Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study


Tuesday, April 20, 2010

Bursa Malaysia Q1 profit surges 81pc

Bursa Malaysia Bhd, the country’s stock exchange manager, said first-quarter profit surged 81 per cent from a year earlier as an economic recovery bolstered trading volume.

Net income rose to RM28.1 million (US$8.8 million), or 5.3 sen a share, in the three months ended March 31, from RM15.5 million, or 2.9 sen a share, a year earlier, it said in a stock exchange filing today. Revenue climbed to RM88.1 million from RM64.2 million.

Earnings gained on “improved investors’ confidence, which resulted in better performance in the securities market,” Bursa said. “We anticipate a better overall performance for the group” this year, it said.

The daily average volume on the Kuala Lumpur exchange more than doubled to 980 million shares in the first quarter from a year earlier, according to data compiled by Bloomberg. The FTSE Bursa Malaysia KLCI Index has advanced 4.7 per cent this year, the second-best performer in Southeast Asia after Indonesia.

The region’s third-largest economy emerged from its first recession in a decade in the last quarter of 2009, aided by government stimulus plans totaling RM67 billion and a global recovery.

Malaysia’s economy may expand 4.5 per cent to 5.5 per cent this year after shrinking 1.7 per cent in 2009, the central bank said in a March 24 report.

Increased Trading
Equities trading value doubled in the first quarter to RM39.6 million from the same period a year earlier, Bursa said in the statement.

Bursa shares were unchanged at RM7.58 as of the 12:30 pm local time break. They have fallen 5.1 per cent this year, compared with the 4.7 per cent gain in the benchmark index.

The company also received more fees from initial public offerings on the Kuala Lumpur stock exchange, it said.

Petroliam Nasional Bhd, or Petronas, said on April 8 it will list its petrochemicals business and Malaysia Marine & Heavy Engineering Sdn Bhd following the prime minister’s call for government-linked companies to divest non-core assets. -- Bloomberg

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts Plugin for WordPress, Blogger...