

On growth, Tajuddin said the exchange expects an increase in its business segments.

In another development, Bursa Malaysia has launched eRights to facilitate investors to do electronic subscription and payment system when subscribing rights issues.

As a result, individual shareholders will be able to subscribe for rights via automated teller machines and internet banking facilities of participating banks.

Bursa Malaysia also launched the Nominee Rights Subscription e-services to facilitate electronic rights subscription and payment for nominee companies.

Tajuddin said the eRights was another initiative by the exchange to create a more facilitative trading environment.

Recent initiatives rolled out by Bursa Malaysia include the rule amendments to allow listing of Business Trust and Foreign Collective Investment Schemes and the revamped business rules for securities brokers. — Bernama