Bursa Malaysia

Bursa Malaysia | Malaysia Stock Exchange

The Bursa Malaysia or formerly known as the Kuala Lumpur Stock Exchange is the premier security in Malaysia where the purpose of the Bursa Malaysia is to provide an internationally competitive marketplace for various investments and fundraising activities. The name of the Bursa Malaysia was changed from the name Kuala Lumpur Stock Exchange when Bursa Malaysia converted to become a demutualized exchange during the early months of the year 2004.

The history for the formation of the Bursa Malaysia begun when the Singapore Stockbrokers’ Association was first formed backed in the year 1930. Shortly after that, during the year 1937, the association was re-registered with the name Malayan Stockbrokers’ Association.

Despite the formation of the security, the Malayan Stockbrokers’ Association only started the public trading of shares in the year 1960. During that period of time, public shares were traded via two rooms on the Board system where these two rooms are both known as Singapore and Kuala Lumpur.

Bursa Malaysia KLSE

Shortly after the formation of the Stock Exchange of Malaysia in the year 1964, Singapore parted from the alliance with Malaysia during the year 1965 and the termination of currency interchangeability between Malaysia and Singapore soon follow suit at the year 1973. Thus with such drastic changes over time, the security was separated into two bodies which were both known as the Kuala Lumpur Stock Exchange Berhad (KLSEB) and The Stock Exchange of Singapore (SES).

Within the same year (1973), a new company which is limited by guarantee, the Kuala Lumpur Stock Exchange (KLSE) emerged, and soon, it took over the stock trading of the existing KLSEB. In the year 1986, the KLSE Composite Index was launch and soon, it became the barometer of the benchmark of the main market in the whole of Malaysia. In order to open up more windows of opportunities for companies with smaller capital, the Second Board of the KLSE was formed during the year 1988 so that smaller-sized companies can be listed.

Currently, the Bursa Malaysia is being closely regulated by various Acts of Parliament which are known as Securities Industry Act 1983, Securities Industry (Central Depositories Act) 1991, Securities Commission Act 1993, and as well Companies Act 1965.

The Bursa Malaysia has three main core businesses which are Exchanges Business Unit, Information Services Business Unit, and lastly, Clearing, Settlement, and Depository Business Unit. For the Exchanges Business Unit, there are three substantial business branches known as Bursa Securities, Bursa Derivatives, and LFX (Labuan International Financial Exchange).

As for the Information Services Business Unit, there is only one operation branch which is known as Bursa Information. Lastly, for the Clearing, Settlement, and Depository Business Unit, there are three main branches known as Bursa Securities Clearing, Bursa Derivatives Clearing, and as well Bursa Depository.

Today, the Bursa Malaysia is still growing steadily in coherence with the market of Malaysia. In addition to that, financial analysts forecasted that the net profit of Bursa Malaysia will certainly continue to grow in the future.