Kuala Lumpur Stock Exchange (KLSE) – Analysis, Importance & Price

Banking & FinanceFinance ManagementGrowth & Empowerment

The old name of a Malaysian stock exchange situated in the capital of Kuala Lumpur is the Kuala Lumpur Stock Exchange (KLSE). The KLSE was founded in 1930 with the goal of facilitating the exchange of Malaysian securities. Over the years, the exchange's name has changed multiple times, but it is today known as Bursa Malaysia.

The KLSE is among ASEAN's largest stock exchanges, allowing traders to trade equities, exchange-traded funds (ETFs), overseas Islamic assets, and other securities.

Key Points Briefly

  • The Kuala Lumpur Stock Exchange has changed its name several times, and presently known as Bursa Malaysia, is a Malaysian stock exchange.

  • It is fully automated and one of the largest exchanges in the Association of Southeast Asian Nations.

  • The exchange lists stocks, exchange-traded securities, offshore Islamic assets, and other products.

  • The FTSE Bursa Malaysia KLCI is the exchange's flagship index, and it includes the top 30 businesses listed on the Bursa Malaysia Exchange.

The Kuala Lumpur Stock Exchange: An Overview (KLSE)

The Kuala Lumpur Stock Exchange is currently renamed as Bursa Malaysia, as previously stated. Clearing, trading, listing, depository, and settlement services are all available through the exchange, which is fully integrated. In late 2008, it launched a completely automated trading system.

900 companies can use the market to raise funds through a variety of economic activities, according to the exchange's website. The Kuala Lumpur Composite Index (KLCI), now known as FTSE Bursa Malaysia KLCI, is its flagship index, and it is made up of the top 30 firms listed on the Bursa Malaysia Exchange.

As the country has vastly Muslim population, it implements a shariah law and also has promoted it through their promotional teams. Components of these includes Islamic banking and trading that are compliant according to the Islamic law. This has come into existence from the year 2009.

Important Points to Consider about Bursa Malaysia

Short-selling is now limited to equity-based exchange traded funds, although this may vary in the future. Bursa Malaysia issued a discussion document in July 2018 seeking public opinion on a planned ETF change.

This call comes after the Securities Commission Malaysia (SC), Bursa Malaysia, and other market participants formed an ETF task group to make recommendations aimed at increasing investor interest in ETFs. The task force's recommendations suggested the inclusion of ETFs, such as −

  • ETFs that invest in futures

  • ETFs with a high leverage

  • ETFs that trade in the opposite direction of the market

  • Commodity ETFs with physical backing

  • ETFs that are made up of synthetic components.

raja
Published on 11-Aug-2021 09:13:05
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