Bursa and Bursa-ct

Bursa Q1 profit up 44%

Strong performance due to higher revenues from securities, derivatives trading

PETALING JAYA: Bursa Malaysia Bhd registered profit after tax and minority interest of RM40.5mil for the first quarter ended March 31, 44% higher than the RM28.1mil in the previous corresponding quarter.

Read more in The Star

AmResearch maintains Buy on Bursa Malaysia, unch FV RM9.60

KUALA LUMPUR: AmResearch said Bursa Malaysia’s earnings in the first quarter ended March 31, 2011 was boosted by strong volume and high velocity.

“We maintain our BUY rating on BURSA MALAYSIA BHD [] with an unchanged fair value of RM9.60. Our fair value is still pegged to fair P/E of 30x,” it said on Wednesday, April 20.

Bursa reported strong net earnings of RM40.5mil in 1QFY11, chalking up a robust 35.9% QoQ and 41.9% YoY growth.

“Annualised net earnings came in -4.2% below our estimate but was +2.5% above consensus forecast of RM157mil. The top line surpassed the RM100mil-mark, registering overall revenue of RM107.8mil in 1QFY11.

“This is the first time the quarterly revenue has surpassed the RM100mil level since almost three years ago in 3QFY07’s RM111.3mil,” it said.

Read it in The Edge

Bursa, Thai bourse to start cross-trades by year-end

MALAYSIA and Thailand will start cross-trading of shares by year-end as part of a plan to make Southeast Asian markets more accessible and spur trading, Bursa Malaysia Bhd chief executive officer Datuk Yusli Mohamed Yusoff said. Singapore, followed by the Philippines, will be next to join the drive to link the Association of Southeast Asian Nations (Asean), Yusli said yesterday.
The bourses aim to promote investment in a region with "one of the highest savings rates in the world", Veerathai Santiprabhob, Stock Exchange of Thailand's chief strategy officer, said by phone.

"What we're talking about is to create an electronic link between different markets in Asean," Yusli said in an interview in Kuala Lumpur.

"If Asia is going to be exhibiting strong relative growth compared to the rest of the world, then hopefully if we can get the infrastructure and network up, it can make it easier for investors to come here."

Read more: Bursa, Thai bourse to start cross-trades by year-end

Bursa Bullish 2011

Note: Bursa is a cool counter

Bursa starts new year with a bang

THE Malaysian stock market surged to a record intra-day high of 1,535.02 points on the first day of trading in 2011, driven by plantation and finance stocks' buying.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) started 2011 with a bang, closing at a record 1,533.42 points, surpassing the most optimistic of predictions for the start of the year.

Analysts had pegged the stock market's resistance level at 1,532 points this week, after it saw a sudden decline to 1,518.91 points at the last day of trading in 2010.

The FBM KLCI gained 14.51 points, or 0.96 per cent, yesterday to end the day as one of the standout performers in the region.

Markets across the region posted gains, with the Hang Seng Index chalking up the most at 1.74 per cent to close at 23,436.05 points.

Australia, China, Japan, New Zealand, Thailand and Vietnam markets were closed for trading yesterday, with South Korea trading only from 10am to 3pm.

"Generally speaking, it's (FBM KLCI) moving quite nicely today on pent-up buying. Last week things were quiet. The so-called window-dressing was a muted one and it looks like retail and institutional investors are back to work. You can see a good spread of investor buying," Pong Teng Siew, Jupiter Securities head of research, said yesterday.

He added that plantation stocks dominated a good proportion of top gainers because of the strong performance of crude palm oil (CPO) prices.

"Gains are likely to continue until the middle of the month, perhaps not 14 points everyday, but I expect tidy gains to be seen over the next fortnight," Pong said.

Most research houses expect the FBM KLCI to touch between 1,600 and 1,700 points by the end of 2011 helped by moving of funds into emerging markets, the possibility of an early general election and more government transformation initiatives.

Read more...

Broker way to ride on bull run

By YVONNE TAN yvonne@thestar.com.my

PETALING JAYA: The market has “come back to life” and one way to ride on this rejuvenation is by buying stocks of stock-broking houses, says research house Credit Suisse’s Malaysian unit. However, not all analysts share its view.

“The blue chip way to play it is through Bursa Malaysia Bhd given that 60% to 70% of its top-line is directly attributable to volume-related activities.

“Alternatively, you might want to take a look at TA Enterprise Bhd or OSK Holdings Bhd, the two more liquid brokers,” Credit Suisse told its clients in a note on Thursday.

Manulife Asset Management (M) Sdn Bhd chief executive officer Jason Chong pointed out that the current interest in the stock market was largely being fuelled by institutional buying.

“Technically, we are in a bull run but listed brokers rely on retail participation.

“Thus far, that has been lacking so will they (stock-broking houses) do exceptionally well, especially in the shorter term? I’m not sure about that,” he said.

“Normally, retail participation only comes in the last leg, I believe we’re at the initial stages (of a bull run),” Areca Capital Sdn Bhd chief executive officer Danny Wong said.

Retailers normally let institutions take the lead, he added.

Trading values at Bursa Malaysia have been growing over the past few months as markets flushed with cash chase after stocks with growth potential.

In July, daily average trading values stood at below RM1.1bil.

In August, this grew to RM1.3bil, expanding in September to RM1.5bil and this month, RM1.7bil, according to Bloomberg data.

Daily average trading volumes have also ballooned to the current 1.3 billion shares from below the 1-billion mark months ago.

Year-to-date, the benchmark FTSE Bursa Malaysia KL Composite Index is up about 17%.

“There is plenty of action among second-line stocks. If liquidity and pre-election confidence grows, this could sustain due to low valuation,” Credit Suisse said in its note.

“Given that 62% of the 936 stocks listed are trading below book value, we believe this market activity is sustainable,” it said.

At the close yesterday, Bursa was up 7 sen to RM8.24 , TA was flat at 70 sen while OSK added 4 sen to RM1.38.

Taken from here...

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

Bursa sees 2nd year of profit growth

Bursa Malaysia Bhd, the country’s stock exchange manager, expects profit to increase for a second year as the economy recovers and the government accelerates efforts to open the market to foreign investors.

“We expect positive growth in earnings this year,” chief executive officer Yusli Mohamed Yusoff said in an interview today in Singapore. “Expect the market to be volatile but the conditions are quite good for earnings to grow.”

Bursa had a 70 per cent gain in net income to RM177.6 million (US$53.1 million) last year on higher trading volume and listing fees. Yusli’s comments contrast with a forecast that profit will fall to RM141 million in 2010, according to the mean estimate among 16 analysts surveyed by Bloomberg.

The daily average volume in the stock market has more than doubled to 1.02 billion shares so far this year, compared with 408 million shares in the same period in 2009. The value of trades jumped to RM1.36 billion a day from RM602.7 million as the global economy revived and the government boosted spending to help resuscitate growth.

“Against the backdrop of a global recession, Malaysia’s economy has performed well,” Yusoff said. “It’s low and stable interest rate has been conducive for businesses to grow.”

Bursa’s profit decreased 57 per cent to RM104.4 million in 2008, when investors shunned emerging markets amid a global financial crisis.

The government may announce more “liberalization and reform measures” this month when the stock exchange holds its 6th annual Invest Malaysia conference, Yusuf said. He declined to give details. His “wish list” includes widening market access for retail investors and allowing foreign brokers to service the Malaysian market, he said.

The government has announced stimulus plans totaling RM67 billion over the past two years to help pull Southeast Asia’s third-largest economy from its recession. Prime Minister Datuk Seri Najib Razak also eased investment rules in June governing initial public offerings and takeovers to attract more overseas investors. -- Bloomberg

DJ Bursa Malaysia 4Q Net Profit At MYR96.3 Mln Vs MYR13.5 Mln

KUALA LUMPUR (Dow Jones)--Bursa Malaysia Bhd. (1818.KU) said Thursday its fourth-quarter earnings rose more than seven times from a year earlier mainly due to a one-off gain from a stake sale in its derivatives unit.

The Malaysian stock and derivatives exchange operator's net profit for the three months ended Dec. 31 was MYR96.3 million compared with MYR13.5 million a year earlier.

Bursa said in a filing that excluding the MYR76 million one-off gain from the disposal of a 25% stake in Bursa Malaysia Derivatives, operational profit was MYR20.3 million, a 50% rise from a year earlier, as more favorable investor sentiment boosted trading activity.

Fourth-quarter revenue more than doubled to MYR157.4 million from MYR71.1 million a year earlier.



- By K.P. Lee ; Dow Jones Newswires; (603) 2026 1233; kwan-por.lee@dowjones.com



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February 04, 2010 00:11 ET (05:11 GMT)

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Credit Suisse keeps Bursa Malaysia (1818.KU) as Outperform with unchanged MYR11.0 target

STOCK CALL: Credit Suisse keeps Bursa Malaysia (1818.KU) as Outperform with unchanged MYR11.0 target, which represents 42% potential upside. "We continue to believe 2010 will be a better year for capital markets, driven mainly by structural reforms made in June 2009, says CS; adds already see evidence of doubling trading volumes, stronger IPO pipeline, and increased capital raising and M&A activities. "And we expect further upside to market volumes arising from government sell down of GLC, and 15 to 17 GLC listings, and expectations of higher derivative income with CME tie up," says CS; notes Bursa's share price flat despite increased market activity post reforms. "At 21x FY10E P/E, Bursa's premium versus the market, and peers, is close to its recent low (seen in March 2009), despite its stronger growth outlook (two-year CAGR at 37.5%)," says CS. Stock last +0.8% at MYR7.75. (ECH)