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The Bursa Malaysia Berhad is an important
member of the global stock markets, with a
history stretching back almost 80 years.
Instituted in 1930, the private Singapore
Stockbrokers' Association was the first
sanctioned securities trading organization
in Malaysia. This association of stock
market Malaysia was renamed the Malayan
Stockbrokers' Association in 1937, but did
not yet publicly trade shares.
In 1960, public trading of shares was
inaugurated with the public Malaysian
market, called the Malayan Stock Exchange.
The Malayan Stock Exchange was the
predecessor of the modern Malayan securities
market. The Malayan Stock Exchange was
renamed the Stock Exchange of Malaysia in
1964.
The stock market malaysia
operations continued as the Stock Exchange
of Malaysia and Singapore (SEMS) after
Singapore seceded from Malaysia in 1965. The
exchange split into the Stock Exchange of
Singapore, and the Kuala Lumpur Stock
Exchange Board in 1973, following the
separation of the Malayan and Singapore
currencies. In 1976, the Kuala Lumpur Stock
Exchange was incorporated to take over
operations of the KLSEB. The KLSEB was
renamed the Kuala Lumpur Stock Exchange in
1994.
Under direction of the Demutualization Act,
in 2004 the klse stock market was converted
from a not-for-profit organization limited
by the guarantee of its membership, to an
entity limited by its shares, called the
Bursa Malaysia Berhad. At this time, the
stock market malaysia exchanges had a market
capitalization of US $189 billion. With
conversion, the securities exchange part of
the business was transferred to a
wholly-owned subsidiary, Bursa Securities.
In 2005, Bursa Malaysia was listed on the
Main Board of Bursa Malaysia Securities
Berhad.
Stock Market Malaysia - KLCI
The main index, called the Kuala Lumpur
Composite Index (KLCI) passed the 1,000
milestone in 2006, and in June 2007 held a
market capitalization of US $307 billion.
The market operations are divided into a
Securities Exchange, a Derivatives Exchange,
and an Offshore Exchange.
Larger companies are listed on the Bursa
Malaysia Securities Main Board, medium sized
companies on the Second Board, and high
growth and technology companies on the
MESDAQ market. There is also a separate
board for offshore companies. Futures and
options contracts are traded on the
Derivatives Exchange, operated by Bursa
Derivatives. These capital markets are
regulated by various acts of parliament. The
network of holding companies also develops
and distributes comprehensive market
information products and services.
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