Annual Report 2003 - Bursa Malaysia Berhad

Transcription

www.klse.com.my
Annual Report 2003
KUALA LUMPUR STOCK EXCHANGE BERHAD
(30632-P)
K U A L A K LU UA ML PA U LR U S
M TP OU CR K S ET XO CC HK A E
N XG CE H BA EN RG HE A B
D E R H A D
A N N U A L
R E P O R T
2 0 0 3
contents
• Corporate Information
• KLSE Highlights
12 - 45
• Market Report
46 - 50
• KLSE Composite Index
Chart for Year 2003
52 - 53
• Shareholding and Trading on KLSE
54 - 55
• KLSE Berhad Board Members
58 - 59
• Group Board Members
60 - 64
• Board of Governors
65
• LFX Committee Members
66
• KLSE Group Management
67 - 76
• KLSE Group Company Report and Profiles
77 - 97
• Financial Statements
1
8
• Executive Chairman’s Statement
• Calendar of Events
3
4-7
98 - 102
106 - 148
• KLSE Committees
149
• MSEB Committees
150
• KLSE Monthly High, Low
And Closing Indices
151 - 153
• Market Indicators
154 - 161
• New Companies Listed
on KLSE and MESDAQ Market
164 - 167
• Membership Report
168 - 171
• KLSE Members
172 - 177
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
From One Journey To Another
The Stock Exchange of
Malaysia in Bangkok
Bank building, 1967
Kuala Lumpur Stock
Exchange in Damansara
Heights, 1973
Kuala Lumpur Stock
Exchange in Exchange
Square, Damansara
Heights, 1987
Kuala Lumpur Stock Exchange in Exchange Square,
Bukit Kewangan, 1997
2
3
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2 0 0 3
Corporate Information
KUALA LUMPUR STOCK
EXCHANGE BERHAD (KLSE)
MALAYSIA SECURITIES
EXCHANGE BERHAD (MSEB)
MALAYSIA DERIVATIVES
EXCHANGE BERHAD (MDEX)
LABUAN INTERNATIONAL
FINANCIAL EXCHANGE INC. (LFX)
(Company No. 30632-P)
(Company No. 635998-W)
(Company No. 261937-H)
(Company No. LL02032)
Board of Directors
Dato' Mohammed Azlan Hashim
(Executive Chairman)
Yusli Mohamed Yusoff
(Chief Executive Officer)
Datuk Mohaiyani Shamsudin
(Deputy Chairman)
Tan Kim Leong, JP
Abdul Kadir Hj. Md. Kassim
Abdul Jabbar Abdul Majid
Peter Leong Tuck Leng
Datin Mariam Prudence Yusof
Abdul Rauf Ramli
Board of Directors
(Chairman)
Tan Kim Leong, JP
Board of Directors
Dato’ Mohammed Azlan Hashim
Dato’ Seri Hwang Sing Lue
YAM Tunku Dato' Seri
Nadzaruddin Tuanku Ja'afar
Alvin Kwan Wing Yew
Md. Nor Ahmad
Mohd Zain Omar
Wong Fook Wah
Board of Directors
(Chairman)
Dato’ Ahmad Johan Raslan
Dato’ Dr. Awang Adek Hussin
Encik Md. Nor Ahmad
Dato’ Noorazman Abd Aziz
Dr Zaha Rina Zahari
Alternate Director
Khairussaleh Ramli (alternate to
Dato' Mohammed Azlan Hashim &
Md Nor Ahmad)
Resident Company Secretary
Azizan Mohd Som
Chief Operating Officer
Chief Regulatory Officer
Md. Nor Ahmad
Company Secretary
Azman Shah Md. Yaman
Joint Company Secretary
Yong Hazadurah Md Hashim
Auditors
Messrs. Ernst & Young
Tax Consultants
Bankers
Bumiputra-Commerce Bank Berhad
HSBC Bank Malaysia Berhad
Malayan Banking Berhad
Southern Bank Berhad
Registered Office
Kuala Lumpur Stock Exchange Berhad
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
Company Secretary
Auditors
Tax Consultants
Bankers
Registered Office
Malaysia Securities Exchange Berhad
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
Company Secretary
Azman Shah Md Yaman
Auditors
Tax Consultants
Bankers
RHB Bank Berhad
Hong Leong Bank Berhad
Registered Office
Malaysia Derivatives Exchange Berhad
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
Azman Shah Md Yaman
Exchange Committee Members
(Chairman)
Mohd Nasir Ali
Prof. Madya Dr. Mohd Daud Bakar
Md. Nor Ahmad
Vaseehar Hassan Abdul Razack
Raymond Wong
Jeremy C. Camps
Louise Paul
Auditors
Bankers
Citibank Berhad
Citibank Malaysia (L) Ltd.
Maybank International (L) Ltd.
Registered Office
Labuan International Financial
Exchange Inc.
Unit Level 7(B), Main Office Tower
Financial Park Labuan, Jalan Merdeka
87000 Labuan Federal Territory, Malaysia
Tel: 087-451359 Fax: 087-451379
Resident Company Secretary’s Office
ZI Labuan Trust Company Sdn Bhd
Unit Level 13(E), Main Office Tower
Financial Park Labuan, Jalan Merdeka
87000 Labuan Federal Territory, Malaysia
Tel: 087-451688 Fax: 087-453688
4
SECURITIES CLEARING
AUTOMATED NETWORK SERVICES
SDN. BHD. (SCANS)
MALAYSIAN DERIVATIVES
CLEARING HOUSE BHD (MDCH)
(Company No. 358677-D)
(Company No. 109716-D)
Yong Hazadurah Md. Hashim
Board of Directors
Yusli Mohamed Yusoff (Chairman)
Md. Nor Ahmad (resigned w.e.f.
5 January 2004)
Mohd Ridzal Mohd Sheriff
(Chief Executive Officer)
Alvin Kwan Wing Yew
Ahmad Hizzad Baharuddin
Laren Tan Kian Seng
(resigned w.e.f. 5 January 2004)
Ng Chin Leng
Noripah Kamso
Raghbir Singh Bhart
Steven Lai Choon Lim
Dr Zaha Rina Zahari
Khairussaleh Ramli
Auditors
Company Secretary
Azman Shah Md Yaman
Tax Consultants
Bankers
Alliance Bank Berhad
Southern Bank Berhad
Standard Chartered Bank (M) Berhad
Auditors
PricewaterhouseCoopers
Registered Office
Securities Clearing Automated Network
Services Sdn. Bhd.
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
Bankers
Citibank Berhad
RHB Bank Berhad
ABN Amro Berhad
HSBC Bank Malaysia Berhad
Board of Directors
Tan Kim Leong, JP
Dato’ Seri Hj. Megat Najmuddin
Datuk Seri Dr Hj. Megat Khas
Abdul Rauf Ramli
Company Secretary
Tax Consultants
PricewaterhouseCoopers
Registered Office
Malaysian Derivatives Clearing
House Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
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2 0 0 3
MALAYSIAN CENTRAL DEPOSITORY
SDN. BHD. (MCD)
Company Secretary
Azman Shah Md Yaman
(Company No. 165570-W)
Board of Directors
Abdul Rauf Ramli
Datuk Amirsham A. Aziz
Ahmad Subri Abdullah
Chan Guan Seng
Tan Kim Leong, JP
Datuk Azlan Mohd Zainol
Company Secretary
Auditors
Tax Consultants
Bankers
Registered Office
KLSE Information Services Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
Auditors
Tax Consultants
KLSE TECHNOLOGY SDN BHD
Bankers
Alliance Bank Berhad
Board of Directors
(Chairman)
Ungku A. Razak Ungku A. Rahman
(Executive Director)
Dato' Seri Hwang Sing Lue
Abdul Hamid Sh. Mohamed
(Resigned w.e.f. 1 December 2003)
Md. Nor Ahmad
(Resigned w.e.f. 5 January 2004)
Ravindran Navaratnam
Registered Office
Malaysian Central Depository Sdn. Bhd.
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
Registered Office
KLSE Technology Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
KLSE TRAINING SDN BHD
Formerly known as I-MESDAQ Sdn Bhd
(Company No. 520353 U)
Board of Directors
(Chairman)
Tan Kim Leong, JP
Ahmad Tajuddin Abdul Carrim
Md Nor Ahmad
Company Secretary
Azman Shah Md Yaman
(Company No. 319465 T)
Board of Directors
(Chairman)
Tan Kim Leong, JP
Md. Nor Ahmad
Abdul Razak Mohd Amin
Board of Directors
Md Nor Ahmad
(Resigned w.e.f. 5 January 2004)
Ungku A. Razak Ungku A. Rahman
Auditors
Tax Consultants
Bankers
Registered Office
KLSE Property Management Sdn. Bhd.
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
YAYASAN BSKL (YBSKL)
(Company No. 464552-M)
Auditors
Board of Governors:
(Chairman)
Datuk Hj. Abdul Karim Haron
Dato’ N. Sadasivan A/L N. N. Pillay
Dato’ Che Mohd Annuar
Che Mohd Senawi
Tan Sri Dato’ Dr. Abdullah Sanusi
Hj. Ahmad
(Ceased w.e.f. 29 December 2003)
Dato’ Mohd Salleh Abdul Majid
(Resigned w.e.f. 1 May 2003)
Othman Abdullah
Tax Consultants
Company Secretary
Azman Shah Md Yaman
Bankers
Nil
Registered Office
KLOFFE Information Systems
Sdn. Bhd.
Bukit Kewangan,
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
Auditors
Company Secretary
Azman Shah Md Yaman
Bankers
Registered Office
Yayasan BSKL
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
Auditors
Tax Consultants
Company Secretary
Azman Shah Md Yaman
Bankers
Formerly known as KLSE-Bernama
Real-Time Information Services Sdn Bhd
(KULBER)
(Company No.152961-H)
Registered Office
KLSE Training Sdn. Bhd.
Bukit Kewangan, 50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
Auditors
KLOFFE INFORMATION SYSTEMS
SDN. BHD. (KLOFFE INFO)
(Company No. 147792-H)
Company Secretary
Azman Shah Md Yaman
KLSE INFORMATION SERVICES SDN.
BHD. (KLSE IS)
Board of Directors
(Chairman)
Md. Nor Ahmad
(resigned w.e.f. 1 December 2003)
Fathi Ridzuan Ahmad Fauzi
6
(Company No. 213411-K)
Bankers
Bank Utama (M) Berhad
KLSE PROPERTY MANAGEMENT
SDN. BHD. (KPM)
Tax Consultants
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KLSE Highlights
No. of listed companies
Total market valuation (RM billion)
1000
700
906
640.28
865
809
800
745
572.31
600
532.04
773
481.62
500
403.49
600
400
300
400
200
200
100
140
Dec 2003
Dec 2002
June 2001
Dec 2003
Dec 2002
June 2001
June 2000
June 1999
Total trading volume (billion units)
June 2000
June 1999
0
0
Total trading value (RM billion)
350
304.71
124.20
120
300
106.44
101.64
100
250
206.34
200
Jan 2003 to
Dec 2003
0
Jul 2001 to
Dec 2002
0
Jul 2000 to
Jun 2001
50
Jul 1999 to
Jun 2000
20
Jul 1998 to
Jun 1999
8
100
34.17
88.90
Jul 1999 to
Jun 2000
40
135.93
Jan 2003 to
Dec 2003
150
Jul 2001 to
Dec 2002
60
193.20
Jul 2000 to
Jun 2001
72.02
Jul 1998 to
Jun 1999
80
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From
Progress
to
Success
Expanding Value Investments
• Diversified Sectors and Instruments
• Growing Choice of Securities Investments
• Sound Economic Fundamentals
• Good Value, High Growth Companies
• Efficient Capital Mobilisation
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Executive Chairman’s Statement
From One Journey
To Another
It is in the course of life, that when one journey ends, another begins.
One such journey began in a year that challenged our faith–1998. Our faith in
rebuilding confidence in our economy and our markets after the financial crisis of
1997. In 1998, the question was: Do we still have faith? Do we only see markets
as they are, without seeing how they were, how they may yet become?
Through the challenges and changes of the intervening years, some may have
lost a little of that faith. For others, faith took time to restore. However, there were
enough of us amongst industry and market participants who decided to take
action in order for others to continue to have faith in us, in our markets and our
economy.
Executive Chairman
With the objective of restoring confidence, strengthening the securities industry
and capital market and maintaining a competitive position internationally, a series
of actions were undertaken for the securities industry and capital market in the
intervening years commencing in 1998 leading to the demutualisation of the
exchange in January 2004.
12
13
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L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
The performance of Kuala Lumpur Stock Exchange (KLSE) in the financial year ended 31
Thus, a journey begun in times of uncertainty and doubt, came to a close in a year
December 2003 underscored the key initiatives implemented thus far. The Kuala Lumpur
optimistic with renewal and vigour. A year that will be renowned in the country’s history
Stock Exchange Composite Index (KLSE CI) closed the year at 793.94, posting a gain of
as one of successful transitions and of implementing changes to overcome challenges.
147.62 points or 22.84% compared to 646.32 at end-2002. Market capitalisation on 31
December was RM640.28 billion, an increase of RM158.66 billion or 32.94% compared
to RM481.62 billion at the end of 2002. Total volume transacted on the KLSE surged by
2 0 0 3
The year 2003 marked the beginning of a new journey of transformation for nation, industry
and market. From success to achievements, from Kuala Lumpur Stock Exchange to Kuala
Lumpur Stock Exchange Bhd, from one journey to another.
97.96% to 124.20 billion units compared to 62.74 billion units in 2002. This translated
into an average daily volume of 504.88 million units in 2003 compared to 253 million units
1. Demutualisation
in 2002. Meanwhile total value traded increased by 56.48% to RM206.34 billion
compared to RM131.86 billion in 2002 or an average daily value of RM838.77 million in
Demutualisation is a process of change – an enabler for the exchange to broaden its
2003 in contrast to RM531.68 million in 2002.
interests and capability to better represent the needs and requirements of all
stakeholders, the industry, the capital market and the nation, and respond faster and
During the year, 58 new companies were listed, the highest number in 5 years. Of the 58
adapt more quickly to changes in the market place.
newly listed companies, 16 companies were listed on the Main Board, 22 on the Second
- Dato’ Mohd Azlan Hashim
‘Briefing on Demutualisation’
21 November 2002
Board and 20 on the MESDAQ Market. In 2002, total number of companies listed were
51, with 22 companies each on the Main Board and Second Board and 8 on the
MESDAQ Market.
Demutualisation, from the legal perspective, is the conversion of KLSE from a non-profit
mutual entity limited by the guarantee of its members, into a public company limited by
Kuala Lumpur Stock Exchange Market Performance: 1998-2003
shares. This was successfully completed on 5 January 2004 with the successful
1998
1999
2000
2001
2002
2003
conversion of KLSE to become the exchange holding company – Kuala Lumpur Stock
586.13
812.33
679.64
696.09
646.32
793.94
Exchange Berhad (KLSE Bhd) and its wholly owned subisidary Malaysia Securities
Market Capitalisation
(RM Billion)
374.5
552.7
444.4
465.0
481.6
640.3
Average Daily Volume
(Million Units)
247.4
363.5
309.1
225.2
254.0
504.8
Average Daily Value
(RM Million)
496.6
805.0
1,000.2
393.5
533.8
838.7
KLSE CI (points)
Total Number of
Listed Companies
Exchange Berhad (MSEB) – the operating stock exchange.
From a business strategy perspective, demutualisation, supported by business
transformation initiatives, is an enabler and facilitator for the KLSE Group to further
enhance its corporate, organisational and governance structures to respond to the
736
757
795
812
865
906
challenges of a globalising and increasingly competitive capital market.
Demutualisation places the KLSE Group in a better position to respond to the collective
interests of its broader stakeholders and consequently to be more customer-driven and
market-oriented. It will also facilitate the enhancement of liquidity resulting in a more
attractive market place for the trading of securities, thereby benefiting all industry and
market participants, including the government, economy and the capital market.
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• Governance Structure
R E P O R T
2 0 0 3
The governance structures for the Exchanges of the Group have also been defined in
The governance structure of the demutualised exchange reflects the best commercial
order to ensure that Board of Directors within the group are guided and driven by the
and governance practices. To achieve this objective, the demutualised exchange group
same standards to enhance corporate governance practices, transparency, public
has adopted a single and consolidated governance structure for the whole
interest and international best practices.
demutualised exchange group.
Governance Structure of Exchanges
This is via the creation of a Board of Directors where representation is derived not just
Malaysia Securities Exchange Berhad (MSEB)
from shareholders, but also public interest representatives. This ensures the objectivity
Board of Directors
MSEB
of the demutualised exchange in performing its regulatory functions, whilst pursuing its
business objectives.
Whilst the Board of Directors will be responsible for ascertaining policies of the
MSEB Listing
Committee
company, Board Committees will be delegated powers to perform specific executive
MSEB
Disciplinary
Committee
MSEB
Participation
Committee
MSEB
Compensation
Fund
functions of the Board of Directors. What is important to note is that the governance
structure has incorporated essential elements of corporate governance practices,
transparency, public interest policies and international best practices.
Malaysia Derivatives Exchange Berhad (MDEX)
Board of Directors
MDEX
KLSE Bhd Governance Structure
Board of Directors
Board Committees
Disciplinary
Committee
Participation
Committee
Consultative Panels
MDEX
Fidelity
Committee
Audit
Securities
Market
Nomination and
Compensation
Labuan International Financial Exchange Berhad (LFX)
Investment
Advisory
Derivatives
Market
Risk
Management
Board of Directors
LFX
LFX Exchange
Committee
Clearing,
Settlement and
Depository
Appeals
Listing
Committee
Licensing
Committee
Disciplinary
Committee
Executive
Committee
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B E R H A D
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2 0 0 3
As the demutualised exchange moves forward, its business strategy will be focused on
• Group Management Structure
The corporate structure of the demutualised exchange group has been established with
the main objective to enable more effective and efficient management of the
organisation, in balancing between commercial and regulatory functions and obligations
three strategic principles:
• Boost market liquidity and velocity
• Strengthen revenue base by enhancing products and services
• Achieve operational scale and efficiency
of the demutualised exchange.
The holding company has been established to house all of the subsidiaries of the
KLSE BHD – 3 KEY STRATEGIES, MOVING FORWARD
demutualised exchange. There are four core business units of the group, namely –
I. Boost Market Liquidity and Velocity
Exchanges, Clearing, Settlement & Depository, Information Services and Technology.
The regulatory functions of the group are centralised and independent of the business
units. The regulatory unit is headed by a Chief Regulatory Officer. Common support
services, such as Finance & Strategy, Corporate Services and Information Technology,
KLSE Bhd will boost market liquidity and velocity through three main initiatives:
First, it will aggressively market and promote itself to a wider pool of market
participants with diverse and complementary trading strategies, including relying
on strategic alliances with other exchanges to attract new participants.
have been established and centralised to provide backing to the business units and
Second, it will introduce innovative market models and enhanced order types
operations of the group.
through its new trading platform, to improve price discovery, encourage trading
The new management structure closely supports the full function of the demutualised
activity, and enhance information accessibility.
exchange in offering the consolidated services for equity, derivatives and offshore
Third, it will broaden access to the market to encourage direct participation from
investments, together with all its trade related services.
domestic and international investors and intermediaries who can direct new or
more trading volume to the market. However, this will be implemented in a phased
KLSE Bhd Group Management Structure
manner to retain the stability of the local stockbroking industry, in line with the
Head, Internal
Audits
Chief
Executive Officer
national industry consolidation policy.
Head,
Human Resources
Chief Regulatory
Officer
Head,
Group Legal
Chief Financial
Officer
Company Secretary
& Compliance
Chief Information
Officer
Chief
Operating Officer
Head,
Exchange
18
Head, Clearing
Settlement &
Depository
Head,
Information
Services
Head,
Exchange
Systems
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• Listing of Kuala Lumpur Stock Exchange Berhad
KLSE BHD – 3 KEY STRATEGIES, MOVING FORWARD
(CONTD.)
II. Strengthen revenue base by enhancing products and services
KLSE Bhd recognises the importance of being more innovative in introducing
products and services to continue to meet the increasing sophistication and
demand of its customers, and to create a more diverse revenue base that is not
too dependent on equity trading volumes.
The timing of the eventual listing would depend on prevailing market conditions, as
prevalent in any capital market exercises. The listing of KLSE Bhd will facilitate greater
diversity of exchange ownership, thus allowing for enhanced public representation in
the governance of the demutualised Exchange. Upon listing, KLSE Bhd will have a
wider capital base with which to expand and further develop its scope and scale of
operations. KLSE Bhd would also be continually subject to high levels of transparency
It will be more focused on market innovation, and will collaborate with all parties
and accountability, to the benefit of its stakeholders.
to launch new products such as new and enhanced derivative contracts and
exchange-traded funds. In addition, it also plans to introduce new services such
2. Market Infrastructure
as real time and value-added information services, and other listing services.
In enhancing market infrastructure, KLSE will continue to deploy relevant and
The current market framework can be enhanced by streamlining and recognising
the different market segments according to the needs of market participants, and
to further improve clarity and understanding of the market.
III. Achieve operational scale and efficiency
The exchange industry is one where scale is a very important factor. To this end,
KLSE Bhd plans to pursue various initiatives to achieve economies of scale and
applicable technology to better serve the Malaysian Securities industry towards
achieving greater operational scale, efficiency, reliability and cost effectiveness.
‘Briefing to Stockbroking Member Companies on Technology Alliance’
18 July 2003
In contributing towards a more efficient investing environment, KLSE continued with
initiatives to improve market infrastructure.
streamline its operational efficiency. This includes embarking on its next
generation technology platform through a strategic partnership, and consolidating
• Standardisation of Board Lots to 100 Units
equities and derivatives trading and clearing systems to achieve capital efficiency.
On 26 May 2003, KLSE successfully completed and implemented the standard board
The Exchange has also been streamlining its organisational resources and will
lot of 100 units for all securities listed and quoted on the KLSE.
continue to do so, taking advantage of automation opportunities from the new
The rationale for standardisation of board lot to 100 units is essentially to eliminate the
technology system. However, while it plans to reduce staff requirements in various
multiples board lot of 1,000 units, 200 units and 100 units into one single board lot of
operational areas, it will continue to selectively increase headcount to inject new
100 units for all securities listed and quoted on the KLSE. The elimination of multiple
critical skills, such as sales and marketing, business development, corporate
board lots reduces confusion among investors and enables easier computation of
finance, technology and risk management.
stock prices for the investors and comparison of one’s portfolio value. Other objectives
for the introduction of a single board lot of 100 units is to reduce investor holdings of
odd lots. These odd lots shares which is less than 1,000 units are now more
marketable with the board lot size of 100 units. This will eventually creates greater
opportunity for retail investing leading to wider shareholding spread of securities and
more efficient price discovery, thus benefiting investors, issuers and intermediaries alike.
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2 0 0 3
The standard board lot of 100 units was implemented in 3 stages commencing early
April 2003 and successfully completed within 2 months. The phased approach
strategy was to ensure the rollout was carried out in a smooth and orderly manner and
to avoid unnecessary confusion to the market participants.
3. Regulations
In any system of checks and balances, everyone has to be involved.
Lest we forget, given time and opportunity - the irregular is always on the move,
Upon full implementation on 26 May 2003, total odd lots reduced to 39.5 million. With
evolving, testing the parameters of proper conduct for any loopholes, any
Standard Board Lot of 100 units, there was a reduction of odd lots from 578.9 million
weaknesses.
(as at 4 April 2003) to 39.5 million (as at 26 May 2003) i.e. a total of 539.4 million shares
became more marketable. This represented a 93.2% reduction in odd lots. The bulk of
reduction in odd lots was in the Main Board, accounting for 80% of the overall
reduction.
For transparency and proper conduct to quickly become business practice and
corporate culture - all stakeholders - Industry participants, company directors,
corporate executives and of course regulators - must work collectively and
contribute positively towards the establishment of better corporate governance.
Trading activities have increased significantly after implementation of the standard
Dato’ Mohd Azlan Hashim
‘International Conference on Corporate Governance
- Trends and Challenges in the Millennium’
29 October 2002
board lot, assisted in part by positive market sentiments, i.e. the government stimulus
package, overall global equity sentiment and end of SARS and the Iraq war.
• Common Trading Platform
As a front line regulator, KLSE continues to strengthen its efforts through balanced,
To continue to deploy relevant and applicable technology to improve market
efficient and effective regulation of the markets and its participants to provide a secure,
infrastructure, KLSE initiated the development of the Common Trading Platform (CTP).
fair and orderly regulatory environment that fosters investor confidence and enhances
CTP will ensure KLSE’s trading system is equipped with functionality and features
market integrity.
which are on par with major global exchanges. In the long term it will enable KLSE to
In this respect, the Exchange will continue to improve its efficiency in surveillance,
achieve the architecture goals of an integrated package solution to standardise the
monitoring for compliance and enforcing the Listing Requirements.
technology and platforms for the trading, clearing and settlement systems. This will
ensure IT delivery that is more reliable, available and serviceable and aligned to the
business strategy to create opportunities.
• Enforcement Actions
KLSE has completed 425 investigation cases with actions taken on 201 cases for
various breaches of the Listing Requirements during the financial year ended 31
In 2003, KLSE completed the evaluation of CTP solutions; identification of ATOS
Euronext (AEN) as the potential solution provider followed by the signing of the Heads
December 2003 whilst during the 18-month period ended 31 December 2002, a total
of 437 investigation cases were completed for which actions were taken on 289 cases.
of Agreement (HOA) between KLSE and AEN in July 2003. The HOA covers the CTP
implementation, the outsourcing study and creation of a joint venture IT company
between KLSE Bhd and AEN. By the end of 2003, KLSE with AEN had completed the
implementation study for the CTP and work on the design and development has
commenced, with a phased roll out program beginning at the end of 2004.
22
23
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Status of Investigation Cases on Public Listed Companies as at 31 December 2003
Type of Cases
1
2
3
Failure to comply with the policy on
Response to Unusual Market Activity/
Failure to promptly provide information
or documents to the Exchange
- Sections 99, 338 of MBLR
- Clause 1.18 of SBLR
- Part F of Chapter 9 of the LR
- Part IV of Guidenance Notes 1 of
Chapter 7 of MMLR
-
Failure to comply with the share buy
back guidelines
Chapter 12 of the LR
1
Cases
Total Cases
iniated
handled
during
during the
the
financial
financial
year ended
year ended 31 December
31
2003
December
2003
2
8
129
2
9
273
Cases
Cases
completed
outstanding
during the
as at 31
financial year December
ended 31
2003
December
2003
(1)
(9)
(208)
Type of Cases
11
Failure to comply with requirements
on dealings in securities (by directors
and principal officers)
- Chapter 14 of LR
- Chapter 12 of MMLR
12
4
on Transactions
- Part 4 of the MBLR/ Part 5 of the SBLR
- Chapter 10 of the LR
- Chapter 4 and 6 of MMLR
28
33
61
(54)
7
5
Failure to comply with Approved
Accounting Standards
- Section 65 of MBLR
- Clause 3.27 of the SBLR
- Paragraph 9.26 of the Listing
Requirements
2
4
6
(5)
1
6
Failure to comply with the
requirements on Financial Conditions
and Level of Operations
- Paragraph 8.14 (PN4); and
- Paragraph 8.16 (PN10) of the LR
11
5
16
(14)
2
7
Failure to comply with the Definitions
and Interpretation requirements
-
8
Failure to comply with General
requirements
- Chapter 2 of LR
Cases
Brought
Forward
from
Financial
period
ended 31
December
2002
69
(64)
5
for Advisers and Sponsors
- Chapter 14 of MMLR
-
1
1
(1)
-
13
Failure to comply with Corporate
Governance
- Chapter 15 of LR
-
2
2
(2)
-
14
Suspension, Withdrawal, De-Listing
and Enforcement
- Chapter 16 of LR
2
44
46
-
46
15
Failure to release Quarterly Reports
on time
- Section 56A of MBLR / Clause 3.20A of
SBLR
- Paragraph 9.22(1) of LR
13
7
20
(8)
12
16
Failure to furnish Annual Audited
Accounts on time
- Section 60(b) of MBLR / Clause 3.22 (b)
of SBLR
- Paragraph 9.23(b) of LR
17
17
34
(27)
7
17
Failure to furnish Annual Reports on time
- Section 60(a) of MBLR / Clause 3.22(a)
of SBLR
- Paragraph 9.23(a) of LR
8
10
18
(13)
5
257
326
583
(425)
158
65
LR: Listing Requirements
MBLR: Main Board Listing Requirements
8
(7)
Cases
Cases
completed
outstanding
during the
as at 31
ended 31
2003
December
2003
41
Total
8
Cases
Total Cases
iniated
handled
during
during the
the
financial
financial
year ended
31
2003
December
2003
28
-
144
2 0 0 3
Status of Investigation Cases on Public Listed Companies as at 31 December
2003 (Contd.)
1
on Corporate Disclosure Policy and
Immediate Announcements
- Sections 22-41, 335-341(excl.338) of
the MBLR
- Clause 1.18, 3.4,3.11-3.16 of the SBLR
- Chapter 9 (except for Part F,
Paragraphs 9.22- 9.26 of the LR
- Part IV and V of Chapter 7 of MMLR
MMLR: Mesdaq Market Listing Requirements
SBLR: Second Board Listing Requirements
1
Status of Investigation Cases on Public Listed Companies: 1998 - 2003
2
7
9
(6)
3
9
Failure to comply with New Issues of
Securities
- Chapter 6 of LR
-
4
4
(3)
1
10
Failure to comply with Continuing
Listing Obligations
- Chapter 8 of LR
- Chapter 7 (except for Part IV and V) of
MMLR
1
4
5
(3)
2
Sub-total
24
Cases
Brought
Forward
from
Financial
period
ended 31
December
2002
R E P O R T
193
204
393
(310)
83
1998
1999
2000
2001
2002
2003
Cases brought forward for FYE
N/A
11
35
108
249
257
Cases initiated during FYE
N/A
98
200
373
445
326
Total Cases Handled
N/A
109
235
481
694
583
Cases completed
N/A
74
127
(232)
(437)
(425)
Cases outstanding
11
35
108
249
257
158
25
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Enforcement action taken against Public Listed Companies for the financial
year ended 31 December 2003
Type of Cases
1
2
3
4
5
Public
Reprimand
Public
Reprimand
& Fine
Total
Fine
RM
Failure to comply with the policy on
Response to Unusual Market Activity/
Failure to promptly provide information
or documents to the Exchange
- Sections 99, 338 of MBLR
- Clause 1.18 of SBLR
- Part F of Chapter 9 of the LR
- Part IV of Guidance Notes 1 of
Chapter 7 of MMLR
1
-
-
-
1
-
Failure to comply with the share
buy back guidelines
1
Failure to comply with requirements on
Corporate Disclosure Policy and
Immediate Announcements
- Sections 22-41, 335-341(excl.338) of
the MBLR
- Clause 1.18, 3.4,3.11-3.16 of the SBLR
- Chapter 9 (except for Part F,
Paragraphs 9.22- 9.26 of the LR
- Part IV and V of Chapter 7 of MMLR
25
on Transactions
- Part 4 of the MBLR/ Part 5 of the SBLR
- Chapter 4 and 6 of MMLR
4
3
33
23
2
37
3
8
4
-
6
103
34
2
-
Failure to comply with the requirements
on Financial Conditions and Level
of Operations
- Paragraph 8.14 (PN4); and
- Paragraph 8.16 (PN10) of the LR
2
4
7
Definitions and intrepretation
- Chapter 1 of LR
1
6
-
-
7
-
8
Failure to comply with General
requirements
- Chapter 2 of LR
-
-
1
1
2
32,000
Failure to comply with New Issues
of Securities
- Chapter 6 of LR
-
-
1
-
1
-
Sub-total
35
70
47
13
165
307,000
Caution
& Impress
Private
Reprimand
Public
Reprimand
Public
Reprimand
& Fine
Total
Fine
RM
Failure to comply with Continuing
Listing Obligations
- Chapter 8 of LR
- Chapter 7 (except for Part IV and V)
of MMLR
1
-
-
-
1
-
11
Failure to release Quarterly Reports
on time
- Section 56A of MBLR / Clause 3.20A
of SBLR
- Paragraph 9.22(1) of LR
-
-
-
6
6
164,250
12
Failure to furnish Annual Audited
Accounts on time
- Section 60(b) of MBLR / Clause 3.22 (b)
of SBLR
- Paragraph 9.23(b) of LR
-
-
4
16
20
405,500
13
Failure to furnish Annual Reports on time 1
- Section 60(a) of MBLR / Clause 3.22(a)
of SBLR
- Paragraph 9.23(a) of LR
-
4
4
9
68,750
Total
70
55
39
201
945,500
75,000
200,000
Number of cases
10
-
1
9
-
-
Failure to comply with Approved
1
Accounting Standards
- Section 65 of MBLR
- Clause 3.27 of the SBLR
- Paragraph 9.26 of the Listing Requirements
6
26
Type of Cases
Private
Reprimand
2 0 0 3
Enforcement action taken against Public Listed Companies for the financial
year ended 31 December 2003 (Contd.)
Number of cases
Caution
& Impress
R E P O R T
37
LR - Listing Requirements
MMLR - Mesdaq Market Listing Requirements
MBLR - Main Board Listing Requirements
SBLR – Second Board Listing Requirements
Enforcement actions taken against Public Listed Companies: 1998 - 2003
Types of cases
3
-
9
-
No. of cases
1998
1999
2000
2001
2002
2003
Caution & Impress
N/A
1
23
19
38
37
Private Reprimand
N/A
13
40
37
74
70
Public Reprimand
N/A
14
19
26
52
55
Public Reprimand & Fine
N/A
28
42
37
125
39
Total
N/A
56
124
119
289
201
27
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
• Practice Note No 4/2001 – Companies with Unsatisfactory Financial Condition
Since the introduction of Practice Note No 4/2001 (PN4) in February 2001 until
R E P O R T
PN4 Companies – De-listing Status as at 31 December 2003
Total
Main Board
Second Board
23
10
13
55 companies have regularised their financial position whilst 9 companies have been
No. of PN4 Companies that KLSE has
commenced de-listing procedures
delisted. As at 31 December 2003, there were 58 PN4 Companies, of which 33 were
No. of companies de-listed
9
2
7
Main Board companies and 25 were Second Board Companies. These 58 PN4
No. of companies pending disposal of
appeal against de-listing decision
3
3
-
No. of companies that the KLSE will await
the outcome of application to the relevant
authorities
8
3
5
No. of companies pending due process on
de-listing procedures
3
2
1
December 2003, 122 PN4 Companies were identified. Of these 122 PN4 Companies,
Companies are now at various stages of their restructuring with only 9 companies that
have yet to announce an appropriate restructuring plan.
2 0 0 3
PN4 Companies
PN4 Companies as at 31 December 2003
PN4 Companies
Total
Main Board
Second Board
No. of PN4 Companies
58
33
25
No. of companies that have obtained
regulatory approvals of their plans but
pending implementation
32
18
14
No. of companies that have submitted
their plans to the relevant authorities
but pending approvals
17
No. of companies that have not submitted
their plans to the relevant authorities
for approvals
9
The commencement of de-listing procedures against the affected PN4 Companies is
necessary in the interest of continuing investor protection and maintenance of market
integrity.
10
7
However, prior to any decisions on affected PN4 Companies, KLSE continues to accord
due process to the affected PN4 Companies, including allowing these companies an
5
4
opportunity to make representations to KLSE as to why their securities should not be
de-listed from the Official List of the KLSE. Upon due consideration of the matter and
conclusion of the relevant due processes accorded, only then will KLSE make its decision.
On 6 January 2003, KLSE announced the commencement of the de-listing procedures
KLSE continues to closely monitor the restructuring efforts by PN4 Companies with the
against PN4 Companies, which had not submitted their applications to the relevant
aim to hasten the pace of restructuring of the PN4 Companies. It is encouraging to note
regulatory authorities for approval of plans to regularise their financial condition.
that almost half of the PN4 Companies identified have succeeded in regularising their
financial condition whilst the majority of the remaining companies have reached
advanced stages in their plans to regularise their financial condition. With the completion
of the companies’ restructuring plans, there will be greater compliance with the on-going
listing requirements by the public companies listed on KLSE, which will ultimately
promote greater investor confidence in the marketplace.
28
29
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
LISTING REQUIREMENTS - KEY RULE DEVELOPMENTS IN 2003
1.
3. Documents to apply for quotation
Amendments pursuant to Demutualisation
R E P O R T
(CONTD.)
On 29 December 2003, the Exchange announced amendments to the Listing
On 31 October 2003, the Exchange announced amendments to the Listing
Requirements for both the Main Board and Second Board and the MESDAQ
Requirements for the Main Board and Second Board in relation to the
Market in consequence of the demutualisation of KLSE and the transfer of the
documents to be filed with an application for quotation. These amendments
stock exchange business to Malaysia Securities Exchange Berhad ("MSEB").
were implemented in conjunction with the reduced timeframe for initial public
These amendments were also aimed at enhancing the effectiveness and
offerings announced by the Securities Commission on 29 October 2003.
efficiency of regulation of the securities market.
Prior to these amendments, an application for quotation of securities by a listed
The key changes encompassed in the amendments include the following:
• rationalising the provisions for consistency with the relevant amendments to
the securities laws, including the addition and modification of relevant
definitions to cater for MSEB and the demutualised KLSE;
• deleting provisions relating to the preparation of accounts in accordance with
approved accounting standards of Malaysian Accounting Standards Board; and
2 0 0 3
company was required to include a confirmation that all notices of allotment have
been issued and despatched to all successful applicants. Following these
amendments, such confirmation is no longer required. In substitution thereof, the
application for quotation is now required to include an undertaking that all
notices of allotment will be issued and despatched to all successful applicants
prior to the date for listing and quotation of the securities. The said amendments
took effect from 1 December 2003.
• deleting provisions on minimum content of offer and offeree documents in
relation to take-overs and mergers and vetting of the same by MSEB.
These amendments shall take effect from 5 January 2004.
4. Share buy-backs
On 2 October 2003, the Exchange announced amendments to the Listing
Requirements for the Main Board and Second Board in relation to share buy
2.
Subdivision of shares
backs. The key changes encompassed in the said amendments are as follows:
On 17 November 2003, the Exchange announced amendments to the Listing
• for the purposes of renewing an existing shareholder mandate for purchase of
Requirements for both the Main Board and Second Board and the MESDAQ
own shares, listed companies have the option of either issuing a shareholders’
Market to provide a framework for listed companies wishing to undertake a
circular or alternatively issuing a statement (containing the minimum prescribed
subdivision of shares. These amendments provided an avenue for listed
information) accompanying the notice of general meeting;
companies with high priced shares to reduce the par value of their shares and
increase the number of shares, thereby reducing the price of shares to a more
affordable and attractive level.
These amendments, which took effect from 1 December 2003, prescribed
among other things:
• the criteria for eligibility to undertake a subdivision of shares;
• the requirements and procedures involved in relation to a subdivision of shares;
• the minimum content of relevant disclosures pertaining to subdivision of
shares; and the fees payable.
30
• a listed company may appoint up to two Member Companies for the purpose
of purchasing its own shares or reselling treasury shares on the Exchange; and
• more flexibility is given in respect of the resale price of treasury shares.
These amendments, which took effect from 1 November 2003, were aimed at
facilitating listed companies in undertaking share buy-backs by allowing,
amongst others, greater flexibility in respect of the renewal of shareholder
authorisation for purchase of own shares. This in turn will assist in reducing
cost and expediting the process. These amendments were part of the
continuing efforts of the Exchange to enhance expediency and efficiency in
the market.
31
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
4. Intermediary Development & Supervision
(CONTD.)
5. Reduction of timeframe for listing and quotation of securities
On 25 August 2003, the Exchange announced amendments to the Listing
Intermediaries, now more than ever, are facing the challenges of an increasingly
liberalised and competitive marketplace.
Requirements in respect of both the Main Board and Second Board and the
Recognising that investor capital is mobile internationally, more securities markets
MESDAQ Market in relation to the reduction of timeframe for listing and quotation
offer comprehensive and efficient services at lower cost. To remain attractive and
of securities after receipt of the application for quotation, from 3 clear market days
competitive, the Malaysian securities market will need to continually seek efficiency
to 2 clear market days after receipt of the application for quotation together with
and innovation as a means to continued prosperity.
the requisite documents, provided all documents are complete in all respects.
Additionally, cost reduction is not the only factor in enhancing the overall
These amendments, which took effect from 1 September 2003, were part of the
competitiveness of the malaysian securities market. Greater compliance to
continuing efforts of the Exchange to enhance efficiency in the market and reduce
prudential standards and risk management are also significant to enhance
time to market.
confidence and create a more competitive market.
6. Rationalisation with Securities Commission Guidelines
On 25 August 2003, the Exchange announced amendments to the Listing
Dato’ Mohd Azlan Hashim
‘Annual Dialogue, Association of Stockbroking Companies Malaysia’
23 June 2003
Requirements in respect of both the Main Board and Second Board and the
MESDAQ Market for the purpose of rationalisation with the guidelines issued by
the Securities Commission.
The said amendments in respect of the Main Board and Second Board relate to
Just as KLSE continues to enhance regulations, initiatives continue to be developed for
intermediaries to meet the challenges of greater competition.
• Intermediary Development
the following key areas:
A key initiative to further develop intermediaries is the consolidation effort to strengthen
• admission criteria;
the industry to establish a group of well-capitalised domestic stockbroking companies,
• advertisement of prospectuses;
which can provide efficient and cost-effective intermediation services for investors.
• requirements pertaining to call warrants; and
It is envisaged that these stockbroking companies should also be robust and resilient
• requirements pertaining to property trust funds.
in managing risks inherent in the stockbroking business. More importantly, the
The amendments in respect of the MESDAQ Market relate to the advertisement of
consolidation of stockbroking companies is to prepare the industry to face the
abridged prospectuses. These amendments took effect from 1 September 2003
challenges of liberalisation and globalisation.
and were intended to streamline the relevant Listing Requirements with the
In general, mergers of the stockbroking companies pursuant to the consolidation
Securities Commission’s guidelines and to remove duplication of regulation.
programme have progressed in the financial period under review. As at 31 December
2003, there are 38 stockbroking companies in operation, with a network of 55 branch
offices throughout the country.
32
33
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Growth Indicators for Stockbroking Companies: 1998-2003
Consolidated for all
stockbroking
Companies
(as at 31.12.03)
No. of Stockbroking
Companies (SBCs) in
operations
No. of Branches of SBCs
in operations
*
1998
64
1999
64
2000
63
2
6503
6
7.705
2 0 0 3
Growth Indicators for Investor Activity: 1998-2003
2001
2002
Year Todate
1998
1999
2000
2001
2002
2003
No.of nett CDS Accounts
Opened (million)
2.38
2.39
2.74
2.82
3.00
3.23
2003
38
No. of securities immobilised
(billion)
(6 UB)* (6 UB)*
No. of companies prescribed
into CDS
55
(3 UB)*
1
R E P O R T
40
30
52
55
6.494
Book Entry settlement of
traded securities (billion)
1.136
1.174
No. of Ordinary Transfer
transaction (million)
8.387
7.702
7.668
-
2
8
Paid-up Capital
(RM billion)
5791
7.458
Reserves (RM billion)
(857)
(1551)
(0.127)
0.916
Shareholder’s Funds
(RM billion)
4934
4952
7.578
No. of conventional
Electronic Access
Facilities (EAF)**
-
-
-
No. of Electronic Access
Facilities with Permitted
Activities (EAF-PA)***
-
6.566
No of Record of Depositors
(ROD)
155.84 170.65 190.09 201.00 234.33 263.84
738
759
799
822
878
934
168.09 249.66 325.37 380.47 443.56 566.30
6.15
6.82
7.55
8.19
8.93
9.59
33,087 46,113 59,075 72,352 85,850 100,587
INTERMEDIARY DEVELOPMENT-KEY ENHANCEMENTS IN 2003
-
-
-
34
48
• Flexibility granted to Universal Brokers and Non-Universal Brokers
To encourage further growth and expansion for stockbroking companies, flexibility
was granted to Universal Brokers and Non-Universal Brokers, which include:
A Universal Broker is a stockbroking company, which is permitted to offer additional range of products and services within the
capital market including corporate finance and private debt securities. To qualify as a Universal Broker, a stockbroking company
must meet various quantitative and qualitative criteria besides acquiring and merging with 3 or more stockbroking companies. The
emergence of universal brokers is part of the industry strengthening process to be more competitive.
** An EAF is a physical site, location or premises of a Stockbroking Company equipped with electronic devices that facilitate
• futures broking business by a Universal Broker’s licensed futures broking
subsidiary or related company being permitted at the Universal Broker’s branch
offices subject to conditions prescribed by SC.
investors to obtain investment advice and route orders in respect of shares transactions via the Stockbroking Company's frontend trading system.
*** An EAF-PA provides the same facilities as that of an EAF. However,an EAF-PA is also permitted to station Dealer’s
• fund management services by a Universal Broker’s licensed fund management
services subsidiary or related company being permitted at the Universal Broker’s
Representatives at the site and is allowed to handle certain CDS and back-office operations.
branch offices subject to conditions prescribed by SC.
• dealings in debt securities by Universal Broker and Non-Universal Broker. In the
case of Non-Universal Brokers, such dealings are limited to the secondary
market (with the exception of sub-underwriting activities and acting as
placement agent) of listed debt securities or unquoted securities issued by a
public listed company, whilst for Universal Brokers, there are no similar limitations
imposed.
34
35
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
INTERMEDIARY DEVELOPMENT-KEY ENHANCEMENTS IN 2003
A N N U A L
R E P O R T
2 0 0 3
(CONTD.)
• Intermediary Supervision
• Electronic Client Ordering System (ECOS)
In enhancing competitiveness, more stockbroking companies began to make use
of Internet infrastructure in providing ECOS facilities to their clients. Stockbroking
companies' ECOS clients are given the option to access ECOS facilities via any
personal computer with Internet access devices (located anywhere in the world) or
to continue to use the dedicated remote terminal installed within the ECOS Intranet.
As at 31 December 2003, the Exchange has granted approval to 31 stockbroking
companies to implement ECOS.
• Electronic Access Facilities by Universal Brokers
During the period under review, 191 new investigation cases were initiated compared
to 499 cases in the previous financial period, a decline of 62%. Given that there has
been no let up in surveillance and monitoring for compliance, the decline is
encouraging as it represents a greater degree of compliance by participants during the
financial period under review. The drop is mainly in the area of suspected short-selling
and market manipulation cases which recorded a decreasing number of cases with
only 68 cases in the period ended 31 December 2003 compared to 362 cases in the
previous financial year period.
Effective 1 September 2003, investigation cases from Malaysian Central Depository
The guidelines for Universal Brokers to set up electronic access facilities were
(MCD) were transferred to Marker Surveillance & Investigation and a new category of
introduced by SC in August 2001. "Electronic access facility" (EAF) is a generic term
case, ‘Depository Account’ has been included in the statistics. There were 43 cases
which refers to a range of physical sites, locations or premises which contain
brought forward from previous financial year 2002, 65 cases initiated and 28 cases
facilities enabling clients to initiate orders or obtain market or investment advisory
investigated and completed during this financial year.
information electronically. The introduction of the guidelines is in line with SC’s
efforts to create a framework for the orderly and effective implementation of
electronic commerce in the capital market.
Status of Investigation Cases As At 31 December 2003
Category
The SC has on 16 May 2002 issued Practice Note 1- Guidelines on the
Establishment of Electronic Access Facilities by Universal Broker to complement
the aforesaid guidelines on EAFs. In essence, Universal Brokers are permitted to
offer a wider range of services at their EAFs. As at 31 December 2003, 48 EAFs
Cases
Brought
Forward
from
Financial
period
ended 31
December
2002
Cases
Total Cases
iniated
handled
during
during the
the
financial
financial
year ended
31
2003
December
2003
Cases
Cases
completed
outstanding
during the
as at 31
ended 31
2003
December
2003
Buying-in/potential short-selling
25
50
75
53
22
Alleged Defaulter
25
9
34
27
7
Potential misuse of clients’ account
17
12
29
11
18
The additional activities permitted to be undertaken by Universal Brokers at their
Depository Account
43
65
108
28
80
EAF includes :
Other Complaints of Improper Conduct
Against Dealer’s Representative
31
19
50
23
27
• placement of licensed dealer's representatives, futures broker's representatives
Complaint of Improper Conduct Against
Stockbroking Companies
19
8
27
13
14
Potential False Trading / Market Rigging/
Market Manipulation / Insider Trading
191
18
209
66
143
2
10
12
5
7
353
191
544
226
318
have been approved.
and dual licence holders
• opening and closing of trading accounts and/or securities accounts
• receipt and payment of clients monies
General Complaints
Total
• marketing and selling of approved financial products and services provided by
Universal Brokers
• placement and utilisation of broker-front-end and Central Depository System
(CDS) terminals and/or servers at the electronic access facility.
36
37
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Status of Investigation Cases: 1998 - 2003
R E P O R T
2 0 0 3
• Inspections
1998
1999
2000
2001
2002
2003
During the year under review, there were 106 inspections conducted in the following
Cases brought forward
N/A
182
304
371
276
353*
areas:-
Cases Initiated
N/A
460
472
299
499
191
• 16 annual audits on stockbroking companies to determine their compliance with the
Total Cases
N/A
642
776
670
775
544
Cases Completed
N/A
338
405
394
465
226
Cases Outstanding
N/A
304
371
276
310
318
Rules of KLSE;
• 30 audits on Authorised Depository Agents ("ADA") to determine their compliance
with the Rules on Malaysian Central Depository ("MCD")
• 6 Readiness Audit on Universal Brokers (UB) to determine their readiness to
*Including 43 MCD cases brought forward on 1.9.03
commence certain capital market activities; and
Disciplinary Actions on Directors, Dealer’s Representatives and Stockbroking
Companies as at 31 December 2003:
Disciplinary Action
• 18 Readiness Audits to determine the readiness of stockbroking company branches
and Electronic Access Facilities with Permitted Activities, to commence operations.
Directors
Dealer’s
Representatives
Stockbroking
Companies
Struck Off
-
2
-
Fined
-
4
9
The wealth of information and facilities provided by KLSE is an example of its
Suspension
-
-
-
significant investment in one of the principal groups it serves – the investors.
Reprimand
4
21
6
Total
4
27
15
5. Investor Education
KLSE has been unrelenting in its efforts to promote investments in the stockmarket
based on fundamentals and knowledge gained from understanding the market.
Investing hard earned money should not be determined by speculation and rumours.
Disciplinary Actions on Directors, Dealer’s Representatives and Stockbroking
Companies: 1998 - 2003
The continued ability of investors to participate in KLSE, and invest well, is of
paramount importance to the exchange.
Disciplinary Action
38
Directors
Dealer’s
Representatives
Stockbroking
Companies
1998
-
26
-
1999
-
48
6
2000
-
20
-
2001
-
8
2
2002
-
9
16
2003
4
27
15
An informed investor is a more prudent investor.
‘KLSE Investors’ Week 2002’
23 September 2002
39
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
In ensuring investors benefit from the enhancements implemented by KLSE Bhd, the
A N N U A L
R E P O R T
2 0 0 3
6. International Relations
effort to keep investors updated through investor education and investor awareness
programmes continue to be organised.
Markets are not islands. Exchanges are not fortresses. Investor capital is like the sea,
with exchanges as the ports of call – each with the infrastructure, facilities,
For the period under review, a total of 38 informed investing briefings were conducted at
the network of Balai Maklumat BSKL in Johor, Kuantan, Penang and Kuching. These
investment opportunities – for the sea to bring in the right ships . It is therefore best
for exchanges to be ready for the ebb and flow in the tide of investor capital.
briefings attracted in excess of 5,000 participants including investors, shareholders,
industry professionals, teachers and students.
Thus, it is in learning from being part of a global operation, sharing knowledge and
experiences and understanding local requirements - that KLSE has instituted its own
Topics covered ranged from awareness and update on the stockmarket, principles of
measures, going forward.
smart investing, market fundamentals and investor rights. These briefings in turn, created
‘World Federation of Exchanges:
Forum on Managing Exchanges in Emerging Economies’
16 December 2002
understanding and greater interest in the use of facilities and services offered by the
Public Information Centre and the network of Balai Maklumat BSKL which continued to
serve over 60,000 users for 2003.
KLSE also provided information kiosks on the Malaysian securities industry and the
The effort to remain integrated with the international community continued in 2003 as
capital market at two international events :
KLSE remained actively involved in various activities to ensure timely, accurate and
• The Non-Aligned Movement Summit from 19 to 26 February 2003
comprehensive information of Malaysia’s economic and investment opportunities
• The Malaysia Derivatives Exchange Annual Palm & Lauric Oils Conference from 17-19
continues to reach the world.
March 2003
As in previous years, KLSE continues to contribute to industry effort in investor
education. KLSE expanded its participation in Minggu Amanah Saham PNB from 20 to
27 April 2003 by providing :
Summary of International Relations Efforts for 2003:
No. of International Roadshows Organised
No. of fund managers met during Roadshows
No. of international organisations met (excl. Roadshows)
5
62
162
• Information Kiosk
• Consultations with representatives from stockbroking and futures broking companies
No. of International Conferences/Seminars/Forums Attended
21
• Daily briefings for the duration of the event covering smart investing principles and
investment opportunities on KLSE
KLSE programmes organised during Minggu Amanah Saham PNB 2003 were very
successful and attracted over 80,000 participants.
40
41
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
• Participation in International Roadshows and Events
Annual international roadshows conducted continued in 2003, with roadshows
A N N U A L
R E P O R T
2 0 0 3
7. Commendations
Everyone has to account for performance.
conducted in Tokyo, Hong Kong, London, Edinburgh, Boston and New York. Most of
these roadshows were with the participation of senior representatives from the KLSE
Group, Bank Negara Malaysia and Securities Commission. These meetings provided
There is no one performance more important than another. Scoring a winning goal
is never the effort of just one team member.
the opportunity to provide the latest updates on the economic and investment
The making of a winning team takes all of learning, commitment, best practice,
environment in Malaysia, address and clarify any concerns expressed and take on
talent, innovation, confidence and teamwork.
recommendations for further improvements to the Malaysia investment environment.
‘Handover Ceremony’
27 February 2004
The KLSE Group was also invited to speak and participate at various international
forums in several financial centres including Dubai and Hong Kong, and participation
at these events were maximised to promote Malaysia as an investment destination.
From one journey to another, from 1998 to 2003, from challenges to changes. In setting
The KLSE Group also participated in the MIDA Trade and Investment Mission
the course of a journey that remains true to its destination, it would not have been
delegation to Korea.
possible without the unwavering support and commitment of all parties working together
As part of the international promotional initiatives, the supporting effort implemented
with KLSE, the Malaysian securities industry and capital market.
was in the form of advertisements published in international publications and
These were the women and men from all levels of industry and market participants – our
newspapers to coincide with KLSE’s international roadshows. Additionally, articles on
leaders, captains of industry, industry professionals - who had the courage of conviction
the latest developments in relation to the Malaysian market were contributed for
in making the right decisions, whilst substantiating it with unflinching effort and
publication in international magazines and journals.
commitment.
On behalf of the KLSE Board of Directors and Group Management, our sincere
appreciation to YAB Dato’ Seri Abdullah Ahmad Badawi, Prime Minister and Finance
Minister of Malaysia and to YABhg. Tun Dr Mahathir Mohamad, the recently retired Prime
Minister and Finance Minister of Malaysia. These leaders have continuously focused on
raising the standard of achievement to ensure change and progress for the capital
market and securities industry. Our appreciation also for the teamwork and support of
the Ministry of Finance, Bank Negara Malaysia, the Securities Commission, the
Companies Commission of Malaysia and related regulatory authorities.
42
43
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
Within the KLSE Group, our appreciation to the continued invaluable contribution and
As Chairman and CEO respectively, both have been appointed based on established
unwavering support of members of the KLSE Committee and the recently appointed
track records, including in being well qualified, widely experienced and respected in their
Inaugural Board together with the various sub-committees of the Exchange and KLSE
chosen areas of expertise.
Group.
Both have also built a sound and consistent reputation for a high degree of commitment
To the board of directors of :
towards achieving outstanding performance and results. We look forward to their
• Malaysia Derivatives Exchange Berhad (MDEX)
contribution in propelling KLSE Bhd and the Malaysian securities industry and capital
• Labuan International Financial Exchange Inc. (LFX)
market to greater heights of capabilities and achievements.
• Securities Clearing Automated Network Services Sdn Bhd (SCANS)
With these appointments, what is important to remember is that there will continue to be
• Malaysia Derivatives Clearing House Berhad (MDCH)
a group of qualified and experienced senior executives who lead organisations to achieve
• Malaysian Central Depository Sdn Bhd (MCD)
success. Continued success, however, is always a collective effort – equally determined
• KLSE Information Services Sdn Bhd (KLSE IS)
by capable leaders and the support and co-operation of capable teams.
2 0 0 3
• KLSE Technology Sdn Bhd (KLSE TECH)
• Malaysian Share Registration Services Sdn Bhd (MSRS)
• KLSE Property Management Sdn Bhd (KPM), and
• the Board of Governors of the Research Institute of Investment Analysts Malaysia
(RIIAM) and Yayasan BSKL
– thank you all for your dedication and commitment to change, continued growth and
progress.
Finally, my best wishes to all staff of the KLSE Group - past, present and future. In
reflecting on the journey just ended, and another that has begun - we will realise in the
passage of service, team leaders and team members will come and go. What is
important is that the organisation continues to be the best it can be.
As long as there are journeys to be made and objectives to accomplish, the life of KLSE
as an organisation is shaped by continued excellence, growth and progress. Just as the
lives of the women and men making the journey for KLSE Bhd, should continue to be
I would also like to wish RIIAM and MSRS continued development. As part of the on-
one of excellence, growth and progress, insyaallah.
going effort to streamline the operational and business objectives of the demutualised
exchange, KLSE disposed of its interest in RIIAM on 1 January 2004 and MSRS on 5
January 2004.
Besides everyone at KLSE Group, I would like to thank market and industry participants
and members of the media whom I have worked with and provided valuable support and
advice during my tenure as Executive Chairman of KLSE. Through the ups and downs,
DATO’ MOHAMMED AZLAN HASHIM
through challenges and change – my appreciation and gratitude to all of you for the team
Executive Chairman
spirit and commitment to results that you have shown.
At the end of this journey and the beginning of another, on behalf of KLSE Bhd, we
welcome the appointments of Y.A.Bhg Tun Mohamed Dzaiddin Hj. Abdullah as Chairman
and Yusli Mohamed Yusoff as Chief Executive Officer, with effect from 1 March 2004.
44
45
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
KLSE Market Report
COMMENDABLE PERFORMANCE AND SIGNIFICANT INCREASE IN
TRADING ACTIVITY IN 2003
MARKET PERFORMANCE AND INTERNATIONAL UNCERTAINTY
The Kuala Lumpur Composite Index (KLCI) finished the year at 793.94, posting a gain of
uncertainty in external issues. The uncertainty was mainly due to the sluggish outlook for
147.62 points or 22.84% compared to 646.32 at end-2002. Market valuation on 31
global economic growth, threat of a US-Iraq war and its consequence on global
December was RM640.28 billion, an increase of RM158.66 billion or 32.94% compared
economy and markets. Adding to the gloom were rising oil prices and lower consumer
to RM481.62 billion at the end of 2002. Total volume transacted on the KLSE surged by
confidence in the US. Despite the negative development globally, news that the
97.96% to 124.20 billion units compared to 62.74 billion units in 2002. This translated
government-backed asset management company, Valuecap Sdn Bhd, had begun
into an average daily volume of 504.88 million units in 2003 compared to 253 million units
operations in January caused some excitement in the market. Within 8 days following
in 2002. Meanwhile total value increased by 56.48% to RM206.34 billion compared to
news of Valuecap’s operations, the CI gained 49 points, pushing the CI to 675.87.
RM131.86 billion in 2002 or an average daily value of RM838.77 million in 2003 in
However, the excitement was short-lived as market risks remained high. Rising
contrast to RM531.67 million in 2002.
geopolitical worries, once again, weighed down sentiment on the KLSE. Investors
Year 2003 began on a quiet note, driven by sentiment rather than fundamentals due to
exercised caution, resulting in thin trading activity. At end-February, the CI broke through
During the year, 58 new companies were listed, the highest number in 5 years. Out of the
the 650-support level, to close at 646.80.
58, 16 companies were listed on the Main Board, 22 on the Second Board and 20 on
the MESDAQ Market. In 2002, total number of companies listed were 52, 22 companies
When bombs were dropped over Baghdad in March, the initial expectation was a swift
each on the Main Board and Second Board and 8 on the MESDAQ Market.
end to the US-led war in Iraq. However, the expectation gave way to fears that the war
might prolong after strong resistance shown by the Iraqi forces. The announcement by
2003 was an exceptional year as it not only marked the sterling performance across
the acting Prime Minister of the 10 measures to boost the Malaysian capital market was
global equity markets, but also the ability of these markets to sustain their momentum in
positively regarded by analysts but was weighed down by caution that the economic and
the midst of much uncertainty. It was, after all, a year that unravelled a succession of
financial market situation could be adversely affected.
negative news such as the US -led war on Iraq, outbreak of the Severe Acute Respiratory
Syndrome (SARS) and terrorist attacks. Through it all, the Asian economies and stock
markets had remained fairly resilient. Positive fundamentals shone, as manifested in
Asia’s growing economic confidence, accommodative monetary stance, stronger export
data and also an improving risk appetite for Asian equities. The KLSE was no exception,
finishing the year with an impressive double-digit growth of 22.84% after three years of
modest performance.
Performance of Indices on the Kuala Lumpur Stock Exchange in 2003
MESDAQ MKT
152.25
82.9%
MINING
338.7
74.8%
2ND-BOARD
140.64
43.2%
PROPERTY
750.7
38.8%
TECHNOLOGY
60.3
33.9%
FINANCE
6472.17
700
Number of Companies Listed by Board
INDUSTRIAL
1772.39
(Numbers in bracket indicate new listings for the year)
CONSUMER
216.29
500
520
(6)
499
(12)
474
(10)
454
(6)
444
(25)
598
(16)
561
(22)
600
264
(63)
296
(26)
283
(11)
282
(22)
292
(14)
292
(22)
31.3%
28.8%
CONSTRUCTION
187.97
400
300
33.2%
276
(22)
24.6%
EMAS
195.57
24.4%
IND-PROD
81.39
24.0%
SYARIAH
122.86
23.2%
COMPOSITE
793.94
22.8%
TRAD/SERV
115.34
18.3%
PLANTATION
2180.93
200
17.7%
0
100
3
(2)
1
(1)
32
(20)
12
(8)
4
(1)
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
per cent change
(figures on vertical axis indicate closing levels)
0
1997
1998
1999
Main Board
46
2000
Second Board
2001
2002
2003
MESDAQ Market
47
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
KLSE Market Report
RETURN OF INVESTORS’ CONFIDENCE AND INTEREST
INTEREST IN OIL AND GAS, WATER SECTORS
Interest returned to the KLSE in late May. The upturn began after the announcement of
Trading activity in October continued to focus on stocks deemed to benefit from the
the RM7.3 billion economic stimulus package on 21 May, which fostered optimistic
2004 Budget proposals such as those in the oil and gas, plantation, property and
expectation of a boost to domestic demand and economic growth. Trading activity also
construction. Water-related stocks gained following news of the Government’s projected
saw an improvement following the full implementation of smaller board lots of 100 units
multi-billion ringgit spending plan in water supply infrastructure whilst interest in oil and
each. The abating SARS epidemic within the region also helped sentiment. Globally,
gas stocks returned on talk of Shell striking a new oilfield off Sabah coast and on the
financial and capital markets drew strength from the returning consumer confidence in
announcement by Petronas that it will open seven new deepwater blocks for oil
the US economy. The CI breached the 700-mark on 2 July, and on the following day, total
exploration. Plantation stocks also attracted investors’ buying interest following higher
number of shares traded exceeded the one billion mark while total value exceeded RM2
CPO prices. Before the month ended, Plantation Index hit the year’s high of 2240.57.
billion. After touching the 730 level in early July, the market went into a consolidation
phase as investors cashed-in their profits. However, interest in the market remained
in the global technology sector. Average daily volume exceeded half a million units during
UPGRADE IN SOVEREIGN RATING AND MARKET HITS 18-MONTH
HIGH IN OCTOBER
the month, an improvement over the average daily volume of 284 million units in the first
Meanwhile, in early October, Standard & Poor’s upgraded Malaysia’s foreign currency
six months of the year. Oil and gas stocks caught investors’ interest in July, following the
credit rating to ‘A-‘, putting Malaysia on par with South Korea. The upgrade attracted
discovery of new oil reserves in Kikeh, off the coast of east Malaysia.
foreign portfolio inflows, catapulting the KLCI to surpass the 800-point level for the first
strong, supported by Technology and MESDAQ Market stocks on optimism of a recovery
The upbeat sentiment was further boosted by a spate of upbeat corporate results which
showed that the impact of the Iraq war and SARS were not as bad as expected earlier.
The CI was also bolstered in September, in its bid to catch up with other regional
markets, which had been advancing on improved economic outlook in the US.
time in nearly 18 months. The highest trading value for the year of over RM2.5 billion was
also transacted in early October. The smooth hand-over of the premiership was well
received by investors. The CI hit the year’s high of 817.12 on 31 October, the day Tun Dr
Mahathir Mohamed handed over his post as the prime minister of Malaysia, after 22
years of service, to Datuk Seri Abdullah Ahmad Badawi. Also in October, Astro All Asia
Networks Plc (Astro), the biggest IPO in 2003, made its debut on the KLSE Main Board.
Performance of Key Regional Indices in 2003
SET, Thailand
772.15
116.60%
BEST PERFORMER IN 2003 – MESDAQ MARKET
JSE Composite, Indonesia
691.90
62.82%
PSE Composite, Philippines
1,442.37
Trading activity on the MESDAQ Market had been improving since June on growing
41.63%
market awareness, improved confidence and attractive value recognition of its stocks. In
Hang Seng Composite, Hong Kong
12,575.94
34.92%
early November, the MESDAQ Market Index touched the year’s high of 165.08, posting
Weighted, Taiwan
5,890.69
32.30%
a gain of 126% from the year’s low of 72.89 in early May. The index was the best
Straits Times, Singapore
1,764.52
31.58%
performing index on KLSE in 2003, registering a gain of 82.88% during the year.
KSE Price, South Korea
810.71
29.19%
Market weakness returned in mid-November, taking the cue from developments in the
Nikkei-225, Japan
10,676.64
24.45%
KLSE Composite, Malaysia
793.94
Shanghai-A Shares, China
1,569.13
markets as they feared that the market had risen too far in the recent rally. Weakness in
the US dollar against most major regional currencies also prompted active selling in
10.57%
Shanghai-B Shares, China
104.94
-0.2
US and the region. Investors in the US were cashing-in on gains made in the stock
22.84%
technology-related stocks and stocks of exporters in the region on fear that the value of
-7.55%
0
0.2
0.4
0.6
0.8
1
per cent change
(figures on vertical axis indicate closing levels)
1.2
1.4
their overseas sales will erode. Some investors cited fears of a potential rising trend in
global interest rates after Australia and Britain announced interest rate hikes. Concern
that rising oil prices would hike costs also dampened sentiment.
48
49
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
KLSE Market Report
Market activity was lackluster in December. While some fund managers closed their
books early after performing handsomely during the year, others were waiting for further
developments on government-related projects which had been awarded to contractors,
as the signal from the government was that it will be focusing on high priority
development projects.
MESDAQ Market - Index, Volume, Value
2002 - 2003
200
3000
180
MESDAQ Market Index:
160
Volume (units):
Value (RM):
Low
177.53
(26/03/02)
321.51m
(28/08/03)
176.37m
(28/08/03)
72.89
(07/05/03)
1,000
(14/01/02)
700
(18/01/02)
250
2000
Index
120
1500
100
80
1000
60
Volume (units) & Value (RM)
million
140
High
40
500
20
0
0
Dec-03
Nov-03
Oct-03
Sep-03
Aug-03
Jul-03
Jun-03
May-03
Apr-03
Mar-03
Value
Feb-03
Jan-03
Dec-02
Nov-02
Oct-02
Sep-02
Aug-02
Jul-02
Jun-02
May-02
Apr-02
Mar-02
Feb-02
Jan-02
Volume
MESDAQ Market Index
MESDAQ Market - Market Valuation, Number of Companies Listed
2002 - 2003
4.50
35
32
Market Valuation:
High
Low
4.00
3.91
(30/12/03)
0.27
(19/03/02)
3.50
25
3.00
20
2.50
2.00
15
12
Market Valuation
(RM billion)
Number of Listed Companies
30
1.50
10
1.00
5
5
0.50
0
Dec-03
Nov-03
Oct-03
Sep-03
Aug-03
Jul-03
Jun-03
May-03
Apr-03
Mar-03
Feb-03
50
Jan-03
Dec-02
Nov-02
Oct-02
Sep-02
Aug-02
Jul-02
Jun-02
May-02
Apr-02
Mar-02
Feb-02
Jan-02
Market Valuation
No. of Cos
51
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
KLSE COMPOSITE INDEX
Chart for Year 2003
900.00
Mar 11: DPM
announces 10
measures to
enhance
capital market
800.00
Mar 29: US-led
forces attack Iraq
Apr 8: US-led
forces control
parts of Baghdad
May 21:
RM7.3 billion Economic
Stimulus Package
unveiled. BNM lowers
intervention rate by 50bp
to 4.5%
Aug 4: Khazanah
call warrants listed
on KLSE
Oct 8: S&P raises
Malaysia's sovereign
rating to A- from BBB+
12000
Oct 28: SC reduces time to
market for IPO's from 25 to
13 market days
793.94
Oct 31: Datuk Seri
Abdullah Ahmad Badawi
sworn-in as 5th PM
10000
700.00
633.50
Aug 27: 2Q GDP
grew at 4.4%
year-on-year
Index
500.00
End-Jan - Feb 17:
Uncertainties over
possibility of US-led
war against Iraq
Apr 3: Merrill
Lynch upgrades
Malaysia's equity
market to
overweight
May 2: US
President
Bush declares
major fighting in
Iraq as over
May 26: Full
implementation of
smaller
board lots of 100
shares each
Sep 22: Dollar declines after
G7 meet urged Asian nations
to accept flexible exchange
rates
Dec 4: Listing of
Khazanah
second-tranche
call warrants on
KLSE
8000
6000
400.00
Jan 13: Valuecap
begins operation
End-Mar - Apr:
Concerns over
impact of SARS
300.00
4000
Volume (Units)/Value (RM)
(Million)
600.00
Sep 12: Tabling
of Budget 2004
200.00
2000
100.00
11-Jul
18-Jul
25-Jul
1-Aug
8-Aug
15-Aug
22-Aug
29-Aug
5-Sep
12-Sep
19-Sep
26-Sep
3-Oct
10-Oct
17-Oct
24-Oct
31-Oct
7-Nov
14-Nov
21-Nov
28-Nov
5-Dec
12-Dec
19-Dec
26-Dec
31-Dec
3-Jan
10-Jan
17-Jan
24-Jan
31-Jan
7-Feb
14-Feb
21-Feb
28-Feb
7-Mar
14-Mar
21-Mar
28-Mar
4-Apr
11-Apr
18-Apr
25-Apr
2-May
9-May
16-May
23-May
30-May
6-Jun
13-Jun
20-Jun
27-Jun
4-Jul
0
Volume
52
Value
Composite
53
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Shareholding and Trading on KLSE
Local and International
Shareholdings vs. Market Capitalisation
As at 31 December 2003
Local shareholding = RM516.35 billion
Foreign shareholding = RM120.77 billion
600
81.0%
80.5%
400
81.5%
81.9%
500
76.9%
400
300
300
200
19.0%
21.8%
100
19.5%
23.1%
18.5%
18.1%
200
100
0
Market Capitalisation (RM billion)
600
78.2%
500
700
78.0%
400.0
83.1%
350.0
76.0%
300.0
RM billion
Local shareholding = RM286.28 billion
Foreign shareholding = RM86.04 billion
Market Value (RM billion)
Trading Pattern
Local and International
250.0
200.0
67.7%
72.6%
71.1%
150.0
100.0
22.0%
27.4%
32.3%
16.9%
24.0%
28.9%
50.0
0
1998
1999
Local
2000
International
2001
2002
2003
1998
1999
2000
2001
Local
Market Capitalisation
2002
2003
International
Source: Figures were based on CDS information.
Source: Figures were based on the submissions by stockbroking companies.
International shareholding on the MSEB remains significant. In percentage terms, based on market value,
Participation by local investors continued to be significant on the MSEB. For 2003, local investors comprised
the shareholding of international investors stood at 19.0% as at December 2003, compared to 23.1% as at
76.0% based on total trading value of RM412.1 billion, compared to 67.7% in 2002 and 71.1% in 2001.
December 1998. While this represented a decrease of 4.1%, in absolute terms, the market value of international
shareholding has increased from RM86.04 billion as at December 1998 to RM120.77 billion as at December
Trading activity of international investors has also been at significant levels. Based on submissions by
2003, an increase of RM34.73 billion or 40.4%.
stockbroking companies, international investors accounted for 24.0% of total trading activity in the MSEB
in 2003.
The total market value of securities immobilised in the Central Depository System (CDS) increased from
RM372.3 billion as at December 1998 to RM637.1 billion in December 2003, or a 71.1% increase. This was
The presence of trading activity attributable to international investors on MSEB demonstrated that international
attributable to the number of new listings (188 in all) and the general market appreciation since the crisis
investors have continued to be a major player in our market.
in 1998. [KLSE Composite Index (KLSE CI) end-December 1998: 586.13 versus KLSE CI end-December 2003:
793.94]
54
55
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Ahmad Sahat
1972
Office Boy
From
Aspirers
to
Achievers
Latifah Md Yusof
1973
Listing Officer
Lee Choy
1974
Statistical Clerk
Lee Choy
2003
Head, Administration
2 0 0 3
Qua Gek Kim
1973
Market Research Officer
Qua Gek Kim
2003
Senior Vice President,
Public Information
Latifah Md Yusof
2003
Listing Group
Ahmad Sahat
2003
Manager,
Public Information Centre
R E P O R T
Abdul Razak Amin
1988
Personnel Manager
Abdul Razak Amin
2003
Group Human Resources
Human Resource Management
• Skills Training
• Knowledge Enhancement
• Change Management
• Empowerment
• Open Communications
56
57
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
KLSE Berhad Board Members
(formerly known as KLSE Committee Members)
58
DATO’ MOHAMMED AZLAN HASHIM
Executive Chairman
DATUK MOHAIYANI SHAMSUDIN
Deputy Chairman
• Bachelor of Economics (Accounting),
Monash University, Australia;
• Member of Malaysian Institute of
Accountants;
• Member of Institute of Chartered
Accountants, Australia;
• Government appointed Committee
Member: 18.12.1996 – 31.12.1997;
• Government appointed Executive
Chairman: 1.1.1998 – present
• Master of Business Administration (Finance),
Cornell University, Ithaca, New York, USA;
• Bachelor of Arts (Economics), Knox College,
Galesburg, Illinois, USA;
• Elected to the Committee: 28.11.1998 present;
• Elected as Deputy Chairman: 20.11.1999 –
present
YUSLI MOHAMED YUSOFF
Committee Member
TAN KIM LEONG, JP
Committee Member
• Bachelor of Arts (Hons.) Economics,
University of Essex, England;
• Member of Institute of Chartered Accountants,
England and Wales;
• Elected to the Committee: 1.1.2001 – present
• Member of Malaysian Institute of Accountants;
• Member of Malaysian Institute of Certified
Public Accountants;
• Fellow of Institute of Chartered Accountants,
Australia;
• Fellow of Malaysian Association of the Institute
of Chartered Secretaries & Administrators;
• Government appointed Committee Member:
18.12.1996 - present
ABDUL KADIR HJ MD KASSIM
Committee Member
ABDUL JABBAR ABDUL MAJID
Committee Member
• Bachelor of Laws (Hons.)
University of Singapore;
• Advocate & Solicitor, Malaysia;
1.3.1998 – present
• Member of Malaysian Institute of Accountants;
• Member of Malaysian Association of Certified
Public Accountants;
• Fellow of Institute of Chartered Accountants,
Australia;
18.1.2001 – present
PETER LEONG TUCK LENG
Committee Member
DATIN MARIAM YUSOF
Committee Member
ABDUL RAUF RAMLI
Committee Member
• Master of Science (Economics),
School of Economics, London;
• Elected to the Committee Member:
1.1.2001 – present
• Certificate in Investment Analysis,
Mara Institute of Technology;
• Bachelor of Arts (Hons) English,
University of Malaya;
• Elected to the Committee: 1.1.2002 - present
• Bachelor of Economics (Analytical)
University of Malaya;
• Diploma in Investment Analysis:i. Malaysian Association of Productivity [MAP];
ii. Permodalan Nasional Berhad [PNB]; and
iii. Western Australian Institute of Technology
[WAIT]);
• Elected to the Committee: 1.1.2002 – present
59
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Group Board Members
KLSE, MDEX, LFX, KPM, KLSE IS,
KLSE TECH, MCD, SCANS, YBSKL,
KLSE TRAINING, MSEB
Tan Kim Leong, JP
KLSE, KPM, SCANS MCD,
KLSE TRAINING, MSEB
60
KLSE, SCANS, KLSE TRAINING,
MSEB
Abdul Kadir Hj. Md Kassim
KLSE, LFX, SCANS, YBSKL, MSEB
KLSE, MDEX, KPM, KLSE TECH,
SCANS, MSEB, LFX, MCD, MDCH
KLSE, MDEX, KLSE IS,
KLSE TECH, SCANS
KLSE, LFX, SCANS, MSEB
Datin Mariam Yusof
KLSE, LFX, SCANS,
KLSE TRAINING, RIIAM
Abdul Rauf Ramli
KLSE, MCD, SCANS
Dato’ Seri Hwang Sing Lue
MDEX, KLSE TECH
Md Nor Ahmad
MDEX, LFX, KPM, KLSE IS,
KLSE TRAINING, KLOFFE INFO
Alvin Kwan Wing Yew
MDEX, MDCH
61
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Group Board Members
YAM Tunku Dato’ Seri Nadzaruddin
Tuanku Ja’afar
MDEX
Noorazman
LFX. KLSEB, KLSE TECH,
MCD, MDCH, SCANS
62
Mohd Zain Omar
MDEX
Dr Zaha Rina Zahari
LFX. MDCH
Wong Fook Wah
MDEX
LFX
Dato’ Ahmad Johan Raslan
LFX
Dato’ Seri Hj. Megat Najmuddin
Datuk Seri Dr. Hj. Megat Khas
SCANS
MDCH
Ahmad Hizzad Baharuddin
MDCH
Noripah Kamso
MDCH
Datuk Amirsham A. Aziz
MCD
Ahmad Subri Abdullah
MCD
63
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Group Board Members
Chan Guan Seng
MCD
KLSE TECH
64
Datuk Azlan Mohd Zainol
MCD
R E P O R T
2 0 0 3
Board Of Governors
Yayasan BSKL
Datuk Hj. Abdul Karim Haron
Dato’ N. Sadasivan A/L N. N. Pillay
Dato’ Che Mohd Annuar
Che Mohd Senawi
Othman Abdullah
KPM, YBSKL
65
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
LFX Committee Members
Mohd Nasir Ali
LFX
Prof. Madya Dr. Mohd Daud Bakar
LFX
R E P O R T
2 0 0 3
KLSE Group Management
Vaseehar Hassan Abdul Razack
LFX
Executive Chairman
Chief Executive Officer - Designate
Devanesan Evanson
Head, Internal Audit
Vacant
Raymond Wong
LFX
66
Jeremy C. Camps
LFX
Louise Paul
LFX
Md Nor Ahmad
Chief Information Officer
Chief Financial Officer
67
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Regulations
Dr. Zaha Rina Zahari
Head, Exchanges
Head, Clearing, Settlement &
Depository
Ahmad Tajuddin Carrim
Head, Group Human Resource
68
Manoj Devadasan
Head, Group Legal
Head, Information Services
YM Ungku A. Razak bin
Ungku A. Rahman
Head, Exchange Systems
Azman Shah Md Yaman
Head, Group Corporate Secretarial &
Compliance/Company Secretary
Md Nor Ahmad
Wong Kay Yong
Head, Listing Compliance
Selvarany Rasiah
Head, Legal Advisory
Low Pheng
Head, Group Risk Management
Johan Abdullah
Head, Issues & Listing
Khairul Annuar Azizi
Head, Market Surveillance &
Investigation
Tan Chun Weng
Head, Intermediary Supervision
69
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Technology Support
Exchange Operations
Head, Exchanges
70
Head, Clearing, Settlement & Depository
YM Ungku A. Razak
Ungku A. Rahman
Chief Information Officer
Norhan Che Awang
Head, Vendor Management
Wong Chew Suit
Head, Projects
Tai Yoke Peng
Head, Organisation & Methods
71
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Exchange Operations
Finance & Strategy
Vacant
Chief Financial Officer
Lew Lup Seong
Head, Financial Controller
Khairussaleh Ramli
Head, Strategy & Corporate Finance
Teng Siew Peng
Treasurer
Head, Exchange Business Unit
Sree Kumar C. K. Nayar
Head, Market & Product Development
S. Loganathan
Head, Offshore Markets
Clearing, Settlement & Depository
Azran Osman-Rani
Head, Business Transformation Office
72
Ong Li Lee
Head, External Affairs
Mohamad Azam Ali
Head, Public Relations
Lim Lean Beng
Head, Clearing, Settlement & Depository Head, Clearing, Settlement
& Operations
Chua Kong Khai
Head, Depository
Cheah Sin Keat
Head, Operations Risk Management
73
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Information Services
Shukoriah Mohd Nor
Head, Public Information Centres
74
Exchange Systems
Khamarul Baharain Sulaiman
Deputy Head, Information Services
Jothimany d/o Muniandy
Head, Business Development &
Strategic Initiatives
Winnie Chong Ah Nyok
Head, Data Sevices
Michelle Tog Phui Quan
Head, Customer Service
Azul Sidek Adnan
Head, Multimedia Services
Yew Kim Keong
Head, Facilities Management
YM Ungku A. Razak
Ungku A. Rahman
Ang Ting Kang
Head, IT Development & Services
Zulkifli Harun
Head, Business Planning &
Development
Wan Asriah Wan Adnan
Head, Business Continuity &
Disaster Recovery
75
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
KLSE Group Company Reports
and Profiles
Corporate Services
Ahmad Tajuddin Carrim
Head, Group Human Resource
Manoj Devadasan
Head, Group Legal
Azman Shah Md Yaman
Head, Group Corporate Secretarial &
Compliance/Company Secretary
contents
76
78 - 83
Labuan International Financial Exchange
84 - 85
Securities Clearing Automated Network
Services Sdn Bhd
86 - 87
Malaysian Derivatives Clearing House Berhad
88 - 91
Malaysian Central Depository Sdn Bhd
92 - 93
94 - 95
96 - 97
77
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Market Participants : KLSE CI Futures
60%
The global derivatives markets showed vigorous growth
The Crude Palm Oil (CPO) Futures contract or "FCPO"
for the first half of 2003 according to statistics published
was still the most active contract traded, registering new
by the Bank for International Settlements (BIS). The total
market records in 2003. Total turnover for 2003 was
estimated notional amount outstanding for over-the-
1,429,959 lots, surpassing the 1 million contracts mark,
counter (OTC) contracts stood at US$169.7 trillion (end-
with an average daily volume of 5,813 lots. For a single
June 2003), a 20% increase from end-December 2002.
trading day, volume touched a high of 14,508 lots on
This was largely attributed to the growth in financial
21 October 2003. October also recorded the highest
derivatives contracts, particularly interest rate swaps.
monthly volume transacted of 177,319 lots. A record daily
8 0%
Organised exchanges posted a much stronger growth
open interest of 32,073 contracts was achieved on
70%
than the OTC market with a 61% increase in notional
13 August 2003. Year-end open position stood at 21,149
60%
amounts outstanding in the first half of 2003.
contracts. Palm prices remained volatile in 2003, moving
Market Participants : 3-month KLIBOR Futures
100%
90%
MDEX products in 2003 increased by 55.5% to
Malaysian palm oil production could not match the
2,000,263 lots.Year-end open interest for all products
demand from consuming countries. Market demography
increased to 49,296 contracts; up 10.2% from the
remained unchanged with Locals (35%) as the largest
previous year. In comparison, total volume for all
contributors, followed by Domestic Retail (26%),
exchange-traded contracts in 2002 stood at 1,287,662
Domestic Institutions (18%), Foreign Institutions (17%),
lots while the year-end open position was 44,739 contracts.
Foreign Retail (3%) and Proprietary (1%).
Total volume for the Kuala Lumpur Stock Exchange
Similarly, the 3-Month Kuala Lumpur Interbank Offered
Composite Index (KLSE CI) Futures or "FKLI" was
Rate (KLIBOR) short-term interest rate Futures contract or
331,218 lots, averaging 1,346 lots a day. Year-end open
"FKB3" continued to show an increase in institutional
position for 2003 was 8,993 contracts. Relatively robust
trading activities. Total volume in 2003 was up 86.1% to
growth in Asia, underpinned by a broad recovery in
119,659 lots, with an average daily volume of 486 lots.
120%
40%
exports in 2002, helped the local markets recover in
Market records achieved in 2003 were a new highest daily
100%
35%
2003. In the first half of 2003, the outlook for Asia was
volume of 6,001 lots on 21 July 2003 and highest open
30%
uncertain, following signs of weakness in external debt
interest of 29,289 contracts on 26 May 2003. At the end
25%
and the spread of the severe acute respiratory syndrome
of 2003, open positions for the FKB3 market stood at
(SARS). The second half of 2003 was much better with
18,977 contracts. The market demography for FKB3 is as
20%
SARS under control and increased consumer and public
follows: Local Institutions (87%), Domestic Retail (6%),
0%
5%
spending driving demand. This translated into better
Foreign Institutions (6%) and Locals (1%). Interest rates
0%
volumes on the equity and derivatives market. FKLI
remained unchanged for the year and the bulk of activity
turnover was also helped by the modification of the
on the 3-Month KLIBOR Futures market was contributed
contract to a smaller value and an increased tick size
by activities in the local interest rate swap (IRS) market via
on19 September 2003, thus enabling a less costly entry
STRIP trading.
15%
Categories
Proprietary
Locals
Domestic
Retail
Foreign
Retail
Domestic
Institutions
Foreign
Institutions
10%
■ Year 2002 ■ Year 2003
Proprietary
Locals
Domestic
Retail
Foreign
Retail
Foreign
Institutions
80%
60%
40%
Categories
Proprietary
20%
Market Participants : MGS Futures
Locals
45%
■ Year 2002 ■ Year 2003
Categories
Domestic
Retail
Market Participants : CPO Futures
0%
Foreign
Retail
■ Year 2002 ■ Year 2003
20%
10%
Percentage
Proprietary
an unexpected fall in production. The slight increase in
Locals
from strength to strength in 2003. Total turnover for all
Domestic
Retail
drought in the USA soybean planting areas which caused
Foreign
Retail
The Malaysia Derivatives Exchange Berhad (MDEX) grew
0%
Domestic
Institutions
10%
Categories
Percentage
40%
30%
Domestic
Institutions
upwards in the second half of the year due to a severe
50%
Domestic
Institutions
20%
Foreign
Institutions
30%
Percentage
40%
Foreign
Institutions
Percentage
50%
■ Year 2002 ■ Year 2003
into the futures market. Additional measures are
underway to boost participation and interest in the KLSE
CI Options contract, which is still in the process of being
accepted
by
market
participants.
The
market
demography for the FKLI contract in 2003 saw an
increase in Foreign Retail and Institutional participation to
35%. The rest of the breakdown is as follows: Domestic
Retail (45%), Locals (14%), Domestic Institutions (5%),
and Proprietary (1%).
78
79
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
MDEX launched the 3-Year and 10-Year Malaysian Government Securities (MGS) bond futures contracts on 19 September
KLSE CI Futures VS KLSE CI
2003 to complement its existing 5-Year MGS Futures contract or "FMG5". In 2003, FMG5 registered a turnover of 118,635
lots, an increase of 47.5% from the previous year. Average daily volume for FMG5 was 482 lots. However, year-end open
FKLI vs KLSE CI
835
815
traded. Physical bond markets and bond futures contracts worldwide experienced a massive selldown in July 2003 due to
795
worries on US interest rates and US Treasuries. Malaysia was not spared and the bond market was listless for the rest of the
775
Index Points
position dropped to 127 contracts. The highest daily volume for a single day was recorded on 16 July 2003 with 3,215 lots
year. The quiet physical bond market affected volumes on the new bond futures contracts. The 3-Year MGS Futures contract
or "FMG3" and 10-Year MGS Futures contract or "FMGA" recorded a total yearly turnover of 781 lots and 11 lots respectively.
MDEX’s encouraging performance in the last two years augers well for 2004 as most products show a marked increase in
Trading Date: 02 January 2003
KLSE CI: 632.43
FKLI: 627.6
755
735
715
695
Trading Date: 31 December 2003
KLSE CI: 793.94
FKLI: 792.0
675
655
volumes and open positions. The Exchange expects the Crude Palm Kernel Oil Futures contract to be launched in early 2004
635
and this contract is expected to complement the existing Crude Palm Oil Futures contract.
615
595
The following are the significant developments and activities of MDEX in the last 12 months:
24-Dec-03
8-Dec-03
16-Dec-03
28-Nov-03
7-Nov-03
17-Nov-03
30-Oct-03
21-Oct-03
3-Oct-03
13-Oct-03
25-Sep-03
9-Sep-03
17-Sep-03
29-Aug-03
21-Aug-03
5-Aug-03
13-Aug-03
28-Jul-03
18-Jul-03
2-Jul-03
10-Jul-03
24-Jun-03
6-Jun-03
16-Jun-03
29-May-03
9-May-03
21-May-03
30-Apr-03
22-Apr-03
4-Apr-03
14-Apr-03
27-Mar-03
19-Mar-03
11-Mar-03
28-Feb-03
20-Feb-03
29-Jan-03
11-Feb-03
21-Jan-03
3-Jan-03
1. Investors Roadshow with MDEX Trading Members (Whole of 2003)
13-Jan-03
575
2. The 14th Annual Palm & Lauric Oils Conference & Exhibition: Price Outlook 2003/2004 (17-19 March 2003)
3. Media Workshop on MDEX and its Products (16 July and 7 August 2003)
4. Launch of the 3-Year and 10-Year MGS bond futures contracts and modification of the KLSE CI Futures contract
(19 September 2003)
Exchange Total Daily Volume & Open Interest
Volume: 8,506
Open Interest: 45,262
10,000
80,000
Volume: 2,839
13,000
Volume: 1,159
9,000
16,000
70,000
50,000
10,000
40,000
8,000
30,000
6,000
10,000
7,000
9,000
6,000
8,000
7,000
5,000
6,000
4,000
5,000
3,000
4,000
3,000
2,000
2,00
20,000
4,000
1,000
30-Dec-03
19-Dec-03
11-Dec-03
3-Dec-03
20-Nov-03
4-Nov-03
12-Nov-03
27-Oct-03
8-Oct-03
16-Oct-03
30-Sep-03
22-Sep-03
4-Sep-03
12-Sep-03
26-Aug-03
8-Aug-03
18-Aug-03
31-Jul-03
23-Jul-03
15-Jul-03
7-Jul-03
27-Jun-03
19-Jun-03
3-Jun-03
11-Jun-03
26-May-03
16-May-03
6-May-03
25-Apr-03
17-Apr-03
9-Apr-03
1-Apr-03
24-Mar-03
6-Mar-03
14-Mar-03
25-Feb-03
6-Feb-03
17-Feb-03
24-Jan-03
23-Dec-03
5-Dec-03
15-Dec-03
27-Nov-03
6-Nov-03
14-Nov-03
29-Oct-03
20-Oct-03
2-Oct-03
10-Oct-03
24-Sep-03
8-Sep-03
16-Sep-03
28-Aug-03
20-Aug-03
4-Aug-03
12-Aug-03
25-Jul-03
9-Jul-03
17-Jul-03
1-Jul-03
23-Jun-03
5-Jun-03
13-Jun-03
28-May-03
8-May-03
20-May-03
29-Apr-03
21-Apr-03
3-Apr-03
11-Apr-03
26-Mar-03
18-Mar-03
10-Mar-03
27-Feb-03
19-Feb-03
28-Jan-03
10-Feb-03
20-Jan-03
2-Jan-03
10-Jan-03
0
16-Jan-03
0
0
1,000
0
2-Jan-03
10,000
2,000
80
Open Interest
No of contracts
12,000
No of contracts
60,000
11,000
Volume: 298
8,000
14,000
12,000
Open Interest
18,000
KLSE CI Futures Daily Volume and Open Interest
81
82
6-Jan-03
26-Dec-03
17-Dec-03
9-Dec-03
1-Dec-03
18-Nov-03
10-Nov-03
31-Oct-03
22-Oct-03
14-Oct-03
6-Oct-03
26-Dec-03
17-Dec-03
9-Dec-03
1-Dec-03
18-Nov-03
10-Nov-03
31-Oct-03
22-Oct-03
14-Oct-03
6-Oct-03
26-Sep-03
12,000
2,000
0
6,500
Volume: 386
4,500
4,000
3,500
20,000
3,000
2,500
15,000
2,000
1,000
0
0
4,000
8,000
5-Mar-03
29-Dec-03
18-Dec-03
R E P O R T
3,500
Volume: 0
Open Interest: 127
32,000
2,500
28,000
8,000
2,000
7,000
1,500
6,000
5,000
500
Open Interest
A N N U A L
10-Dec-03
2-Dec-03
19-Nov-03
11-Nov-03
B E R H A D
3-Nov-03
23-Oct-03
15-Oct-03
7-Oct-03
29-Sep-03
Volume: 680
19-Sep-03
11-Sep-03
3-Sep-03
25-Aug-03
15-Aug-03
7-Aug-03
30-Jul-03
22-Jul-03
14-Jul-03
4-Jul-03
26-Jun-03
18-Jun-03
10-Jun-03
2-Jun-03
23-May-03
13-May-03
5-May-03
24-Apr-03
CPO Futures Daily Volume and Open Interest
16-Apr-03
8-Apr-03
31-Mar-03
21-Mar-03
6,000
13-Mar-03
16,000
24-Feb-03
8,000
5-Feb-03
20,000
14-Feb-03
24,000
23-Jan-03
10,000
7-Jan-03
3,000
15-Jan-03
36,000
27-Dec-02
12,000
No of contracts
14,000
Open Interest
Volume: 1,294
Open Interest
Volume: 1
18-Sep-03
10-Sep-03
2-Sep-03
22-Aug-03
14-Aug-03
6-Aug-03
29-Jul-03
21-Jul-03
11-Jul-03
3-Jul-03
25-Jun-03
17-Jun-03
9-Jun-03
30-May-02
22-May-03
Volume: 7,527
26-Sep-03
2-May-03
12-May-03
16,000
18-Sep-03
10-Sep-03
2-Sep-03
22-Aug-03
14-Aug-03
6-Aug-03
29-Jul-03
21-Jul-03
11-Jul-03
3-Jul-03
25-Jun-03
17-Jun-03
9-Jun-03
30-May-02
22-May-03
12-May-03
23-Apr-03
15-Apr-03
7-Apr-03
28-Mar-03
20-Mar-03
E X C H A N G E
2-May-03
23-Apr-03
15-Apr-03
7-Apr-03
28-Mar-03
12-Mar-03
3-Mar-03
21-Feb-03
13-Feb-03
30-Jan-03
22-Jan-03
S T O C K
20-Mar-03
12-Mar-03
3-Mar-03
6-Jan-03
14-Jan-03
No of contracts
L U M P U R
21-Feb-03
13-Feb-03
5,500
30-Jan-03
6,000
22-Jan-03
14-Jan-03
No of contracts
K U A L A
2 0 0 3
5-Year MGS Futures Daily Volume and Open Interest
12000
11000
10000
9,000
1,000
4,000
3,000
2,000
1,000
0
4,000
0
3-month KLIBOR Futures Daily Volume and Open Interest
35,000
30,000
5,000
25,000
1,500
10,000
500
5,000
0
83
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
Labuan International Financial Exchange
A N N U A L
R E P O R T
2 0 0 3
Market Information (as at December 2003)
Year
Listed Instruments
Closed-Ended Funds
Open-Ended Funds
Debt Securities
Total (USD)
2000
0
0
0
0
0
2001
1
0
0
250,000,000
250,000,000
The year 2003 continued on where Labuan International Financial Exchange (LFX) ended year 2002, with the secondary listing
2002
10
0
229,048,993
1,400,000,000
1,629,048,993
of the USD265m RHB-Bond, issued by Rashid Hussain Berhad as part of its restructuring process, following the listing of the
2003
13
0
292,622,228
1,965,205,000
2,257,827,228
USD400m Guaranteed Exchangeable Bonds by TNB Capital (L) Ltd on behalf of Tenaga Nasional Berhad. This further
indicates support for LFX from the local corporations despite being only in its third year of operations.
Detailed Market Information (as at December 2003)
The next major event took place in May 2003 when the first primary listing of a mutual fund on the LFX was completed. The
No.
Instruments
Type
Issuer
Listing
Date
Value
(USD)
1.
Floating Rate
Notes 2001/2008
Debt Securities
(Labuan) Inc.
1st Silicon
20 June 2001
250,000,000
offshore exchange that offers a primary platform for the listing of a wide range of financial products
2.
Serial Islamic
Lease Sukuk
Debt Securities
(Islamic Notes)
First Global Sukuk
Inc.
Primary
25 Jan 2002
50,000,000
Bank Islam (Labuan)
Limited
As the year ended, LFX recorded another secondary listing when the Genting Berhad group completed the listing of a
3.
Serial Islamic
Lease Sukuk
Debt Securities
(Islamic Notes)
First Global Sukuk
Inc.
Primary
25 Jan 2002
100,000,000
Bank Islam (Labuan)
Limited
4.
IDB European
Bond Class B
Open-Ended
Funds
IDB Asset
Selection Sicav
Secondary
26 Mar 2002
* 61,133,570
EQ Funds Services
(Asia) Limited
[formerly known as
Insinger Funds Services
(Asia) Ltd]
5.
IDB MultiManager Asia
ExJapan
Open-Ended
Funds
IDB Manager
Selection Sicav
Secondary
26 Mar 2002
* 5,611,308
EQ Funds Services
(Asia) Limited
[formerly known as
(Asia) Ltd]
6.
IDB MultiManager
Balanced A
Open-Ended
Funds
IDB Manager
Selection Sicav
Secondary
26 Mar 2002
*163,774,840
EQ Funds Services
(Asia) Limited
[formerly known as
(Asia) Ltd]
7.
IDB MultiManager
Equity A
Open-Ended
Funds
IDB Manager
Selection Sicav
Secondary
26 Mar 2002
* 56,901,010
EQ Funds Services
(Asia) Limited
[formerly known as
(Asia) Ltd]
8.
Insinger De
Beaufort Zeus
(OS)
Open-Ended
Funds
Insinger De
Beaufort Zeus
Fund
Secondary
26 Mar 2002
*Suspended
EQ Funds Services
(Asia) Limited
[formerly known as
(Asia) Ltd]
9.
Sukuk Al-Ijarah
Trust Certificates
2002/2007
Debt Securities
(Islamic Notes)
Malaysia Global
Sukuk Inc.
Secondary
18 Sept 2002
600,000,000
AmInternational
(Labuan) Limited
Debt Securities
TNB Capital (L)
Limited
Secondary
26 Nov 2002
400,000,000
CIMB (Labuan)
Limited
The Malaysian Government has also indicated its commitment towards the development of LFX by agreeing in principle to the
10. Guaranteed
Exchangeable
Bonds due 2007
secondary listing of some of its foreign currency Notes already issued.
11. RHB-Bond 2007
Debt Securities
Rashid Hussain
Berhad
Secondary
12 Mar 2003
265,205,000
AmInternational
(Labuan) Limited
12. Am-Macquarie
Sovereign Plus
Fund
Open-Ended
Funds
Macquarie
Investment
Services Limited
Primary
23 May 2003
5,201,500
AmInternational
(Labuan) Limited
13. Redeemable
Exchangeable
Bonds
Debt Securities
Prime Venture (L)
Limited
Secondary
30 Dec 2003
300,000,000
Am-MacQuarie Sovereign Plus Fund is issued and managed by MacQuarie Investment Services Limited, operating within
Macquarie Funds Management, and is part of the Macquarie Bank Group, an Australian investment bank. The fund is an
open-ended fund with a maximum size of AUD40m (approximately USD20m) and it further enhanced LFX’s position as an
USD300.0 million exchangeable notes issue through its Labuan incorporated subsidiary, Prime Venture (Labuan) Limited (PVL).
With the latest listing, there are 13 instruments listed on LFX to date, comprising three Syariah compliant certificates (Sukuk),
Listing
Class
Secondary
six investment funds and four conventional debt instruments and exchangeable bonds, with a total market capitalisation of
USD2.26 billion.
Throughout the year, LFX continued taking steps to enhance its competitive edge. The signing of a Memorandum of
Understanding (MOU) with the Bahrain Stock Exchange (BSE) to facilitate the dual listings of instruments on both exchanges
and exchange of information of listed products will further assist in promoting LFX amongst the Middle-East countries, besides
increasing visibility of the instruments by having dual listings on both exchanges. This was evidenced by the recent listing on
the BSE of the USD600 million Malaysia Global Sukuk which had a secondary listing on the LFX in 2002. This will be
reciprocated in the near future with listings of Sukuks issued by Bahrain authorities on the LFX.
Further efforts by LFX to tap into the Middle-East market, is the pending establishment of a formal working relationship
between LFX and the Bahrain-based International Islamic Financial Market (IIFM). This will further enhance LFX’s status as
being one of the leading offshore exchanges in the world of Islamic finance.
LFX also hopes to establish more formal working arrangements with other offshore exchanges worldwide as it seeks to be
recognised as the offshore exchange in Asia, thus bridging the gap between the investors in other parts of the world and Asia.
Besides creating awareness and interest in LFX, this will hopefully enhance the breadth and depth of the financial instruments
listed on LFX.
More innovative instruments, based on either conventional or Syariah principles, issued by the public and private sectors,
locally and internationally are also expected to be listed, such as the Sukuk and Labuan Depository Receipts.
Being a customer-friendly and market-driven exchange, LFX is always looking into ways to provide added value to its
customers. With this in mind, LFX is also enhancing its clearing and settlement capabilities by creating a link between LFX
and other international clearing and settlement systems, thus catering to a more global trading environment. In addition,
the appointment of a second service provider for the depository and settlement services for LFX will also be completed soon.
Listing
Sponsor
K & N Kenanga
Holdings Berhad
CIMB (Labuan)
Limited
* Note: As at November 2003
84
85
K U A L A K LU UA ML PA U LR U S
M TP OU CR K S ET XO CC HK A E
N XG CE H BA EN RG HE A B
D E R H A D
A N N U A L
R E P O R T
2 0 0 3
Securities Clearing Automated Network Services Sdn Bhd
2003 marks a year of rapid growth for Securities Clearing Automated Network Services Sdn Bhd (SCANS), driven by strong
Equities Settlement – Statistics
interest in the stock market in the second half of the year. 124.20 billion units of shares valued at RM206.34 billion was cleared
and settled by SCANS in 2003. This represents a growth of 98% and 56% respectively as compared to the number and value
of shares cleared for the previous year.
A total of 203,645 Institutional Settlement Service ("ISS") Buy and Sell instructions involving 18.02 billion units of shares valued
at RM77.54 billion was cleared and settled through ISS. The corresponding figures for 2002 were 198,485 ISS Buy and Sell
instructions involving 13.67 billion units of shares valued at RM68.77 billion.
Volume and Value of Shares Cleared
Total Shares Cleared
2002
2003
% Change
Volume
55,630,188,675
112,183,200,896
101.66%
Value (RM)
116,951,410,254
183,885,847,755
57.25%
On Market Transactions ("OMT")
Direct Business Transactions ("DBT")
Volume
7,114,331,483
12,017,045,978
68.91%
Developments for 2003
Value (RM)
14,903,786,777
22,452,434,897
50.65%
• Revision to the Timing of Settlement for Direct Business Transactions ("DBT") and Other Related ISS Payments
TOTAL OMT & DBT
Volume
62,744,520,168
124,200,246,874
97.95%
Value (RM)
131,855,197,031
206,338,282,652
56.49%
2002
2003
% Change
197,333
202,196
2.46%
Volume
13,176,588,702
16,987,400,098
28.92%
Value (RM)
67,357,221,242
74,702,678,127
10.91%
In seeking to enhance the settlement process, SCANS has been working towards implementing a revision of the timing of
settlement for DBT, and ISS payments relating to commission and turnaround proceeds for both ISS On-Market and ISS
Direct Business Transactions.
In relation to the above, the timing of settlement for securities and funds will be revised from 3.00p.m. to 12.00p.m., and
from 12.00p.m. to 11.00a.m. respectively, with effect from 12 January 2004.
ISS Instructions Cleared and Settled
The revised settlement times were determined pursuant to consultations with key market participants. Investors will
particularly benefit from this initiative, as it reduces investors’ settlement risk and exposure, due to earlier settlement of
securities and funds.
ISS Buy & Sell Instructions
OMT
No. of Transactions
• Clearing, Settlement and Depository Conference 2003
To promote the continuous development of the securities industry, SCANS and MCD jointly organised the Clearing,
DBT
Settlement and Depository Conference 2003, which was held on 23 July 2003 at the Shangri-La Hotel, Kuala Lumpur. The
No. of Transactions
theme for the Conference was "CSD: Delivering Market Efficiency", and topics presented included among others, an
Volume
overview of developments in clearing, settlement & depository in Europe; and a profile of next-generation post trade
Value (RM)
infrastructure. The Conference provided an opportunity for local industry participants to be updated on global
TOTAL OMT & DBT
developments, and also afforded an occasion for networking and exchange of ideas between local and foreign participants.
No. of Transactions
Participants of the Conference included representatives from SCANS and MCD Members comprising stockbroking
1,152
1,449
25.78%
497,152,159
1,032,096,602
107.60%
1,412,829,138
2,832,653,369
100.50%
198,485
203,645
2.6%
Volume
13,673,740,861
18,019,496,700
31.78%
Value (RM)
68,770,050,380
77,535,331,496
12.75%
companies and financial institutions/custodian banks, Bank Negara Malaysia, the Securities Commission, members of the
Asia-Pacific Central Securities Depositories Group ("ACG") and other associated organisations.
86
87
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
MDCH
2003 was a significant year for Malaysian Derivatives Clearing House Berhad (MDCH) in terms of development and
Margin Summary for 2003
achievements for the derivatives industry. It also marked another year of strong growth with total contracts cleared increasing
by 55%. Interest in Crude Palm Oil Futures ("FCPO") remained strong, with 1.4 million contracts cleared in 2003, a 57%
2002
(RM’000)
Product
volume increase from FY2002. A significant increase in volume by 86% was recorded for the 3-month KLIBOR Interest Rate
2003
(RM’000)
Change in
Average
Margin
Highest
Lowest
Average
Highest
Lowest
Average
FKLI
28,822
11,880
20,634
57,761
11,119
22,098
7.09%
OKLI
0
0
0
0
0
0
-
FKB3
15,052
10,689
12,105
39,662
10,708
17,933
48.15%
FCPO
89,676
24,921
47,145
156,368
57,009
80,403
70.54%
FMG5
13,422
1,046
7,626
12,514
254
6,061
-20.54%
positions. Cash held as margin increased to RM118 million as at 31 December 2003 vis-à-vis RM52 million held on 31
FMG32
n/a
n/a
n/a
870
0
226
-
December 2002. Collateral held as margin also increased to RM51 million as at end 2003 from RM37 million as at end 2002.
FMGA2
n/a
n/a
n/a
48
0
28
-
Futures ("FKB3"). The market also reacted positively to the downsizing of the Kuala Lumpur Composite Index Futures ("FKLI"),
recording an average daily volume of 2370 (20 Sep to 17 Dec 2003), vis-à-vis the average daily volume of 890 prior to the
downsizing (1 Jan to 19 Sep 2003). The modification facilitated retail investors’ access to the FKLI market by lowering the
margin requirements and break-even point.
Margin collected by MDCH also increased due to higher margin rates imposed and a higher average number of open
1
FKLI contract multiplier was downsized from 100 to 50 and the minimum tick movement increased from 0.1 to
0.5 on 19 September 2003. Total number of contracts cleared from 2 January 2003 to 18 September 2003:
157,585; 19 September 2003 to 31 December 2003: 173,633)
2
Contracts launched on 19 September 2003
3
FKLI Open Positions as at 31 December 2002: contract multiplier of 100; As at 31 December 2003: contract
multiple of 50)
Total Derivatives Contracts Cleared in 2003
Total No. of Contracts
2002
2003
% Change
FKLI1
233,863
331,218
41.63%
OKLI
1
0
n/a
FKB3
64,307
119,659
86.07%
FCPO
909,095
1,429,590
57.25%
FMG5
80,419
118,635
47.52%
FMG32
N/a
780
n/a
FMGA22
N/a
11
n/a
1,287,685
1,999,893
55.31%
TOTAL
Year End Margin Requirements by Product Group
RM (million)
Year End Open Position Summary in 2003
Total No. of Contracts
FKLI3
As at
31 Dec 2002
1,485
200
As at
31 Dec 2003
8,993
% Change
150
505.59%
OKLI
0
0
0
FKB3
21,114
18,977
-10.12%
FCPO
17,280
21,149
22.39%
FMG5
4,860
127
-97.39%
FMG32
n/a
50
n/a
FMGA2
n/a
0
n/a
TOTAL
44,739
49,296
10.19%
100
50
0
1997
1998
1999
■ Government Securities
88
2000
■ Interest Rate
2001
■ Equities Index
2002
2003
Year
■ Palm Oil
89
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
MDCH
• Launch of FMG3 & FMGA
• MDCH Settlement Price Methodology Review
The 3-year MGS Futures Contract ("FMG3") and the 10-year MGS Futures Contract ("FMG10") were successfully launched
The Settlement Price Methodology for all listed derivatives products was reviewed in June 2003 to assess the adequacy of
on 19 September 2003 pursuant to the successful launching of the 5-year MGS Futures Contract ("FMG5") on 29 March
the existing methodology. Some minor amendments were made to take into consideration the timing and the minimum
2002. In preparation for the introduction of these new products, MDCH was responsible for ensuring system readiness of
quantity of bid/offer quotes before market close, in order to contain manipulation of settlement prices via last minute
the Derivatives Clearing System ("DCS"); and establishing risk management policy and procedures, such as assessing the
bid/offer quotes. In addition, spread bid and offer quotes are now used in computing the best bid and offer for the FMG5
product risk profile, the setting of margining parameters and determining the settlement price methodology for the new
Contract, in order to narrow the price spread used for computing the daily settlement price of this product.
contracts.
• Shares as Collateral
With regards to FMG5, two reviews on the correlation between 3-Month Kuala Lumpur Interbank Offered Rate Futures
MDCH, in consultation with MDEX, has established infrastructure for the lodging of shares as margin collateral for derivatives
Contract ("FKB3") and FMG5 were conducted in February and September 2003 to analyse the possibility of a margin offset
trading, and is expected to launch this facility by 1st quarter 2004. This initiative will widen the types of non-cash collateral
between the two products. However, the studies revealed that the correlation between the two products was not significant
that can be used for derivatives trading, and will allow investors more flexibility in structuring their financial requirements to
enough to allow for margin offset.
meet initial margin obligations for derivatives trading.
• Negotiable Storage Receipts ("NSRs") Value to Offset Clients’ Debit Balances
Clients will be able to lodge selected shares with futures brokers that are also clearing members of MDCH. These shares
The increase in tender frequency (physical settlement) of the Crude Palm Oil Futures Contract ("FCPO") and the increase in
are then onward pledged to MDCH. These clients will be able to use the value of their shareholdings as margin deposit for
notional value due to higher prices for FCPO had resulted in recurring instances where clearing members were on the verge
derivatives trading, and will only be required to pay cash to meet mark-to-market losses due to daily price fluctuations of
of breaching their Adjusted Net Capital ("ANC") requirements. With effect from 1 October 2003, clearing members are now
their derivatives positions. Pledged shares will be re-valued at the end of each business day according to the closing price
allowed to offset the value of the NSR from their clients’ debit balances with the value of NSRs for computation of ANC.
of the shares, and is subject to a 30% haircut by MDCH to address the risk of share price fluctuations. MDCH has selected
12 shares to be accepted as collateral initially. The list of acceptable shares will be expanded in due course as the demand
• New Derivatives Clearing Funds Model
MDCH maintains a Clearing Fund for the purpose of indemnity against losses arising from the failure of any clearing
members, financial institutions or other clearing house organisations in performing their obligations. Currently, the Clearing
Fund solely comprises contributions from its clearing members.
for this facility grows. In addition, MDCH has also set concentration limits for each share and exposure limit for total shares
lodged as collateral.
• Palm Kernel Oil Futures Contract ("FPKO")
With the success of the FCPO Contract for the last two decades as an effective hedging and trading instrument for the palm
A new Clearing Fund model to determine adequacy of Clearing Funds was implemented on 1 September 2003. The new
oil market, another palm oil related contract in the form of FPKO will be launched in the first half of 2004.
model made improvements to the existing model incorporating enhancements in terms of default assumptions, stress
condition, and other input parameters used. The enhancement is in line with the development of more derivatives products
As preparation for the launch of this new contract, MDCH has already completed the testing for the readiness of the DCS,
listed, consolidation of the market which resulted in fewer clearing members, and a general increase in open positions.
established risk management policy and procedures, determined the margin requirement and the settlement price
Some of the shortcomings in the existing model due to unavailability of market data have also been subsequently rectified.
methodology.
• Other Initiatives
MDCH is in the process of formulating the rules and operational procedures in relation to the clearing of over-the-counter
contracts. MDCH is currently in discussions with potential market players and the regulators and is targeting to launch this
initiative during the first half of 2004.
90
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K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Malaysian Central Depository Sdn Bhd
Malaysian Central Depository Sdn Bhd ("MCD") celebrated its 10th anniversary of operations in 2003, with a record of
impressive development for the last past 10 years. MCD has along the way contributed positively to the development of the
securities industry through its securities immobilisation exercise and book-entry movement of securities.
As testimony to the growth of MCD, the number of Central Depository System ("CDS") accounts maintained with MCD has
increased from 181,000 accounts in 31 December 1993 to more than 3.2 million accounts in December 2003. Similarly, the
number of securities immobilised with MCD has increased from 663 million securities in December 1993 to more than 260
billion securities as at December 2003.
• Enhancement to Public Issue and Corporate Action Verification Processes
The Public Issue and Corporate Action module was enhanced in May 2003 to further expedite the processing of allotment
tape verification. The enhancement was introduced after consultations with the Share Registrars and Issuing Houses, and
incorporation of the feedback received, to ensure practical and user friendly processes are implemented.
This enhancement would allow for partial confirmation of allotment verification records. The Share Registrars and Issuing
Houses are no longer required to re-submit the entire allotment records to MCD for re-verification in the event that allotment
records verified by MCD contain rejection records. Subsequently, the processing time taken to verify allotment verification
tapes has been reduced by 30% percent. This enhancement provides Share Registrars and Issuing Houses with better
MCD will continue to support and participate actively towards the
control in managing their back office processes in completing fund raising corporate activities, which will ultimately benefit
development of an efficient securities industry by emphasiszing on
the market players, namely Issuers, Investors and Financial Intermediaries.
development projects that support its participants’ and market
intermediaries’ back office processes.
• Ownership of Malaysian Central Depository Sdn Bhd (MCD)
2003 year marked a change in MCD’s shareholding structure. On 13 May 2003, KLSE increased its shareholding in MCD
from 55% to 75%, by acquiring the 20% stake in MCD previously held by Ambilan Tradisi Sdn Bhd.
Central Depository Operations – Statistics
Pursuant to the acquisition, MCD is now 75% owned by KLSE, with ABM-MCD Holdings Sdn Bhd holding the remaining
Operational Summary
2002
2003
% Change
Records of Depositors Produced
13,498
14,737
9.18%
Transfers
(No. of Transactions)
731,381
866,952
18.54%
CDS Accounts Opened
251,784
262,172
4.13%
25% of MCD shares.
• Enhancement to Transfer of Securities Request Form
MCD introduced a new Transfer of Securities Request Form in July 2003. Amendments were made to the Form to allow
the Transferor to transfer more than one securities using a single Form.
The amendments were made pursuant to a study that has indicated that approximately 30 % of investors transfer more
than one securities at any one time. The new Form will reduce the time taken by the investors in completing their transfer
requests. In addition, Authorised Depository Agents ("ADAs") will be able to improve their efficiency in processing transfer
• Standard Board Lot Size
of securities requests, whilst continuing to maintain high standards of security control.
• Reduction of Time to Market for Initial Public Offering (IPO)
The Kuala Lumpur Stock Exchange ("KLSE") implemented the Standard Board Lot ("SBL") size of 100 units for the trading
In December 2003, the Securities Commission approved a new timeline for the completion of IPO processing. Pursuant to
of securities on KLSE in April 2003. Prior to the introduction of SBL, there were three types of board lot sizes traded on the
the implementation of the new timeline from T+25 to T+13, IPO processing must be completed to enable the listing of the
KLSE, namely 100 units for counters traded on the MESDAQ market, 200 units for selected counters, whilst the remaining
IPO securities by T+13 from the date of the issuance of the prospectus. The revised timeline was determined through
counters were traded at 1,000 units.
numerous consultations with the market institutions involved in IPO exercises. The shortening of the IPO timeline will further
elevate KLSE’s status as a premier source for fund raising.
The purpose of implementing SBL is to facilitate the investment in high quality securities that are relatively expensive; add
liquidity to the stock market; and enable odd lot holders to trade their securities. It is also envisioned that the initiative will
To facilitate the implementation of the T+13 IPO timeline, CDS accounts are now mandatory for all IPO applicants.
attract new investors to the stock market.
Prospective IPO applicants who do not have a CDS account are encouraged to open their CDS accounts through the
network of ADAs’ principal offices and branches available throughout the country. The opening of CDS accounts is
MCD facilitated the introduction of SBL by supporting the book-entry settlement of securities traded on KLSE. Securities
executed on-line through the CDS.
immobilised with MCD are in tangible form, thus providing continuity in book-entry transactions to the investors before and
after implementation of SBL.
92
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K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
In today’s economy, where information is a driving force in investment decision-making, KLSE Information Services Sdn Bhd
6. New Products and Services. KLSE IS is currently developing a range of new information products and services to be
(KLSE IS) positions itself as a premier source of stock market information in Malaysia. KLSE IS provides accurate, reliable
launched soon. These include media products, like news services and those that deliver news in all dimensions of
data and strives to deliver information via various mediums in an endeavour to give its customers the maximum advantage
multimedia: text, television images, still pictures, sound and graphics and risk management products, that include analytical
they expect.
tools and information to users to manage their financial, investment and business risks wisely.
About KLSE IS
KLSE IS will also launch on-line real-time market quote services and historical information accessing facilities. This will
KLSE IS, formerly known as KLSE-Bernama Real-Time Information Services Sdn Bhd (KULBER), is a wholly owned subsidiary
enable buyers to access real time market data and historical data both on equities or derivatives markets via the internet.
of the KLSE. KLSE IS compiles and disseminates comprehensive market information on the Malaysian stock market, both real
KLSE IS will also be undertaking web hosting services, in order to provide comprehensive services enabling clients to
time and historical, as well as develops and markets, value added information products and services. The target markets for
optimally design their internet homepage, from concept through to the web-site designing, right up to the development of
KLSE IS include intermediaries, institutional investors, private investors, the academia, the media, the Government sector and
appropriate information products and their hosting. KLSE IS advantage as the source for the information from KLSE,
the investing public. KLSE IS is a market-oriented, technology driven entity, which aims to leverage and maximise the potential
guarantees the highest level of authenticity and neutrality. Applications will be customised to individual requirements. These
of the intellectual resources. The main objectives of KLSE IS are to be market-driven and customer service oriented, to be
services will include consultancy, development, content and hosting.
efficient, reliable and timely in providing high quality market information products and services, and to maintain a motivated
and creative work team.
For the information services business in the KLSE Group and for KLSE IS, the financial period under review, from 31 December
The Products and Services of KLSE IS
KLSE IS has the advantage of being the distributor of KLSE’s information assets. Currently, KLSE IS offers the following
2002 to 31 December 2003 was an eventful one. New management and staff structures were established and new business
and corporate strategies were drawn up to move forward in KLSE Group.
standard information products for sale.
In the year 2003, KLSE IS focused on customer relations management, with a view to understand customer needs, to improve
1. Real-Time Information, both equities and derivatives which comprises of a range of market data such prices, volumes and
indices, all of which are available on each market day.
customer services and to establish good relationships with existing customers. KLSE IS has also explored new horizons for
information products and services and met with numerous businesses in the industry in considering strategic business
alliances.
2. Delayed Information, which comprises of the opening, high, low, closing and volumes of all equities traded on Kuala
Lumpur Stock Exchange available at approximately 1700h Kuala Lumpur local time from Mondays to Fridays.
KLSE IS met with its customers and stakeholders in 2003 in an endeavour to establishing quality relationships, exploring
business opportunities and exchanging knowledge.
3. Indices, which includes the KLSE Composite Index as well as indices for all sectors available on a real-time or a delayed
basis.
As information is the key to prudent investment in the financial market and as timely accurate information is crucial in
promoting informed investing, KLSE IS is poised to play a significant role in meeting the needs of its customers today.
4. Historical Data Services and Products, which includes company database, share prices, stock indices, market valuation
data, financial ratios by companies and sectors and company announcements.
5. Updating Services for Subscribers, which includes mainly periodic updating services for historical information. This service
is often customised according to customer needs. Other related services include search for legal firms on stock and shares
information.
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The year 2003 is the first full year that KLSE Technology operates as a commercial entity. The focus for the year has been on
4. Business Development
the internal development of the company to transform itself into a service-based organisation. At the same time, we have also
• Customer Relationship management
invested substantial time and effort to work with our customers, albeit the business units within the KLSE Group, to ensure
• Organisational development
they are comfortable with the new business-based relationship and to also better utilise the IT services offered by KLSE
• Product and Service development
Technology.
Activities and Projects
In general, we have made significant progress in the tasks that we have set for ourselves. KLSE Technology is now in a better
The customers served by KLSE Technology comprise the companies within the KLSE Group and Member Companies of the
position to be an IT service provider to KLSE and the industry.
Exchanges. Key projects and activities undertaken by KLSE Technology include:
• The continuous enhancements of KLSE Trading Systems to include new products to be traded, additional features for the
Services and Business Units of KLSE Technology
supervision of the market and to improve operational efficiency
The business units of KLSE Technology have been aligned with our aspiration of becoming a full-fledge IT Service company.
• Enhancements to the systems and network infrastructures of the KLSE Group and Member Companies
The following are the business units and the services provided by each.
• Preparation of site and infrastructure for Member Companies
• Management and development of updates for office automation facilities
1. IT Development and Services
• Creation of new information systems and modules for business units of the KLSE Group
• The provision and maintenance of Information Systems across a number of technology platforms, including:
• Systems impact and requirement studies for KLSE’s Common Trading Platform initiative
i. Tandem, Guardian
• Planning for technology alliance joint venture
ii. Amdahl, VSE/ESA
• Outsourcing study for the KLSE Group
iii. Alpha, Open VMS
• KLSE Group Business Continuity Plans
iv. Sun, Solaris
• Workshops, Training and familiarisation sessions
v. Windows
• Plan and organisation update
vi. Unix
• The inclusion of MDCH within the KLSE BCP
• Testing of Plans
• The provision of services for IT related exercises such as Project Management, Systems and Products acquisition and User
Education
• Presentation of papers at conferences
• The introduction of internal procedures for the management of services provided
• The compilation of services provided within a common service catalogue
2. Business Continuity Services
• The implementation and update of Business Continuity Plans (BCP)
• Ensure readiness of Customers’ BCP
3. Facilities Management
• The operations of Information Systems to deliver information as required by customers in a cost-effective manner
• The provision of network services for users of Information Systems, both internal and external
• The management of IT operating sites and IT Assets including the installation of equipment and IT Assets
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Calendar of Events 2003
14 January 2003
12 April 2003
Venture 2002 “Malaysia’s Business Plan
Competition” Awards Presentation
8th RIIAM Convocation
10 winners were presented with awards and cash
Investment Analysis programme received their scrolls at
prizes presented by the Deputy Prime Minister YAB
the Graduation Ceremony held at the KLSE on 12 April
Dato’ Seri Abdullah Haji Ahmad Badawi at the Final
2003.
A total of 95 graduates of the RIIAM Diploma in
Awards Presentation Ceremony.
20 - 27 April 2003
23 January 2003
Minggu Saham Amanah Malaysia 2003
Minister of State for Finance, Uganda and Capital
Markets Authority of Uganda visits KLSE
11 March 2003
KLSE hosted a visit by Honourable Professor Peter
KLSE Corporate Awards 2002
Presentation Ceremony
Kasenene, Minister of State for Finance, Uganda and
KLSE participated in the Minggu Saham Amanah
Malaysia 2003 held at the Merdeka Stadium, Kuala
Lumpur from 20 - 27 April 2003. Apart from public
A total of 900 representatives from over 400 public
briefings conducted, members of the public were also
listed companies attended the third KLSE Corporate
able to get additional investment information and
20 - 25 February 2003
Awards Presentation Ceremony. The event was graced
advice on securities and derivatives investments from
Non-Aligned Movement (NAM) Summit
by the Acting Prime Minister, YAB Dato’ Seri Abdullah Haji
the KLSE Information Booth set-up at the week long
In conjunction with the 13th Non-Aligned Movement
Ahmad Badawi.
exhibition.
Capital Markets Authority of Uganda and delegation.
(NAM) Summit, KLSE set up an information kiosk from
25 April 2003
20 - 25 February 2003. The primary objective of the
KLSE-PwC
KLSE Information Kiosk was to update participants and
Survey 2002
members of the media on recent developments in the
The KLSE-PwC Malaysian Corporate Governance
Malaysian capital market and securities industry.
Survey 2002 was launched by the Deputy Minister of
Malaysian
Corporate
Governance
Finance I, YB Dato’ Dr. Haji Shafie Mohd Salleh. The
KLSE-PwC Corporate Governance survey 2002 is a
follow up to the first joint survey conducted in 1998.
10 May 2003
26th KLSE Annual General Meeting and KLSE Annual
Members’ Dinner 2003
The KLSE’s 26th Annual General Meeting was held on 10 May
2003 at the Exchange Square, Bukit Kewangan, while the
Members’ Dinner 2003 was held that evening at Mandarin
Oriental Hotel, Kuala Lumpur. The Members’ Dinner was
graced by the Minister of Finance II, YB Dato’ Dr Jamaluddin
bin Mohd Jarjis.
23 May 2003
17-19 March 2003
Annual Palm & Lauric Oils Conference & Exhibition
MDEX organised its Annual Palm & Lauric Oils
Conference & Exhibition: Price Outloook 2003 / 2004
from 17 - 19 March 2003 in Kuala Lumpur. This was the
14th event in this series.
3 March 2003
Seminar on Going Public on the MESDAQ Market
26 March 2003
The inaugural seminar on Going Public on the
MESDAQ Market which was held in Penang on 3
Dinner in Conjunction with the Fifth Asian
Roundtable on Corporate Governance
March 2003 was officiated by the Chief Minister of
KLSE co-hosted a dinner with Securities Commission
Penang, YAB Tan Sri Dato’ Dr Koh Tsu Koon. Similar
in conjunction with the Fifth Asian Roundtable on
seminars were subsequently held in Melaka on 3
Corporate Governance organised by the Organisation
August 2003, in Johor Bahru on 4 August 2003 and in
for Economic Co-operation and Development (OECD)
Kuching on 21 October 2003.
on 26 March 2003. A special dinner address was
Primary Listing of AM-Macquarie Sovereign Plus Fund on LFX
The primary listing on LFX of AM-Macquarie Sovereign Plus
Fund by Australian fund management group, Macquarie
Investment Services Limited served to enhance LFX’s attraction
as an offshore exchange that offers a platform for the listing of
a wide range of financial products, both local and international.
26 May 2003
Implementation of standard board lot of 100 units
All securities listed on the KLSE are traded in standard board lot
of 100 units effective 26 May 2003. The conversion exercise
was completed in stages with the first implementation on 7 April
2003 which saw the initial conversion of 350 counters on the
Second Board.
delivered by YBhg Tan Sri Dato’ Sri Dr Zeti Akhtar Aziz,
Governor, Bank Negara Malaysia.
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23 July 2003
Clearing, Settlement and Depository
Conference 2003
The
3rd
Clearing,
Settlement
and
Depository
Conference was held on 23 July 2003. In line with this
year’s theme - “CSD : Delivering Market Efficiency” - the
active and constructive discussions on issues facing
the current CSD environment during the conference
resulted in practical and useful ideas towards further
12 August 2003
28 August 2003
29 May 2003
improvement of the marketplace, to be more secure,
Visit by Group of ex-Ministers of Malaysia
Visit by YB Dato’ Dr Ng Yen Yen, Deputy Minister of
Presentation Ceremony for Yayasan BSKL Award
for Excellent Results and School Assistance
Scheme for Children
efficient and cost-effective.
KLSE hosted a visit by the Group of ex-Ministers of
Finance II and KLSE Group Merdeka Lunch
Malaysia (GEM) on 12 August 2003. GEM is a group of
Deputy Minister of Finance II, YB Dato’ Dr Ng Yen Yen
former cabinet ministers of Malaysia that meets monthly
paid a visit to the KLSE on 28 August 2003. In
for luncheon meetings to apprise themselves of
conjunction with this visit, a lunch for the KLSE Group
developments in key sectors of the economy and
Staff was held to celebrate Merdeka Day. Yayasan
government.
BSKL contributed RM250,000.00 to 25 charitable
Yayasan BSKL awarded certificates of academic
excellence and cash prizes to children of KLSE staff
from Standard Six to Form Six who had achieved
excellent results in the UPSR, PMR, SPM and STPM
organisations from various states in Malaysia. YB Dato’
examinations in 2002.
Dr Ng Yen Yen presented the cheques to the charitable
organisations at the lunch.
3 June 2003
KLSE Annual Dialogue Sessions
KLSE commenced its annual dialogue sessions with
industry partners on 3 June 2003. A total of 11
27 July 2003
sessions were held in 2003. This annual series of
dialogues was initiated for the purpose of discussing
KLSE Signed MoU with Stock Exchange
of Thailand
current issues of mutual interest with industry partners.
KLSE signed a Memorandum of Understanding (MoU)
with the Stock Exchange of Thailand to facilitate the
development of channels of communication and to foster
continuing relationship between the two exchanges.
12 August 2003
KL Annual Rat Race 2003
Yayasan BSKL hosted the fourth KL Annual Rat Race
organised by The Edge Malaysia on 12 August 2003. A
13 September 2003
total of RM556,000.00 was collected from the Race
Bilateral Golf Tournament between KLSE and SET
and this was subsequently donated to 8 beneficiary
The Bilateral Golf Tournament between Kuala Lumpur
organisations.
Stock Exchange (KLSE) and The Stock Exchange of
Thailand (SET) was held from 12 - 13 September 2003
24 - 28 August 2003
PORIM International Palm Oil Congress (PIPOC)
The
18 July 2003
KLSE - AtosEuronext Alliance for
Technology Enhancement
KLSE signed the heads of agreement with AtosEuronext
Malaysia
Derivatives
Exchange
(MDEX)
participated in the PORIM International Palm Oil
9 August 2003
on 18 July 2003 to form an alliance towards enhancing
14th Annual KLSE-FPLC Golf Tournament
& Luncheon
the technology development initiatives of the Exchange
The 14th Annual KLSE-FPLC Golf Tournament &
and the Malaysian securities industry.
Luncheon was held at the Palm Garden Golf Club, IOI
Congress (PIPOC) organised by the Malaysian Palm Oil
Board from 24 - 28 August 2003.
at The Mines Resort and Golf Club, Sungei Besi. The
objective of the event is to enhance the close working
relationship between the 2 exchanges. First held in
1989, the tournament was put on hold in 1997 due to
the Asian financial crisis and revived in 2002. The 2003
event culminated with a farewell dinner and prize giving
ceremony at the Malaysian Petroleum Club, at KL’s
iconic Petronas Twin Towers.
Resort, Putrajaya on 9 August 2003. SPB Yang
diPertuan Agong, Tuanku Syed Sirajuddin Ibni AlMarhum Tuanku Syed Putra Jamalullail was the guest
of honour at the annual tournament.
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17 November 2003
Majlis Berbuka Puasa and Solat Tarawih
In celebrating the month of Ramadhan, a Majlis
Berbuka Puasa and Solat Tarawih was held at the
Exchange on 17 November 2003. 40 children from
Asrama Kebajikan Anak Yatim Sekendi and 40 students
from Sekolah Tahfiz, Sungai Buloh joined the KLSE
Group Staff at this annual event.
17 September 2003
1 December 2003
Launch of Venture Accelerate 2003
Venture Accelerate 2003 was launched by YBhg Dato’
Mustapa Mohamed, Executive Director, National
Economic Action Council (NEAC) on 17 September
2003. Venture Accelerate 2003 is an extension of
Venture 2001 and Venture 2002, the Malaysian
Business Plan Competition.
Introduction of Share Splits
KLSE introduced share splits to further enhance the
liquidity and marketability of shares listed on the KLSE.
The introduction of share splits will result in the creation
of new shares, thereby increasing the number of shares
that each shareholder owns, albeit at a lower par value.
In contrast to Venture 2001 / 2002, which focused on
helping budding entrepreneurs with the development of
convincing business plans, Venture Accelerate 2003
focuses strongly on coaching a select number of
aspiring entrepreneurs that show strong potential for
funding.
4 October 2003
Annual Sukaneka 2003
160 children from 8 homes and an Orang Asli
community
and
KLSE
Group
Staff’s
children
14 December 2003
participated in the Annual Sukaneka 2003 organised by
Badminton Clinic
Yayasan BSKL on 4 October 2003.
A Badminton Clinic attended by 60 youths (45 orphans
5 November 2003
and 15 KLSE Group Staff children) was organised by
KLSE Signs S & P Agreement with Symphony House
on Sale of MSRS
KLSE and Symphony House Berhad (Symphony)
signed a Sale and Purchase Agreement for the
proposed disposal of Malaysian Share Registration
Services Sdn Bhd (MSRS) by KLSE to Symphony.
102
Yayasan BSKL at the Stadium Juara, Bukit Kiara. The
clinic was led by national badminton coach, Misbun
Sidek. The objective of the programme was to create
interest amongst the youths in orphanages in
badminton and to coach them in the skills of the sports
as well as to nurture potential talents.
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From
Strength
to
Strength
Sound Regulations
• Enhanced Disclosure
• Heightened Transparency
• Greater Accountability
• Effective Enforcement
• Increased Protection of Shareholders’ Interest
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REGISTERED OFFICE
Bukit Kewangan
Financial Statements
50200 Kuala Lumpur
COMMITTEE MEMBERS
Dato’ Mohammed Azlan bin Hashim
Datuk Mohaiyani binti Shamsudin
Yusli bin Mohamed Yusoff
Tan Kim Leong, JP
Abdul Kadir bin Haji Md Kassim
Abdul Jabbar bin Abdul Majid
Datin Mariam Prudence bt Yusof
Abdul Rauf bin Ramli
SECRETARY
Azman Shah bin Md. Yaman
AUDITORS
Ernst & Young AF : 0039
Chartered Accountants
contents
Report of The Directors
Statement By The Directors
Statutory Declaration
Report Of The Auditors
Income Statements
Balance Sheets
Statement Of Changes In Equity
Cash Flow Statements
Notes To The Financial Statements
106
108 - 110
111
111
112
113
114 - 115
116 - 117
118 - 119
120 - 148
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Report of the Directors
MEMBERSHIP FEES/SHARE CAPITAL (CONTD.)
(iii) During the year, a sum of RM2,836,455 (2002: RM13,157,993) has been charged against the Membership fees for
advisory fees paid for the demutualisation of the Company. The advisory fees incurred are not in the normal course of
operations of the Company.
Following the conversion of the Company to a public company limited by shares subsequent to the end of the financial year
on 5 January 2004, the Company:
REPORT OF THE DIRECTORS
(a) created 1,000,000,000 ordinary shares of par value RM0.50 each as authorised share capital of RM500,000,000; and
The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the
(b) issued 500,000,000 ordinary shares of par value of RM0.50 each, by way of capitalisation of Membership fees and
accumulated funds, as issued and paid-up share capital of RM250,000,000.
Company for the financial year ended 31 December 2003.
PRINCIPAL ACTIVITIES
COMMITTEE MEMBERS/DIRECTORS
The principal activities of the Company were to provide, regulate and maintain facilities for conducting the business of a stock
The names of the Committee Members/Directors of the Company in office since the date of the last report and as at the date
exchange in Malaysia. Following the demutualisation exercise, subsequent to the end of the financial year on 5 January 2004,
of this report are:
the Company's stock exchange business was vested and transferred to Malaysia Securities Exchange Berhad, a wholly
owned subsidiary of the Company. Thereafter, the principal activity of the Company is that of an exchange holding company.
Dato’ Mohammed Azlan bin Hashim
Datuk Mohaiyani binti Shamsudin
The principal activities of the subsidiaries are described in Note 9 to the financial statements.
Tan Kim Leong, JP
Abdul Kadir bin Haji Md Kassim
There have been no significant changes in the nature of the principal activities during the financial year.
Abdul Jabbar bin Abdul Majid
RESULTS
Datin Mariam Prudence bt Yusof
Group
Company
RM
RM
59,875,419
58,153,126
Abdul Rauf bin Ramli
The Committee Members in office as at 5 January 2004 were deemed to be the inaugural board of directors when the
Net surplus for the year
There were no material transfers to or from reserves or provisions during the financial year, other than as disclosed in the
statements of changes in equity.
Company was converted to a public company limited by shares on that date.
DIRECTORS’ BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the
In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were
not substantially affected by any item, transaction or event of a material and unusual nature, other than the effects arising from
Company was a party, whereby the directors might acquire benefits by means of acquisition of shares in or debentures of the
Company or any other body corporate, other than as described in the following immediate paragraph.
Following the demutualisation exercise of the Company and the conversion of the Company to a public company limited by
the change in accounting policy as disclosed in Note 28 to the financial statements.
shares on 5 January 2004, stockbroking companies and remisiers were allotted ordinary shares in the Company. Stockbroking
companies in which Datuk Mohaiyani binti Shamsudin, Datin Mariam Prudence binti Yusof and Peter Leong Tuck Leng have
MEMBERSHIP FEES/SHARE CAPITAL
interest in were allotted shares in the Company. Abdul Rauf bin Ramli being previously a remisier was also allotted shares in
As at 31 December 2003:
the Company.
(i) Membership fees received from past and present Members at RM10,000 each amounted to RM2,960,000 (2002 :
RM2,960,000); and
Since the end of the previous financial period, no director has received or become entitled to receive a benefit (other than the
fixed salary of a full-time employee of the Company, reimbursement of expenditure incurred in attending committee meetings
(ii) a total contribution of RM94,000,000 (2002 : RM94,000,000) was received from Members as follows:
Number of Members
1 Jan
31 December
2003
Additions
2003
5
51
6
-
5
51
6
62
-
62
in the form of meeting allowances and any other benefits in kind as shown in Note 5 to the financial statements) by reason of
Total Contributions
a contract made by the Company or a related corporation with any director or with a firm of which he is a member, or with a
Contribution
per Member
RM’000
Brought
forward
RM’000
Additions
RM’000
Carried
forward
RM’000
5,000
1,000
3,000
25,000
51,000
18,000
-
25,000
51,000
18,000
94,000
-
94,000
company in which he has substantial financial interest.
DIRECTORS’ INTERESTS
During the financial year, the Company was a company limited by guarantee and, thus, has no shares in which the directors
could have an interest. Similarly, the Company has not issued any debentures.
None of the directors in office at the end of the financial year had any interest in shares in its related corporations during the
As a result of the consolidation of the stockbroking industry, the number of Members in operation as at the end of the
financial year.
financial year was 38 (2002: 40).
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OTHER STATUTORY INFORMATION
Statement by the Directors
(a) Before the income statements and balance sheets of the Group and of the Company were made out, the directors took
reasonable steps:
PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for
doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had
been made for doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the
ordinary course of business had been written down to an amount which they might be expected so to realise.
(b) At the date of this report, the Company are not aware of any circumstances which would render:
(i) the amount written off for bad debts or the amount of the provision for doubtful debts inadequate to any substantial
extent; and
We, DATO' MOHAMMED AZLAN BIN HASHIM and DATUK MOHAIYANI BINTI SHAMSUDIN, being two of the directors of
KUALA LUMPUR STOCK EXCHANGE BERHAD, do hereby state that, in the opinion of the directors, the accompanying
financial statements set out on pages 113 to 148 are drawn up in accordance with applicable Approved Accounting
Standards in Malaysia and the provisions of the Companies Act, 1965 so as to give a true and fair view of the financial position
of the Group and of the Company as at 31 December 2003 and of the results and the cash flows of the Group and of the
(ii) the values attributed to current assets in the financial statements of the Group and of the Company misleading.
(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render
adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or
Company for the year then ended.
Signed on behalf of the board in accordance with a resolution of the directors
inappropriate.
(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial
statements of the Group and of the Company which would render any amount stated in the financial statements
misleading.
DATO' MOHAMMED AZLAN BIN HASHIM
(e) As at the date of this report, there does not exist:
DATUK MOHAIYANI BINTI SHAMSUDIN
Kuala Lumpur, Malaysia
(i) any charge on the assets of the Group and of the Company which has arisen since the end of the financial year which
13 February 2004
secures the liabilities of any other person; or
(ii) any contingent liability in respect of the Group or of the Company which has arisen since the end of the financial year.
(f) In the opinion of the directors:
(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve
months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet
their obligations when they fall due; and
Statutory Declaration
(ii) other than the change in principal activity of the Company on demutualisation, no item, transaction or event of a material
and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is
PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
likely to affect substantially the results of the operations of the Group or of the Company for the financial year in which
this report is made.
SIGNIFICANT EVENTS
I, LEW LUP SEONG, being the officer primarily responsible for the financial management of KUALA LUMPUR STOCK
The significant events during the financial year are disclosed in Note 32 to the financial statements.
EXCHANGE BERHAD, do solemnly and sincerely declare that the accompanying financial statements set out on pages 113
to 148 are in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by
SUBSEQUENT EVENTS
virtue of the provisions of the Statutory Declarations Act, 1960.
The subsequent events are disclosed in Note 33 to the financial statements.
Subscribed and solemnly declared by the
AUDITORS
abovenamed LEW LUP SEONG
The auditors, Ernst & Young, have expressed their willingness to continue in office.
Signed on behalf of the Board in accordance with a resolution of the directors
at Kuala Lumpur in the Federal Territory
on 13 February 2004.
LEW LUP SEONG
Before me,
DATO' MOHAMMED AZLAN BIN HASHIM
DATUK MOHAIYANI BINTI SHAMSUDIN
13 February 2004
110
111
K U A L A
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B E R H A D
A N N U A L
for the year ended 31 December 2003
TO THE SHAREHOLDERS OF
KUALA LUMPUR STOCK EXCHANGE BERHAD (Incorporated in Malaysia)
We have audited the accompanying financial statements set out on pages 113 to 148. These financial statements are the
responsibility of the Company's directors. Our responsibility is to express an opinion on these financial statements based on
our audit.
Note
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
2 0 0 3
Income Statements
Report of the Auditors
We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia. Those standards require
R E P O R T
Revenue
3
Other operating income
statements. An audit also includes assessing the accounting principles used and significant estimates made by the directors,
4
Group
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
Company
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
223,031,166
245,798,926
196,953,083
217,715,736
81,354,360
101,857,437
36,392,730
55,674,415
304,385,526
347,656,363
233,345,813
273,390,151
(97,025,569)
(129,577,566)
(56,053,830)
(71,906,743)
as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable
Staff costs
basis for our opinion.
Depreciation
(18,466,170)
(37,415,456)
(12,838,065)
(28,150,379)
Other operating expenses
(93,155,106)
(149,708,068)
(74,718,072)
(113,300,764)
In our opinion:
Surplus from operations
5
95,738,681
30,955,273
89,735,846
60,032,265
(a) the financial statements have been properly drawn up in accordance with the provisions of the Companies Act, 1965 and
Finance costs
6
(186,860)
(302,479)
(6,444)
-
95,551,821
30,652,794
89,729,402
60,032,265
(30,200,393)
(12,570,224)
(31,576,276)
(28,302,978)
Net surplus
65,351,428
18,082,570
58,153,126
31,729,287
Minority interests
(5,476,009)
(4,529,510)
-
-
Net surplus for the year/period
59,875,419
13,553,060
58,153,126
31,729,287
applicable Approved Accounting Standards in Malaysia so as to give a true and fair view of:
Surplus before taxation
(i) the financial position of the Group and of the Company as at 31 December 2003 and of the results and the cash flows
Taxation
of the Group and of the Company for the year then ended; and
(ii)the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and
(b) the accounting and other records and the registers required by the Act to be kept by the Company and by its subsidiaries
7
of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.
We have considered the financial statements and the auditors' reports thereon of the subsidiaries of which we have not acted
as auditors, as indicated in Note 9 to the financial statements, being financial statements that have been included in the
consolidated financial statements.
We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of
the Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial
statements and we have received satisfactory information and explanations required by us for those purposes.
The auditors' reports on the financial statements of the subsidiaries were not subject to any qualification and did not include
any comment required to be made under Section 174(3) of the Act.
Ernst & Young
Wong Kang Hwee
AF: 0039
No. 1116/01/06(J)
Chartered Accountants
Partner
13 February 2004
The accompanying notes form an integral part of the financial statements.
112
113
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Balance Sheets
as at 31 December 2003
Balance Sheets
as at 31 December 2003
Group
2003
RM
Note
2002
RM
Company
2003
RM
2002
RM
FINANCED BY:
Group
2003
RM
Note
2002
RM
Company
2003
RM
Membership fees
2002
RM
NON-CURRENT ASSETS
8
311,547,195
323,526,405
306,777,812
312,208,738
Investment in subsidiaries
9
-
-
124,702,498
66,131,704
Loan stocks from subsidiary
10
-
-
2,000,000
2,000,000
Other investments
11
248,986,359
212,639,581
150,874,108
89,174,621
Staff loans receivable
12
41,463,813
44,548,171
40,234,021
42,779,495
Net goodwill
13
51,092,071
51,957,581
33,179,972
35,023,304
Deferred tax assets
14
3,967,957
5,995,905
1,357,759
4,543,552
657,057,395
638,667,643
659,126,170
551,861,414
16,087,789
11,853,665
12,323,063
117,237
CURRENT ASSETS
Cash and bank balances
Short term deposits
15
792,321,347
798,091,901
210,554,907
360,864,675
Receivables
16
57,562,272
36,082,653
21,181,573
12,552,282
10,277,658
6,067,947
8,701,828
-
206,674,239
161,847,087
206,668,104
161,847,087
4,006,829
5,414,694
3,001,000
4,820,732
-
-
14,635,635
8,440,259
1,086,930,134
1,019,357,947
477,066,110
548,642,272
Tax recoverable
17
Due from Compensation Funds
Due from subsidiaries
Accumulated funds
Capital reserve
22
80,965,552
83,802,007
80,965,552
83,802,007
1,329,118,544
1,269,243,125
938,019,593
879,866,467
15,149,962
14,949,963
-
-
(5,300)
(6,101)
-
-
1,425,228,758
1,367,988,994
1,018,985,145
963,668,474
14,638,198
18,287,342
-
-
1,439,866,956
1,386,276,336
1,018,985,145
963,668,474
Foreign exchange reserve
Property, plant and equipment
Short term investments
21
18
Minority interest
Retirement benefit obligations
23
24,937,167
24,644,877
14,961,619
16,053,676
Deferred income
24
2,831,203
2,831,203
-
-
Long term borrowings
25
1,098,500
1,318,200
-
-
Long term liability
26
47,797,254
48,335,815
47,797,254
48,335,815
76,664,124
77,130,095
62,758,873
64,389,491
1,516,531,080
1,463,406,431
1,081,744,018
1,028,057,965
CURRENT LIABILITIES
Short term borrowings
25
219,700
219,700
-
-
Due to subsidiaries
19
-
-
3,467,106
3,539,151
8,829,493
37,492,388
-
37,443,613
153,214,548
111,986,167
-
-
65,192,708
44,920,904
50,981,156
31,462,957
227,456,449
194,619,159
54,448,262
72,445,721
859,473,685
824,738,788
422,617,848
476,196,551
1,516,531,080
1,463,406,431
1,081,744,018
1,028,057,965
Taxation
Trade payables
Sundry payables
NET CURRENT ASSETS
20
114
115
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Membership
Fees
RM
Capital
Reserve
RM
Foreign
Exchange
Reserve
RM
Accumulated
Funds
RM
Total
RM
96,960,000
13,749,969
(6,099)
1,250,312,419
1,361,016,289
-
-
-
5,377,646
5,377,646
96,960,000
13,749,969
(6,099)
1,255,690,065
1,366,393,935
Currency translation differences
-
-
(2)
-
(2)
Demutualisation cost (Note 21)
(13,157,993)
-
-
-
(13,157,993)
Net surplus for the period (restated)
-
-
-
13,553,060
13,553,060
Issuance of preference shares (Note 22)
-
1,199,994
-
-
1,199,994
83,802,007
14,949,963
(6,101)
1,269,243,125
1,367,988,994
At 1 July 2001
Prior year adjustment (Note 28)
At 1 July 2001 (restated)
At 31 December 2002
83,802,007
14,949,963
(6,101)
1,263,332,539
1,362,078,408
-
-
-
5,910,586
5,910,586
At 1 January 2003 (restated)
83,802,007
14,949,963
(6,101)
1,269,243,125
1,367,988,994
Currency translation differences
-
-
801
-
801
(2,836,455)
-
-
-
(2,836,455)
-
-
-
59,875,419
59,875,419
Issuance of preference share (Note 22)
-
199,999
-
-
199,999
80,965,552
15,149,962
(5,300)
1,329,118,544
1,425,228,758
At 31 December 2003
116
Membership
Fees
RM
Accumulated
Funds
RM
Total
RM
96,960,000
844,088,982
941,048,982
-
4,048,198
4,048,198
96,960,000
848,137,180
945,097,180
(13,157,993)
-
(13,157,993)
-
31,729,287
31,729,287
83,802,007
879,866,467
963,668,474
83,802,007
875,322,915
959,124,922
-
4,543,552
4,543,552
At 1 January 2003 (restated)
83,802,007
879,866,467
963,668,474
(2,836,455)
-
(2,836,455)
-
58,153,126
58,153,126
At 31 December 2003
80,965,552
At 1 July 2001
As previously stated
At 1 January 2003
2 0 0 3
Company Statement of Changes in Equity
Consolidated Statement of Changes in Equity
R E P O R T
At 1 July 2001 (restated)
Net surplus for the period (restated)
At 31 December 2002
At 1 January 2003
938,019,593 1,018,985,145
117
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Group
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
Company
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of unquoted bonds, net
Group
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
Company
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
95,551,821
30,652,794
89,729,402
60,032,265
18,466,170
37,415,456
12,838,065
28,150,379
374,422
30,643
359,920
-
-
28,245,200
-
25,170,147
Amortisation of goodwill net of reserve on consolidation
2,921,187
2,549,213
1,843,332
1,843,332
Net (reversal)/provision for bad and doubtful debts
(198,577)
761,808
(333,452)
995,531
Bad debts written off
1,403,749
-
1,400,000
-
Net gain on sale of property, plant and equipment
(293,550)
(2,523,633)
(347,716)
(2,244,091)
Provision for diminution in value of investments
2,987,340
-
2,984,009
-
Recreational club membership benefits written off
75,100
225,158
-
-
Amortisation of premium less accretion of discount
507,897
637,076
821,992
905,894
4,825,730
14,214,877
2,770,433
9,490,761
Net gain on disposal of investments
(18,406,315)
(20,672,872)
(6,070,229)
(8,288,730)
Interest income
(51,922,479)
(59,091,872)
(29,375,887)
(40,870,364)
143,885
232,981
6,444
-
-
-
(70,000,000)
(67,105,556)
56,436,380
32,676,829
6,626,313
8,079,568
(17,019,315)
26,671,883
(4,504,526)
9,072,741
61,500,185
(8,547,682)
16,889,031
(17,517,978)
-
-
(6,267,421)
31,992,108
100,917,250
50,801,030
12,743,397
31,626,439
(4,533,441)
(3,611,806)
(3,862,490)
(2,820,825)
-
-
50,400,000
48,316,000
(143,885)
(232,981)
(6,444)
-
(64,095,870)
(17,476,923)
(57,986,923)
(30,281,467)
CASH FLOWS FROM OPERATING ACTIVITIES
Property, plant and equipment written off
Impairment losses on property, plant and equipment
Provision for retirement benefits
Interest expense
Gross dividend income
Operating surplus before working capital changes
(Increase)/decrease in receivables
Increase/(decrease) in payables
Changes in subsidiaries balances
Cash generated from operations
Retirement benefits paid
Dividend received
Interest paid
Taxes paid, net refund
Net cash generated from operating activities
(99,503,439)
(104,256,277)
(69,553,933)
Increase in investment in subsidiaries
-
-
(48,080,794)
(14,370,097)
Acquisition of business operations of MESDAQ**
-
(17,937,260)
-
(17,937,260)
(10,490,000)
(12,000,000)
(10,490,000)
(12,000,000)
-
(150,200)
-
-
3,084,358
(5,625,024)
2,545,474
(5,742,107)
-
-
-
(2,000,000)
Interest received
46,257,003
51,879,591
26,275,181
39,092,927
Purchase of property, plant and equipment
(7,971,291)
(10,683,957)
(7,767,059)
(8,125,069)
1,403,459
6,266,551
347,716
3,443,664
(34,024,626)
(87,753,738)
(141,425,759)
(87,191,875)
Payment of dividend to minority shareholders
(720,006)
(2,196,000)
-
-
Transfer from/(to) Compensation Funds
4,458,865
(3,499,143)
4,870,732
(4,820,732)
Decrease in long term borrowings/liability
(758,261)
(977,960)
-
(538,560)
199,999
1,199,994
-
-
(2,836,455)
(13,157,993)
(2,836,455)
(13,157,993)
344,142
(18,631,102)
2,034,277
(18,517,285)
(1,536,430)
(76,905,520)
(138,103,942)
(58,869,013)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR/PERIOD
809,945,566
886,851,086
360,981,912
419,850,925
CASH AND CASH EQUIVALENTS AT
END OF YEAR/PERIOD
808,409,136
809,945,566
222,877,970
360,981,912
16,087,789
11,853,665
12,323,063
117,237
792,321,347
798,091,901
210,554,907
360,864,675
808,409,136
809,945,566
222,877,970
360,981,912
Purchase of additional shares in subsidiaries from
minority shareholders
Purchase of club memberships
Adjustment for:
Depreciation
(66,308,155)
Repayment from/(disbursement for) staff loans, net
Purchase of loan stock from subsidiary
32,144,054
29,479,320
1,287,540
46,840,147
Proceeds from sale of property, plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Preference shares issued
Demutualisation cost
Net cash generated from/(used in) financing activities
NET DECREASE IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS COMPRISE:
Cash and bank balances
Short term deposits (Note 15)
**Net cash outflow from acquisition of business operations of MESDAQ
Sundry receivables
RM
558,853
135,997
Sundry payables
(19,624,226)
Net assets acquired
(18,929,376)
Goodwill on acquisition
36,866,636
Net cash outflow from acquisition of business operations
17,937,260
118
119
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Notes to the Financial Statements
31 December 2003
(b) Basis of Consolidation
31 December 2003
The consolidated financial statements include the financial statements of the Company and all its subsidiaries.
Subsidiaries are those companies in which the Group has a long term equity interest and where it has power to
exercise control over the financial and operating policies so as to obtain benefits therefrom.
Subsidiaries are consolidated using the acquisition method of accounting. Under the acquisition method of
accounting, the results of subsidiaries acquired or disposed of during the year are included in the consolidated income
1. CORPORATE INFORMATION
The principal activities of the Company were to provide, regulate and maintain facilities for conducting the business of a stock
exchange in Malaysia. Following the demutualisation exercise, subsequent to the end of the financial year on 5 January 2004,
the Company's stock exchange business was vested and transferred to Malaysia Securities Exchange Berhad, a wholly
owned subsidiary of the Company. Thereafter, the principal activity of the Company is that of an exchange holding company.
statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. The assets and
liabilities of a subsidiary are measured at their fair values at the date of acquisition and these values are reflected in
the consolidated balance sheet. The difference between the cost of an acquisition and the fair value of the Group's
share of the net assets of the acquired subsidiary at the date of acquisition is included in the consolidated balance
sheet as goodwill or negative goodwill arising on consolidation.
Intragroup transactions, balances and resulting unrealised gains are eliminated on consolidation and the consolidated
The principal activities of the subsidiaries are described in Note 9.
There have been no significant changes in the nature of the principal activities during the financial year.
financial statements reflect external transactions only. Unrealised losses are eliminated on consolidation unless costs
cannot be recovered.
The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and the Group's share
The Company was incorporated under the Companies Act, 1965 on 14 December 1976 as a company limited by guarantee
of its net assets together with any unamortised balance of goodwill and exchange differences which were not
and did not have a share capital. As disclosed in Note 33, the Company was converted to a public company limited by shares on
previously recognised in the consolidated income statement. Minority interest is measured at the minorities' share of the
5 January 2004.
post acquisition fair values of the identifiable assets and liabilities of the acquiree.
The registered office of the Company is located at 6th Floor, Exchange Square, Bukit Kewangan, 50200 Kuala Lumpur.
(c) Goodwill
The number of employees in the Group and in the Company at the end of the financial year were 1,089 (2002: 1,108) and
Goodwill represents the excess of the cost of acquisition over the Group's or the Company's interest in the fair value of
523 (2002: 501) respectively.
the identifiable assets and liabilities at the date of acquisition.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors
on 13 February 2004 .
Goodwill is stated at cost less accumulated amortisation and impairment losses. The policy for the recognition and
measurement of impairment losses is in accordance with Note 2(l). Goodwill is presented separately in the balance sheet
and is amortised on a straight-line basis over its estimated useful life of 20 years.
2. SIGNIFICANT ACCOUNTING POLICIES
(d) Investment in Subsidiaries
The Company's investment in subsidiaries are stated at cost less impairment losses. The policy for the recognition and
(a) Basis of Preparation
The financial statements of the Group and of the Company have been prepared under the historical cost convention
and comply with the provisions of the Companies Act, 1965 and applicable Approved Accounting Standards in Malaysia.
measurement of impairment losses is in accordance with Note 2(l).
On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is recognised
in the income statement.
During the financial year ended 31 December 2003, the Group and the Company adopted the following MASB
Standards for the first time:
(e) Property, Plant and Equipment and Depreciation
MASB 25: Income Taxes
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The policy for the
MASB 27: Borrowing Costs
recognition and measurement of impairment losses is in accordance with Note 2(l).
MASB 28: Discontinuing Operations
Long term leasehold land is depreciated over the period of the lease of 99 years. Depreciation of other property, plant
MASB 29: Employee Benefits
and equipment is provided for on a straight-line basis to write off the cost of each asset to its residual value over the
The effects of adopting MASB 25 are summarised in the Statements of Changes in Equity and further information is
estimated useful life at the following annual rates:
disclosed in Note 28 to the financial statements. The adoption of MASB 27, MASB 28 and MASB 29 have not given
Freehold and leasehold building and office lots
rise to any adjustments to the opening balances of accumulated funds of the prior period and current year or to
Renovations
changes in comparatives.
Office equipment, electrical installation, furniture and fittings
Computers and office automation
Motor vehicles
2%
20%
10% - 20%
20% - 33.33%
20%
The leasehold building and office lots have a term of 99 years.
Upon the disposal of an item of property, plant or equipment, the difference between the net disposal proceeds and the
net carrying amount is recognised in the income statement.
120
121
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
31 December 2003
A N N U A L
R E P O R T
2 0 0 3
31 December 2003
(f) Cash and Cash Equivalents
For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and at banks and short
(i)
Income Tax
Income tax on the surplus or deficit for the year comprises current and deferred tax. Current tax is the expected amount
term deposits.
of income taxes payable in respect of the taxable surplus for the year and is measured using the tax rates that have been
enacted at the balance sheet date.
(g) Provisions for Liabilities
Provisions for liabilities are recognised when the Group or the Company has a present obligation as a result of a past
Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the
event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
tax bases of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities
and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to
are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary
reflect the current best estimate. Where the effect of the time value of the money is material, the amount of the provision
differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available
is the present value of the expenditure expected to be required to settle the obligation.
against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred
tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial recognition of
(h) Employee Benefits
an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither
accounting surplus nor taxable surplus.
(i) Short term benefits
Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability
associated services are rendered by employees of the Group. Short term accumulating compensated absences such
is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is
as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future
recognised in the income statement, except when it arises from a transaction which is recognised directly in equity, in
compensated absences, and short term non-accumulating compensated absences such as sick leave are recognised
which case the deferred tax is also charged or credited directly in equity, or when it arises from a business combination
when the absences occur.
that is an acquisition, in which case the deferred tax is included in the resulting goodwill or negative goodwill.
Prior to the adoption of MASB 29: Employee Benefits on 1 January 2003, no liability was recognised for the
obligations in respect of short term employee benefits in the form of accumulating compensated absences. The
Prior to the adoption of MASB 25: Income Taxes on 1 January 2003, deferred tax was provided for using the liability
effects of the change in accounting policy is accounted for in the current financial year and not applied retrospectively
method in respect of significant timing differences and deferred tax assets were not recognised unless there was
as it is not material.
reasonable expectation of their realisation. This change in accounting policy has been accounted for retrospectively and
the effects of this change are disclosed in Note 28.
(ii) Defined contribution plans
As required by law, companies in Malaysia make contributions to the national pension scheme, the Employees
Provident Fund ("EPF"). Such contributions are recognised as an expense in the income statement as incurred.
(iii) Defined benefit plans
(j)
Foreign Currencies
Transactions in foreign currencies are initially recorded in Ringgit Malaysia at rates of exchange ruling at the date of
transaction.
At each balance sheet date, foreign currency monetary items are translated into Ringgit Malaysia at
exchange rates ruling at that date. Non-monetary items initially denominated in foreign currencies, which are carried at
The Group operates a funded, defined benefit Retirement Benefit Scheme ("the Scheme") for its eligible employees.
historical cost are translated using the historical rate as of the date of acquisition and non monetary items which are
The Group's obligations under the Scheme are determined based on actuarial valuation where the amount of benefit
carried at fair value are translated using the exchange rate that existed when the values were determined. All exchange
that employees have earned in return for their service in the current and prior years is estimated. That benefit is
rate differences are taken to the income statement.
discounted using the Projected Unit Credit Method in order to determine its present value. Actuarial gains or losses
are recognised as income or expense over ten years when the cumulative unrecognised actuarial gains or losses for
The USD denominated financial statements of a subsidiary is translated at year-end exchange rate with respect to the
the Scheme at the end of the previous financial year exceed 10% of the higher of the present value of the defined
assets and liabilities, and at the exchange rate at the dates of the transactions with respect to the income statement. All
benefit obligation and the fair value of plan assets. Past service cost is recognised immediately to the extent that the
resulting translation differences are included in the foreign exchange reserve.
benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the
amended benefits become vested.
Previously, actuarial gains and losses are recognised in full as income or expense in the financial year they arise. This
change in accounting policy is not applied retrospectively as the amounts relating to prior years are not reasonably
determinable.
The amount recognised in the balance sheet represents the present value of the defined benefit obligations adjusted
for unrecognised actuarial gains and losses and unrecognised past service cost, and reduced by the fair value of plan
assets. Any asset resulting from this calculation is limited to the net total of any unrecognised actuarial losses and past
Goodwill and fair value adjustment arising on the acquisition of the USD denominated subsidiary are treated as assets
and liabilities of the Group and translated at the exchange rate ruling at the date of the acquisition.
The exchange rate ruling for USD denominated balances at both balance sheet dates is RM3.80: USD1.00.
(k) Revenue Recognition
Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the
enterprise and the amount of the revenue can be measured reliably.
(i) Dividend income is recognised when the right to receive payment is established.
service cost, and the present value of any economic benefits in the form of refunds or reductions in future
contributions to the plan.
(ii) Grants received by Malaysian Derivatives Clearing House Berhad (“MDCH”), a subsidiary, from the Securities
Commission, are recognised as income over the periods necessary to match them with the related costs which they
Effective 1 September 2003, the Scheme was closed to new entrants. Members who opted to join a separate
are intended to compensate, on a systematic basis.
new defined contribution plan cease to accrue benefits under the Scheme in respect of Pensionable Service after
31 August 2003.
122
123
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
31 December 2003
A N N U A L
R E P O R T
2 0 0 3
31 December 2003
(iii) Interest income comprises interest income recognised on short term deposits and unquoted bonds. Interest income
of the Group also includes interest earned on MCD Compensation Fund’s deposits and investments. Interest is
recognised on a time proportion basis that reflects the effective yield on the asset.
(n) Subscriptions
The rates for monthly subscription fees are as follows:
2003
RM
2002
RM
1,000
1,000
Registered person (executive/directors)
(formerly known as dealing members)
300
300
Registered person (corporate/individual)
(formerly known as non-dealing members)
300
300
Registered person (non-executive directors)
(formerly known as non-dealing members)
100
100
50
50
(iv) Accretion of discounts and amortisation of premiums on investments are recognised on an effective yield basis.
(v) All other revenue is recognised on an accrual basis.
(l)
Impairment of Assets
At each balance sheet date, the Group reviews the carrying amounts of its assets to determine whether there is any
indication of impairment. If any such indication exists, impairment is measured by comparing the carrying values of the
assets with their recoverable amounts. Recoverable amount is the higher of net selling price and value in use, which is
measured by reference to discounted future cash flows.
Participating organisation (formerly known as voting members)
Trainee dealers’ representatives
An impairment loss is recognised as an expense in the income statement immediately. Reversal of impairment losses
recognised in prior years is recorded when the impairment losses recognised for the asset no longer exist or have
decreased. The reversal is recognised to the extent of the carrying amount of the asset that would have been determined
(net of amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in the income
3. REVENUE
Revenue of the Group consists of the following:
Group
1.1.2003
to
31.12.2003
RM
statement immediately.
(m) Financial Instruments
Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual
provisions of the instrument.
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual
arrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reported as
1.7.2001
to
31.12.2002
RM
Clearing fees
117,738,461
110,021,197
SCORE fees
9,694,293
8,658,962
Members’ subscription
3,664,363
4,012,722
expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity.
Listing fee
13,684,245
14,923,293
Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a
Equipment rental income
23,989,715
29,944,610
net basis or to realise the asset and settle the liability simultaneously.
Other income/fees derived from operations of the Group
54,260,089
78,238,142
223,031,166
245,798,926
(i) Receivables
Receivables are carried at anticipated realisable values. Bad debts are written off when identified. Provision for
Revenue of the Company consists of the following:
doubtful debts is made on trade debts which are six months or older, or on debts which recoverability is considered
Company
doubtful.
(ii) Payables
Payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services
received.
(iii) Investments
(i) Short term investments comprise unquoted securities which are managed by external fund managers for the
purpose of short term capital gains. These unquoted securites are stated at the lower of cost or market value or
indicative market value determined on an aggregate basis. Cost is determined on the weighted average basis.
Increases or decreases in the carrying amount of short term investments are recognised in the income statement.
On disposal of short term investments, the difference between net disposal proceeds and the carrying amount is
recognised in the income statement.
SCORE fees
9,694,293
8,658,962
Members’ subscriptions
1,147,650
2,087,100
Listing fee
13,607,370
14,923,293
Equipment rental income
18,645,795
25,861,770
120,000
60,000
70,000,000
67,105,556
8,003,897
8,877,244
- Royalty income*
51,675,806
48,684,954
- Cost recoveries
15,309,750
26,892,967
8,748,522
14,563,890
196,953,083
217,715,736
Significant income from subsidiaries:
- Commitment income
- Dividend income
- Office rental
Other income/fees derived from operations of the Company
(ii) Other investments comprise unquoted bonds that are acquired and held for yield or capital growth and are usually
held to maturity. Unquoted bonds are stated at cost adjusted for amortisation of premium or net of accretion of
discounts where applicable, to maturity dates. Provision is made for permanent diminution in value, where
* Royalty income represents royalty receivable from SCANS, a wholly owned subsidiary.
considered appropriate. On disposal of such investments, the differences between the net disposal proceeds and
their carrying amounts are recognised in the income statement.
(iii) Investments in loan stocks of a subsidiary are stated at cost less provision for any permanent diminution in value.
124
125
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
4. STAFF COSTS
5. SURPLUS FROM OPERATIONS (CONTD.)
Group
1.1.2003
to
31.12.2003
RM
Company
1.7.2001
to
31.12.2002
RM
1.1.2003
to
31.12.2003
RM
65,709,787
31,585,805
41,501,747
379,278
527,275
187,413
297,336
1,272,298
-
690,983
-
-
2,597,515
-
-
Pension costs - defined contribution plans
9,769,317
8,413,185
5,569,410
4,815,684
Pension costs - defined benefit plan (Note 23)
4,825,730
14,214,877
2,770,433
9,490,761
24,352,386
38,114,927
15,249,786
15,801,215
97,025,569
129,577,566
56,053,830
71,906,743
Social security costs
Short term accumulating compensated absences
Termination benefits
Group
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
1.7.2001
to
31.12.2002
RM
56,426,560
Other staff related expenses
2,921,187
2,549,213
1,843,332
1,843,332
Net (reversal)/provision for bad and doubtful debts
(198,577)
761,808
(333,452)
995,531
Bad debts written off
1,403,749
-
1,400,000
-
-
-
-
18,340
1,310,315
2,180,318
1,216,775
1,694,301
21,531,586
20,244,396
-
-
-
-
11,285,897
8,694,291
492,500
1,024,815
-
-
75,100
225,158
-
-
Gross dividend income from subsidiaries
-
-
(70,000,000)
(67,105,556)
Property management and other service charges
by a subsidiary
-
-
7,230,642
10,862,146
Office rental
- Subsidiary
- Others
Securities Commission levy
Facilities management charges by a subsidiary
Recreational club memberships benefit to directors**
5. SURPLUS FROM OPERATIONS
Surplus from operations is stated after charging/(crediting):
Group
1.1.2003
to
31.12.2003
RM
1.7.2001
to
31.12.2002
RM
Company
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
-
28,245,200
-
25,170,147
374,422
30,643
359,920
-
(293,550)
(2,523,633)
(347,716)
(2,244,091)
2,987,340
-
2,984,009
-
- Net gain on disposal of investments
(18,406,315)
(20,672,872)
(6,070,229)
(8,288,730)
- Interest income
(including MCD's Compensation Fund
income of RM2,022,197 (2002: RM3,322,729))
51,922,479)
(59,091,872)
(29,375,887)
(40,870,364)
507,897
637,076
821,992
905,894
356,000
458,333
-
-
2,305,765
2,478,760
-
-
380,162
337,800
-
-
1,813,942
836,307
-
-
183,400
193,400
45,000
50,000
- Net gain on sale of property, plant and equipment
* The estimated monetary value of other benefits not included in the above received by directors of the Group and Company were RM123,457
(2002: RM215,952) and RM14,048 (2002: RM20,250) respectively.
** This represents cost of recreational club memberships, purchased for the use of directors of a subsidiary, written off.
6. FINANCE COST
- Property, plant and equipment written off
Included in finance cost is:
Group
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
Investments
- Provision for diminution in value of investments
- Amortisation of premium less accretion of discount
(including MCD's Compensation Fund
amortisation of RM33,500 (2002: RM22,071))
Company
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
Amortisation of goodwill
Rental of equipment
- Impairment losses on property, plant and equipment
2 0 0 3
31 December 2003
31 December 2003
Wages and salaries
R E P O R T
Interest expense
143,885
232,981
Company
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
6,444
-
Remuneration of* :
Directors of the Company
- Fees
- Other emoluments
Other directors of subsidiaries
- Fees
- Other emoluments
Auditors’ remuneration:
- Statutory audit
126
127
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
7. TAXATION
8. PROPERTY, PLANT AND EQUIPMENT
Group
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
Company
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
27,681,807
27,513,000
28,167,622
30,932,778
Under/(over) provision of taxation in prior years
Computers
and office
automation
RM
Motor
vehicles
RM
Total
RM
381,710,429
74,111,142
306,700,410
3,488,622
766,010,603
Additions
1,700,398
2,657,540
3,613,353
-
7,971,291
Disposals
(1,187,341)
(4,090)
(3,581)
(1,245,537)
(2,440,549)
Written off
(47,411)
(91,325)
(42,545,496)
-
(42,684,232)
382,176,075
76,673,267
267,764,686
2,243,085
728,857,113
71,290,953
67,297,793
301,102,756
2,792,696
442,484,198
6,702,760
4,685,221
6,830,750
247,439
18,466,170
Disposals
(193,932)
(3,319)
(3,579)
(1,129,810)
(1,330,640)
Written off
(47,411)
(76,928)
(42,185,471)
-
(42,309,810)
77,752,370
71,902,767
265,744,456
1,910,325
417,309,918
At 31 December 2003
304,423,705
4,770,500
2,020,230
332,760
311,547,195
At 31 December 2002
310,419,476
6,813,349
5,597,654
695,926
323,526,405
11,810,648
13,980,100
9,983,997
1,640,711
37,415,456
366,639,582
67,789,812
236,301,092
1,775,196
672,505,682
Additions
1,680,132
2,637,922
3,449,005
-
7,767,059
Disposals
-
-
-
(730,759)
(730,759)
Written off
-
-
(7,628,265)
-
(7,628,265)
368,319,714
70,427,734
232,121,832
1,044,437
671,913,717
62,724,083
61,908,430
234,184,850
1,479,581
360,296,944
6,171,570
4,315,508
2,240,955
110,032
12,838,065
Disposals
-
-
-
(730,759)
(730,759)
Written off
-
-
(7,268,345)
-
(7,268,345)
68,895,653
66,223,938
229,157,460
858,854
365,135,905
At 31 December 2003
299,424,061
4,203,796
2,964,372
185,583
306,777,812
303,915,499
5,881,382
2,116,242
295,615
312,208,738
10,096,138
12,822,006
3,993,019
1,239,216
28,150,379
GROUP
At 1 January 2003
2,027,948
(652,259)
3,185,793
(495,354)
490,638
(14,945,139)
877,483
(2,134,446)
30,200,393
12,570,224
31,576,276
28,302,978
Income tax is calculated at the Malaysian statutory tax rate of 28% (2002: 28%) of the estimated assessable profit for
the year.
A reconciliation of income tax expense applicable to surplus before taxation at the statutory income tax rate to income tax
expense at the effective income tax rate of the Group and the Company is as follows:
At 31 December 2003
Accumulated Depreciation and Impairment Losses
At 1 January 2003
Group
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
Company
1.1.2003
1.7.2001
to
to
31.12.2003
31.12.2002
RM
RM
95,551,821
30,652,794
89,729,402
60,032,265
Taxation at Malaysian statutory tax rate of
28% (2002 : 28%)
26,754,510
8,582,782
25,124,233
16,809,034
Expenses not deductible for tax purposes
7,103,041
16,240,220
5,590,640
11,229,841
(3,534,946)
(1,951,557)
(16,080)
-
(8,000)
-
-
-
COMPANY
747,044
780,973
-
-
Cost
(1,366,709)
(394,269)
-
-
14,815
-
-
-
-
4,257,214
-
2,398,706
490,638
(14,945,139)
877,483
(2,134,603)
30,200,393
12,570,224
31,576,276
28,302,978
Income not subject to tax
Effect of lower tax rate at 20% on chargeable
income of up to RM100,000
Deferred tax assets not recognised during the year
Utilisation of previously unrecognised
unabsorbed capital allowances
Underprovision of deferred tax in respect of prior years
Overprovision of taxation for the period
Under/(over) provision of taxation in prior years
Tax expense for the year/period
Tax savings recognised during the year arising
from utilisation of current year losses
Unutilised tax losses carried forward
-
Utilisation of unabsorbed capital
allowances brought forward
Unabsorbed capital allowances carried forward
Depreciation charge for 2002
At 1 January 2003
At 31 December 2003
At 1 January 2003
-
19,735
-
-
25,968,767
26,434,767
-
-
Tax savings recognised during the year arising from:
Utilisation of current year unabsorbed
capital allowances
At 31 December 2003
Unabsorbed capital allowances are analysed as follows:
-
Depreciation charge for the year
Net Book Value
Tax losses are analysed as follows:
128
Land and
buildings
Note 8(a)
RM
Office
equipment,
electrical
installation,
furniture
and fittings
RM
Cost
Deferred taxation relating to:
- Origination and reversal of temporary
differences (Note 14)
2 0 0 3
31 December 2003
31 December 2003
Current year's provision
R E P O R T
At 31 December 2003
214,002
369,344
-
-
Net Book Value
1,366,709
394,269
-
-
At 31 December 2002
36,083,061
41,492,069
-
-
129
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
8. PROPERTY, PLANT AND EQUIPMENT (CONTD.)
8(a). LAND AND BUILDINGS
9. INVESTMENT IN SUBSIDIARIES
Leasehold land*
RM
Leasehold
building
and office lots
RM
Freehold
building
and office lots
RM
Renovation
RM
Total
RM
Cost
At 1 January 2003
60,817,500
287,147,823
29,313,194
4,431,912
381,710,429
Additions
-
-
-
1,700,398
1,700,398
Disposals
-
(1,187,341)
-
-
(1,187,341)
Written off
-
-
-
(47,411)
(47,411)
60,817,500
285,960,482
29,313,194
6,084,899
382,176,075
At 31 December 2003
8,716,325
51,989,209
6,648,240
3,937,179
71,290,953
810,153
4,909,718
385,915
596,974
6,702,760
Disposals
-
(193,932)
-
-
(193,932)
Written off
-
-
-
(47,411)
(47,411)
9,526,478
56,704,995
7,034,155
4,486,742
77,752,370
At 31 December 2003
51,291,022
229,255,487
22,279,039
1,598,157
304,423,705
At 31 December 2002
52,101,175
235,158,614
22,664,954
494,733
310,419,476
921,476
8,921,743
619,594
1,347,835
11,810,648
60,817,500
285,960,482
19,861,600
-
366,639,582
-
-
-
1,680,132
1,680,132
60,817,500
285,960,482
19,861,600
1,680,132
368,319,714
At 31 December 2003
Company
2003
RM
163,442,898
104,872,104
Impairment losses
(38,740,400)
(38,740,400)
124,702,498
66,131,704
Details of the subsidiaries are as follows:
Equity Interest Held (%)
2003
2002
Ordinary
Paid Up
Capital as at
31.12.2003
RM
COMPANY
Securities Clearing
Automated Network
Services Sdn. Bhd.
("SCANS")
100
100
300,000,000
KLSE Information Services
Sdn. Bhd. ("KLSE IS")
100
100
250,002
Malaysian Central
Depository Sdn. Bhd.
("MCD")
75
55
25,000,000
Malaysian Share
Registration Services
Sdn. Bhd.("MSRS")
100
51
2,000,000
Providing and/or
undertaking share
registration services.
KLSE Property Management
Sdn. Bhd. (“KPM”)
100
100
1,000,000
Providing building
management and
security services.
75
55
2
100
100
39,998,002
Cost
At 1 January 2003
Additions
At 31 December 2003
At 1 January 2003
8,716,325
51,822,982
2,184,776
-
62,724,083
810,153
4,882,013
280,899
198,505
6,171,570
9,526,478
56,704,995
2,465,675
198,505
68,895,653
At 31 December 2003
51,291,022
229,255,487
17,395,925
1,481,627
299,424,061
At 31 December 2002
52,101,175
234,137,500
17,676,824
-
303,915,499
921,476
8,578,814
595,848
-
10,096,138
At 31 December 2003
Net Book Value
Office lots represent offices and car park spaces in multistorey buildings.
Principal
Activities
Incorporated in Malaysia:
Net Book Value
2002
RM
Unquoted shares, at cost
Name of Subsidiaries
At 1 January 2003
2 0 0 3
31 December 2003
31 December 2003
GROUP
R E P O R T
Malaysian Central
Depository Nominees
Sdn. Bhd.
KLSE Technology Sdn. Bhd.
(“KLSE TECH”)
Providing clearing
facilities for contracts
between clearing
members.
Compiling, providing
and disseminating
real-time share price and
other relevant financial/
economic information
from the Company to
various subscribers.
Maintaining and
operating a central
depository in respect of
securities listed on the
stock exchange in
Malaysia.
Acting as nominees for
Malaysian Central
Depository Sdn. Bhd.
and to receive securities
and property on deposit
or for safe-custody or
management.
Provision of information
and communications
technology services.
*Long term leasehold land of the Group and Company costing RM53,317,500 is pledged as security for borrowings as referred to in Note 26.
130
131
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
2 0 0 3
31 December 2003
31 December 2003
9. INVESTMENT IN SUBSIDIARIES (CONTD.)
Name of Subsidiaries
R E P O R T
10.LOAN STOCKS FROM SUBSIDIARY
Equity Interest Held (%)
2003
2002
Ordinary
Paid Up
Capital as at
31.12.2003
RM
During the financial period ended 31 December 2002, the Company purchased 2,000,000 of 5 year 4% Redeemable
Convertible Unsecured Loan Stocks 2002/2007 (RCULS) at a nominal value of RM1 each from MSRS, a subsidiary. These
Principal
Activities
loan stocks were disposed subsequent to the end of the financial year as disclosed in Note 33(b).
Incorporated in Malaysia:
Malaysia Derivatives
Exchange Bhd.
(“MDEX”)
KLOFFE Information
Systems Sdn. Bhd.
(“KIS”)
Labuan International
Financial Exchange Inc. *
("LFX")
Commodity and Monetary
Exchange of Malaysia**
(“COMMEX”)
Malaysian Derivatives
Clearing House Berhad
("MDCH")**
Malaysia Monetary
Exchange Berhad**
100
100
100
^
100
100
^
50,000,000
2
USD5,500,000
^
To establish, maintain,
conduct, operate and
promote a market for the
trading of futures and
options contracts and
facilities for the
registration of dealings
and settlement of trades
in such contracts.
Dormant - intended
principal activities are to
provide information
technology and
management services.
To provide, regulate and
maintain facilities for
conducting the business
of an offshore stock
exchange in Labuan.
Group
2003
RM
2002
RM
Company
2003
RM
2002
RM
At cost:
Unquoted bonds
Amortisation of premiums less accretion of discounts
Recreational club memberships
Add: Acquired during the year/period
Less: Written off
Indicative market value of unquoted bonds
249,076,800
212,762,242
151,210,490
89,200,992
(99,641)
(206,961)
(336,382)
(26,371)
248,977,159
212,555,281
150,874,108
89,174,621
84,300
159,258
-
-
-
150,200
-
-
(75,100)
(225,158)
-
-
9,200
84,300
-
-
248,986,359
212,639,581
150,874,108
89,174,621
253,502,500
217,555,528
150,564,000
90,389,200
Dormant
100
100
100
100
100
20,000,000
1,000,000
Providing clearing,
settlement and
guaranteeing of futures
and options contracts
executed on derivatives
exchanges and the
administration and
enforcement of its
business rules.
Dormant
as follows:
Group
Maturity
100
2
Dormant
-
2
Took over the stock
exchange business of the
Company on 5 January
2004.
Company
Weighted
Average Yield
to Maturity
Weighted
Average Yield
to Maturity
RM
%
RM
%
14,976,350
3.7
14,975,500
3.7
171,975, 909
5.2
102,887,308
4.4
62,024,900
6.0
33,011,300
5.8
2003
< 1 year
1 – 5 years
> 5 years
* Incorporated in the Federal Territory of Labuan, Malaysia.
** Audited by another firm of auditors.
^ COMMEX is a company limited by guarantee with membership fees of RM7,060,000. MDEX and the Company are regarded as COMMEX’s immediate and
ultimate holding company respectively. MDEX is the sole member of COMMEX.
132
11.OTHER INVESTMENTS
Maturities and weighted average yield to maturity per annum of the unquoted bonds as at the balance sheet date were
KLSE Training Sdn. Bhd.
(Formerly known as I-MESDAQ Sdn. Bhd.) 100
Malaysia Securities Exchange
Berhad ("MSEB")
100
248,977,159
150,874,108
2002
< 1 year
1 – 5 years
> 5 years
5,038,584
4.8
5,038,584
4.8
82,977,738
6.0
67,977,738
5.8
124,538,959
6.6
16,158,299
6.2
212,555,281
89,174,621
133
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
31 December 2003
31 December 2003
14.DEFERRED TAXATION
12.STAFF LOANS RECEIVABLE
Group
Group
2003
RM
Housing loans
43,907,185
2002
RM
44,528,520
Company
2003
RM
42,311,464
2002
RM
43,025,206
Vehicle loans
980,874
1,436,749
739,426
1,200,542
Computer loans
742,870
942,278
551,285
627,798
Staff Advances
53,540
7,558
5,055
7,241
45,684,469
46,915,105
43,607,230
44,860,787
(4,220,656)
(2,366,934)
(3,373,209)
(2,081,292)
41,463,813
44,548,171
40,234,021
42,779,495
Portion repayable within twelve months included
in sundry receivables
At 1 January 2003/1 July 2001, previously stated
Within 1 year
-
5,377,646
4,543,552
4,048,198
5,343,646
4,543,552
4,048,198
(2,027,948)
652,259
(3,185,793)
495,354
Recognised in the income statement (Note 7)
At 31 December
3,967,957
5,995,905
1,357,759
4,543,552
The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows:
Deferred Tax Assets of the Group:
Depreciation
in excess of
capital
allowances
RM
Provision
for
retirement
benefits
RM
Provision
for
doubtful
debts
RM
Other
provisions
RM
Total
RM
(276,270)
(6,624,394)
(736,456)
(467,206)
(8,104,326)
33,821
74,853
93,366
184,672
386,712
(242,449)
(6,549,541)
(643,090)
(282,534)
(7,717,614)
Others
RM
Total
RM
At 31 December 2003
Deferred Tax Liabilities of the Group:
Accelerated
capital
allowances
RM
4,220,656
2,366,934
3,373,209
2,081,292
More than 1 year and less than 5 years
13,720,761
14,941,572
12,490,969
13,172,896
5 years or more
27,743,052
29,606,599
27,743,052
29,606,599
At 1 January 2003
926,885
1,174,206
7,330
2,108,421
45,684,469
46,915,105
43,607,230
44,860,787
2,822,772
(1,174,206)
(7,330)
1,641,236
At 31 December 2003
3,749,657
-
-
3,749,657
Provision
for
retirement
benefits
RM
Provision
for
doubtful
debts
RM
Other
provisions
RM
Total
RM
(4,495,029)
(736,456)
(236,921)
(5,468,406)
Group
2003
RM
2002
RM
Company
2003
RM
2002
RM
Goodwill
At 1 January 2003/1 July 2001
At 1 January 2003
57,249,501
17,346,021
36,866,636
-
2,055,677
3,036,844
-
-
At 31 December 2003
-
36,866,636
-
36,866,636
59,305,178
57,249,501
36,866,636
36,866,636
(5,291,920)
(1,995,794)
(1,843,332)
-
Amortisation for the year
(2,921,187)
(3,296,126)
(1,843,332)
(1,843,332)
Arising from acquiring additional shares in subsidiary
Arising from transfer of business operations
At 31 December
305,776
93,366
(35,280)
363,862
(4,189,253)
(643,090)
(272,201)
(5,104,544)
Accelerated
capital
allowances
RM
Total
RM
Deferred Tax Liabilities of the Company:
Accumulated amortisation and impairment losses
At 31 December
(8,213,107)
(5,291,920)
(3,686,664)
(1,843,332)
(9,958,835)
(9,958,835)
-
-
Reserve arising on consolidation
At beginning/end of year/period
At 1 January 2003
924,854
924,854
2,821,931
2,821,931
At 31 December 2003
3,746,785
3,746,785
Deferred tax asset has not been recognised in respect of the following items:
Group
Accumulated amortisation and impairment losses
Amortisation for the year
At 31 December
Net goodwill
Receivables
RM
Deferred Tax Assets of the Company:
13. NET GOODWILL
9,958,835
9,211,922
-
-
-
746,913
-
-
9,958,835
9,958,835
-
-
51,092,071
51,957,581
33,179,972
35,023,304
Goodwill is stated at cost less accumulated amortisation and impairment losses. Goodwill net of reserve arising on
consolidation is amortised on a straight-line basis over its estimated useful life of 20 years.
134
-
6,101,405
The maturity structure of the staff loans receivable as at the end of the financial year/period were as follows:
2002
RM
(34,000)
5,995,905
Company
2003
RM
(105,500)
Company
2003
2002
RM
RM
At 1 January 2003
2002
RM
2002
RM
At 1 January 2003/1 July 2001, restated
The staff housing and vehicle loans are secured against the properties and vehicles of the borrowers respectively. The staff
loans bear interest of 2% to 4% per annum computed on monthly rest basis.
Group
2003
RM
2003
RM
Retirement benefit obligations
Provision for bonus
2003
RM
2002
RM
378,158
215,127
-
26,347
Provision for unutilised leave
90,864
-
Unutilised capital allowances
10,103,257
11,617,779
7,271,255
7,401,735
Unutilised tax losses
The unutilised tax losses are available indefinitely for offset against future taxable profits of the respective subsidiaries
subject to agreement with Inland Revenue Board. Deferred tax asset has not been recognised thereof, as it is not probable
that future taxable income will be available against which they may be utilised.
135
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
15. SHORT TERM DEPOSITS
16. RECEIVABLES
R E P O R T
2 0 0 3
31 December 2003
31 December 2003
Group
2003
RM
Company
2003
RM
2002
RM
Group
2002
RM
Deposits with:
Licensed banks
351,380,475
401,732,706
40,428,490
200,686,831
Licensed finance companies
284,996,776
254,073,255
90,129,732
90,930,000
Licensed discount houses
76,673,599
33,520,567
70,252,817
6,470,344
Licensed merchant banks
73,351,629
102,743,784
4,500,000
62,500,000
786,402,479
792,070,312
205,311,039
360,587,175
5,918,868
6,021,589
5,243,868
277,500
792,321,347
798,091,901
210,554,907
360,864,675
Repurchase agreement with a discount house
Included in short term deposits are:
Group
2003
RM
Deposits pledged with licensed banks for
banking facilities granted
51,200,000
Company
2003
RM
2002
RM
51,200,000
1,200,000
2002
RM
Company
2003
2002
RM
RM
2003
RM
2002
RM
Trade receivables
32,427,685
16,452,538
12,190,143
7,755,037
Interest receivables
11,935,313
6,945,540
5,270,969
2,186,889
Other sundry receivables
16,750,265
16,600,083
6,017,208
5,240,555
61,113,263
39,998,161
23,478,320
15,182,481
(3,550,991)
(3,915,508)
(2,296,747)
(2,630,199)
57,562,272
36,082, 653
21,181,573
12,552,282
3,915,508
4,841,835
2,630,199
1,635,568
Net (writeback)/provision for doubtful debts
(198,577)
761,808
(333,452)
995,531
Amount written off
(165,940)
(1,688,135)
-
(900)
At 31 December
3,550,991
3,915,508
2,296,747
2,630,199
Provision for doubtful debts
The movement of provision for
doubtful debts is as follows:
1,200,000
The Group’s and the Company’s normal trade credit term ranges from 7 to 30 days.
Short term deposits of the Company and of the Group amounting to RM22,897,908 (2002: RM4,416,677) are managed
The Group and the Company have no significant concentration of credit risk that may arise from exposures to a single
by external fund managers.
debtor or to groups of debtors.
The weighted average interest rates per annum during the financial year and the average maturities of deposits as at
balance sheet date were as follows:
17. SHORT TERM INVESTMENTS
Group
Weighted
Average
Interest Rates
%
Average
Maturities
Days
Company
Weighted
Average
Average
Interest Rates
Maturities
%
Days
2003
Group
Malaysian Government Securities (“MGS”)
at cost/valuation
Licensed banks
2.8
189
3.4
224
Unquoted bonds, at cost
2.1
117
3.0
77
Less: Provision for diminution in value
1.9
13
2.8
12
0.9
76
2.8
32
Quoted shares, at cost
Less: Provision for diminution in value
2002
Licensed banks
3.1
157
3.0
156
3.3
175
3.2
184
2.8
54
2.8
92
2.9
102
2.9
95
Total
Company
2003
2002
RM
RM
2003
RM
2002
RM
-
4,306,640
-
4,306,640
209,652,113
157,540,447
209,652,113
157,540,447
(2,984,009)
-
(2,984,009)
-
206,668,104
157,540,447
206,668,104
157,540,447
9,466
-
-
-
(3,331)
-
-
-
6,135
-
-
-
206,674,239
161,847,087
206,668,104
161,847,087
Group and Company
2003
2002
RM
RM
Market value of MGS
Indicative market value of unquoted bonds
Market value of quoted shares
-
4,040,900
206,668,104
162,917,512
6,135
-
Short term investments of the Company and of the Group are managed by external fund managers.
136
137
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
17. SHORT TERM INVESTMENTS (CONTD.)
21.MEMBERSHIP FEES
R E P O R T
2 0 0 3
31 December 2003
31 December 2003
Maturities and weighted average yield to maturity per annum of the short term investments as at the balance sheet date were
as follows:
Group and Company
Weighted
Weighted
Average Yield
Average Yield
2003
to Maturity
2002
to Maturity
RM
%
RM
%
(i) Membership fees received from past and present members at RM10,000 each amounted to RM2,960,000 (2002:
RM2,960,000); and
(ii) a total contribution of RM94,000,000 (2002: RM94,000,000) was received from Members as follows:
Maturity
Contribution
per member
RM’000
1 January
2003
Addition
31 December
2003
5,000
5
-
5
MGS
Number of members
< 1 year
-
-
2,012,040
2.9
1,000
51
-
51
1 – 5 years
-
-
2,294,600
3.0
3,000
6
-
6
62
Unquoted bonds
< 1 year
1 – 5 years
> 5 years
3,070,100
3.4
10,211,000
4.8
118,787,957
5.1
98,536,566
5.4
84,810,047
6.4
48,792,881
6.2
206,668,104
As a result of the consolidation of the stockbroking industry, the number of Members in operation as at the end of the financial
year was 38 (2002: 40)
161,847,087
Contribution
per member
RM’000
1 January
2003
5,000
25,000
-
25,000
1,000
51,000
-
51,000
3,000
18,000
-
18,000
18. DUE FROM SUBSIDIARIES
The amounts due from subsidiaries are unsecured, interest free and have no fixed terms of repayment.
19.DUE TO SUBSIDIARIES
62
Total contribution (RM’000)
31 December
Addition
2003
94,000
94,000
During the year, a sum of RM2,836,455 (2002: RM13,157,993) has been charged against the Membership fees for advisory
fees paid for the demutualisation of the Company. The advisory fees incurred are not in the normal course of operations of the
Company.
The amounts due to subsidiaries are unsecured, interest free and have no fixed terms of repayment.
22. CAPITAL RESERVE
Group
20.TRADE PAYABLES
Included in trade payables of the Group is RM150,990,812 (2002: RM111,399,495) relating to amounts due to futures
and options brokers. The amount arises principally from accruals made for margin payable by MDCH.
Group’s portion of accumulated funds capitalised from
redemption of preference shares (Note a)
Share premium from MDEX (Note b)
2003
RM
2002
RM
2,750,000
2,750,000
12,399,962
12,199,963
15,149,962
14,949,963
(a) This relates to the Group’s portion of accumulated funds capitalised arising from the redemption of 5,000,000 5%
redeemable cumulative preference shares of RM1 each by a subsidiary, MCD.
(b) In the financial year ended 30 June 2001, MDEX issued 16 non-cumulative “B” preference shares and 15 non
cumulative “C” preference shares of RM1 each at a total premium of RM10,999,969 as part consideration for the
merger of business operations of COMMEX and MDEX. The share premium arising from the above issue is regarded
as capital reserve of the Group and is not distributable. The “B” and “C” preference shares have been accounted for
as part of the Group’s minority interest.
In the previous financial period ended 31 December 2002, MDEX increased its issued and fully paid-up share capital
by way of the issuance of 6 non-cumulative “C” preference shares of RM1 each at a total premium of RM1,199,994.
During the current financial year, MDEX further increased its issued and fully paid-up share capital by way of the
issuance of 1 non-cumulative “C” preference shares of RM1 each at a premium of RM199,999.
138
139
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
23.RETIREMENT BENEFIT OBLIGATIONS
23.RETIREMENT BENEFIT OBLIGATIONS (CONTD.)
R E P O R T
2 0 0 3
31 December 2003
31 December 2003
The Group operates a funded, defined benefit retirement Benefit Scheme (“the Scheme”) for its eligible employees.
Movements in the net liability in the current year were as follows:
Group
2003
RM
Contributions to the Scheme are to be made to a separately administered fund. Under the Scheme, eligible employees
are entitled to benefits upon leaving service, of a lump sum, calculated based on the multiplication of 2 times the Final
Scheme Salary, Pensionable Service and a variable factor based on service year, less EPF offset.
Effective 1 September 2003, the Scheme was closed to new entrants. Members who opted to join a separate new defined
Amount recognised in the income statement (Note 4)
contribution plan cease to accrue benefits under the Scheme in respect of Pensionable Service after 31 August 2003.
The amounts identified as at 31 December 2003 are determined as follows:
2002
RM
Company
2003
RM
2002
RM
24,644,877
14,041,806
16,053,676
9,383,740
4,825,731
14,214,877
2,770,433
9,490,761
Contributions paid
(4,533,441)
(3,611,806)
(3,862,490)
(2,820,825)
At 31 December
24,937,167
24,644,877
14,961,619
16,053,676
2003
%
2002
%
Group
RM
Company
RM
41,780,100
25,528,700
(11,040,942)
(6,746,314)
Discount rate
7.0
7.0
Unrecognised actuarial losses
(5,801,991)
(3,820,767)
Expected return on plan assets
7.0
7.0
Net liability
24,937,167
14,961,619
Expected rate of salary increase
5.0
5.0
20,000
5,600
Present value of funded defined benefit obligations
Fair value of plan assets
Principal actuarial assumptions used:
Present value of funded defined benefit obligations analysed as:
Current
24.DEFERRED INCOME
Non-current:
Later than 1 year but not later than 2 years
Later than 2 years but not later than 5 years
Later than 5 years
684,200
684,200
3,482,300
3,293,400
37,593,600
21,545,500
41,760,100
25,523,100
41,780,100
25,528,700
Deferred income of the Group relates to grants received by a subsidiary, MDCH, from the Securities Commission and is
recognised as income over the period necessary to match them with the related costs which they are intended to
compensate on a systematic basis.
25. LONG TERM BORROWINGS
Group
The amounts recognised in the income statement during the year are as follows:
2003
RM
2002
RM
Group
RM
Company
RM
Long term borrowings
1,318,200
1,537,900
Current services cost
3,469,931
1,935,791
Less: Portion repayable within twelve months included as short term borrowings
(219,700)
(219,700)
Interest cost
2,545,254
1,659,448
1,098,500
1,318,200
(1,025,340)
(658,211)
Over provision of cost in previous year
(164,115)
(166,595)
free unsecured loans of RM697,000 and RM1,500,000. Each loan is repayable in ten equal annual instalments,
Total, included in staff costs (Note 4)
4,825,730
2,770,433
repayments of which commenced on 30 November 2000.
Expected return on plan assets
Long term borrowings of the Group relate to amounts payable to the Government of Malaysia and comprise two interest-
The actual loss on the plan assets of the Group and of the Company were RM2,698,877 and RM2,170,306 respectively.
26. LONG TERM LIABILITY
Group and Company
2003
2002
RM
RM
Long term liability
Less: Portion repayable within twelve months included in sundry payables
48,335,815
48,874,376
(538,561)
(538,561)
47,797,254
48,335,815
Long term liability relates to the amount payable to the Government of Malaysia for the purchase of leasehold land. The
amount is interest free, payable in 99 annual instalments of RM538,561 each and secured on the leasehold land.
140
141
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
27.MCD COMPENSATION FUND
28.PRIOR YEAR ADJUSTMENT (CONTD.)
R E P O R T
2 0 0 3
31 December 2003
31 December 2003
In 1997, pursuant to the provisions of Section 5(1)(b)(vii) of the Securities Industry (Central Depositories) Act, 1991, MCD,
Comparative amounts as at 31 December 2002 have been restated as follows:
a subsidiary, established a scheme of compensation for the purpose of settling claims by depositors against MCD, its
authorised depository agents and Malaysian Central Depository Nominees Sdn Bhd. The scheme comprises the
Compensation Fund and insurance policies. MCD’s policy is to maintain the balance in the Compensation Fund at
RM50,000,000. In consideration for the above, all revenue accruing to the Compensation Fund deposits and investments
Group
are to be credited to MCD and all expenditure incurred for and on behalf of the Compensation Fund will be absorbed by
Deferred tax liabilities/(assets)
MCD.
Minority interests
The MCD Compensation Fund is segregated from the financial statements of the Group and accounted for separately.
Company
Previously
Stated
RM
Adjustment
RM
Restated
RM
(34,000)
6,029,905
5,995,905
(18,096,523)
(190,819)
(18,287,342)
-
4,543,552
4,543, 552
Deferred tax assets
28.PRIOR YEAR ADJUSTMENT
29. CAPITAL COMMITMENTS
During the financial year, the Group and the Company adopted four new MASB Standards, which became effective from
Group
1 January 2003, and accordingly modified certain accounting policies. The adoption of MASB 25: Income Taxes resulted
in a prior year adjustment.
Under MASB 25, deferred tax liabilities are recognised for all taxable temporary differences. Previously, deferred tax
2002
RM
2002
RM
97,735
15,935
97,735
15,935
2,538,894
570,901
2,538,894
563,811
12,000
-
12,000
-
2,648,629
586,836
2,648,629
579,746
-
321,442
-
321,442
5,670,000
61,143,099
5,000,000
61,143,099
-
3,546,643
-
3,546,643
5,670,000
65,011,184
5,000,000
65,011,184
Approved and contracted for:
liabilities were provided for on account of timing differences only to the extent that a tax liability was expected to materialise
- Office equipment, furniture and fittings
in the foreseeable future. In addition, the Group and the Company have commenced recognition of deferred tax assets for
- Computer and office automation
all deductible temporary differences, when it is probable that sufficient taxable surplus will be available against which the
- Renovation
deductible temporary differences can be utilised. Previously, deferred tax assets were not recognised unless there was
reasonable expectation of their realisation.
Company
2003
RM
2003
RM
Approved but not contracted for:
This change in accounting policy has been applied retrospectively and comparatives have been restated. The effects of
this change in accounting policy are as follows:
- Office equipment, furniture and fittings
- Computer and office automation
Group
2003
RM
2002
RM
Company
2003
RM
2002
RM
- Motor vehicles
Effects on accumulated funds:
At beginning of year/period, previously stated
1,263,332,539
1,250,312,419
875,322,915
844,088,982
Effects of adopting MASB 25: Deferred tax
6,101,405
5,377,646
4,543,552
4,048,198
Minority interests
(190,819)
-
-
-
1,269,243,125
1,255,690,065
879,866,467
848,137,180
At beginning of year/period, (restated)
30. CONTINGENT LIABILITIES - UNSECURED
(a) A claim for an approximate sum of RM 12,000,000 being lease line charges omitted from billing since 1994 was made
against the Company by a local telecommunications company. Both parties are having discussion and currently in the
process of verifying the said amount claimed in order to ascertain the Company's actual liability to the
Effects on net surplus for the year/period:
telecommunications company. No provision in respect of the claim has been made in the financial statements as
Net surplus before changes in accounting policy
61,903,367
12,900,801
61,338,919
31,233,933
Effects of adopting MASB 25: Deferred tax
(2,027,948)
652,259
(3,185,793)
495,354
Net surplus for the year/period
59,875,419
13,553,060
58,153,126
31,729,287
negotiations are in process and an amicable settlement has yet to be reached between the parties and corresponding
billings by the Company to participating organisations in respects of the same are still pending.
(b) A demand for RM7,206,000 has been made by a local bank againsst MSRS, a subsidiary, for allegedly breaching
terms of a Letter of Undertaking issued by MSRS to the said bank. The directors of the subsidiary have sought legal
advice on the matter. Based on the legal advice received by MSRS, no provision has been made in the financial
statements as it is not probable that there will be an outflow of resources.
Following the sale of MSRS by the Company to Symphony House Berhad on 5 January 2004, the Company has given
an undertaking to assume all losses or damages suffered by MSRS, if any, resulting from the said claim.
142
143
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
31 December 2003
31 December 2003
31. SIGNIFICANT RELATED PARTY TRANSACTIONS (CONTD.)
31. SIGNIFICANT RELATED PARTY TRANSACTIONS
Company
The directors are of the opinion that with the exception of dividends, the above transactions have been established on
1.1.2003
to
31.12.2003
RM
1.7.2001
to
31.12.2002
RM
51,675,806
48,684,954
- SCANS
3,291,275
5,419,667
- MCD
5,734,763
14,882,945
- KLSE IS
460,953
1,510,707
- MSRS
522,142
2,889,739
- MDEX
2,646,466
1,174,295
- LFX
300,559
198,535
- MDCH
745,882
8,194
1,253,566
695,344
223,491
108,170
15,179,097
26,887,596
- SCANS
1,380,850
1,432,804
divided into 15,000,000 ordinary shares of RM1 each and 10,000,000 redeemable preference shares of RM 1 each
- MCD
1,607,495
4,005,202
has been reclassified into 20,000,000 ordinary shares of RM1 each and 5,000,000 redeemable preference shares of
- KLSE IS
108,740
54,000
RM1 each. On 31 December 2003, MDCH increased its issued and paid-up share capital from RM8,000,000 to
- MSRS
359,154
373,512
RM20,000,000 through the issuance of 12,000,000 ordinary shares of RM1 each. The shares were fully subscribed
- MDEX
716,008
977,310
- LFX
155,446
95,108
62,349
-
3,143,563
1,613,832
224,299
325,476
7,757,904
8,877,244
60,000,000
60,000,000
through the issuance of 24,999,998 ordinary shares of RM1 each at par and 25,000,000 Redeemable Convertible
- MCD
3,000,000
2,200,000
Preference Shares of RM0.01 each at a premium of RM0.99 each, for a total cash consideration of RM49,999,998.
- KLSE IS
5,000,000
4,305,556
- KPM
2,000,000
600,000
70,000,000
67,105,556
Property management and other service charges by a
subsidiary, KPM.
(7,230,642)
(10,862,146)
Facilities management division charges by a subsidiary,
KLSE TECH.
(11,285,897)
(8,694,291)
Royalty income from a subsidiary, SCANS
Cost recoveries from subsidiaries
terms and conditions that are not materially different from those obtainable in transactions with unrelated parties.
32. SIGNIFICANT EVENTS
During the financial year,
(a) The Company acquired additional 5,000,000 ordinary shares, representing additional 20% equity interest in MCD, for
a cash consideration of RM10,000,000, thus increasing the Company's equity interest in MCD to 75%.
(b) The Company acquired additional 980,000 ordinary shares, representing additonal 49% equity interest in MSRS, a
- KLSE TECH
- KPM
Office rental income from subsidiaries
- MDCH
- KLSE TECH
- KPM
144
(c) A wholly owned subsidiary, LFX, increased its issued and paid-up share capital from USD3,000,000 to USD5,500,000
through the issuance of 2,500,000 ordinary shares of USD1 each for a cash consideration of USD2,500,000. The
shares were fully subscribed by the Company.
(d) A wholly owned subsidiary, MDEX, increased its issued and paid-up share capital from RM11,426,708 to
RM50,000,000 through the issuance of 38,573,292 ordinary shares of RM1 each for a cash consideration of
RM38,573,292. The shares were fully subscribed by the Company.
(e) During the year, authorised share capital of a wholly owned subsidiary of SCANS, MDCH, amounting to RM25,000,000
Dividend income from subsidiaries
- SCANS
subsidiary for a cash consideration of RM490,000, thus increasing the Company's equity interest in MSRS to 100%.
by SCANS.
(f) On 20 November 2003, members of the Company passed special resolutions at an Extraordinary General Meeting
approving the conversion of the Company from a company limited by guarantee to a company limited by shares, and
the adoption of amended Memorandum and Article of Association.
(g) A new company, Malaysia Securities Exchange Berhad ("MSEB") was incorporated with RM50,500,000 authorised
share capital divided into 50,000,000 ordinary shares of RM 1 each and 50,000,000 Redeemable Convertible
Preference Shares of RM0.01 each, and issued and paid-up share capital of RM 2 comprising 2 ordinary shares of
RM1 each. As at 5 January 2004, MSEB increased its issued and paid-up share capital from RM 2 to RM25,250,000,
145
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
33. SUBSEQUENT EVENTS
36. FINANCIAL INSTRUMENTS (CONTD.)
31 December 2003
(a) On 2 January 2004, the Demutualisation (Kuala Lumpur Stock Exchange) Act 2003 came into force. On 5 January
2004, the Company was converted into a public company limited by shares. With this conversion, on the same date,
the Company vested and transferred its stock exchange business to MSEB and thereafter became an exchange
holding company.
(b) On 5 January 2004, the Company disposed 2,000,000 ordinary shares of RM 1 each representing the Company’s
100% equity interest in MSRS, and the Company's investment in MSRS's 2,000,000 redeemable convertible
R E P O R T
2 0 0 3
31 December 2003
(c) Liquidity Risk
The Group actively manages its operating cash flows and the availability of funding so as to ensure that all funding
needs are met. As part of its overall liquidity management, the Group maintans sufficient levels of cash or cash
convertible investments to meet its working capital requirements. In addition, the Group strives to maintain available
banking facilities of a reasonable level to meet its operational needs.
(d) Credit Risk
unsecured loan stocks of RM1 each to Symphony House Berhad for a total cash consideration of RM6,000,000.
Credit risks, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits and
(c) On 1 January 2004, KLSE Training Sdn. Bhd (formerly known as I-Mesdaq Sdn. Bhd.), a wholly owned subsidiary,
monitoring procedures. The Group has in place procedures to deal in default situations. Trade receivables are
acquired the business, assets and liabilities of Research Institute of Investment Analysts Malaysia, a company limited
monitored on an ongoing basis via Group management reporting procedures. The Group does not have any significant
by guarantee, for a cash consideration of RM1.
exposure to any individual customer or conterparty nor does it have any major concentration of credit risk related to
any financial instrument.
(d) On 2 January 2004, KLSE Training Sdn. Bhd. (formerly know as I-Mesdaq Sdn Bhd.) increased its issued and paid
up share capital from RM2 to RM1,000,000 through the Issuance of 999,998 new ordinary shares of RM1 each for a
cash consideration of RM1,000,000. The shares were fully subscribed by the Company.
(e) Fair Values
The aggregate net fair values of financial assets and financial liabilities which are not carried at fair value on the balance
sheets of the Group and of the Company are represented as follows:
Group
34. KLSE COMPENSATION FUND
The financial statements of the KLSE Compensation Fund for the year ended 31 December 2003 are as attached and
have been accounted for separately from all other properties of the Exchange as required by Section 61 of the Securites
Industy Act, 1983 (Amended 1997).
Note
Carrying
Amount
RM
10
Company
Fair Value
RM
Carrying
Amount
RM
Fair Value
RM
-
-
2,000,000
^
At 31 December 2003
Financial Assets
Loan Stocks from subsidiary
35. COMPARATIVES
Other investments
Comparative amounts for the income statements, statements of changes in equity, cash flow statements and the related
- unquoted bonds
11
248,977,159
253,502,500
150,874,108
150,564,000
notes are for the 18 months period from 1 July 2001 to 31 December 2002.
12
45,684,469
44,355,411
43,607,230
42,289,115
4,006,829
^
3,001,000
^
18
-
-
14,635,635
^
19
-
-
3,467,106
^
36. FINANCIAL INSTRUMENTS
(a) Financial Risk Management Objectives and Policies
Financial Liabilities
Due to subsidiaries
The Group's financial risk management policy seeks to ensure that adequate financial resources are available for the
development of the Group's businesses whilst managing its interest rate, liquidity and credit risks. The Group operates
within clearly defined guidelines that are approved by the board of directors and the Group's policy is to not engage
in speculative transactions.
(b) Interest Rate Risk
The Group has no interest-bearing debt. However, the Group has substantial short and long term interest-bearing
financial assets as at 31 December 2003. The investments in financial assets are not held for speculative purposes but
have been mostly placed in fixed deposits or invested in commercial papers. The information on maturity dates and
effective interest rates of financial assets are disclosed in their respective notes.
146
147
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
31 December 2003
KLSE Committees
36. FINANCIAL INSTRUMENTS (CONTD.)
(e) Fair Values (contd.)
Note
Group
Carrying
Amount
Fair Value
RM
RM
Company
Carrying
Amount
Fair Value
RM
RM
At 31 December 2002
AUDIT COMMITTEE
Financial Assets
Objectives
Loan stocks from subsidiary
10
-
-
2,000,000
^
-unquoted bonds
11
212,555,281
217,555,528
89,174,621
90,389,200
12
46,915,105
45,787,787
44,860,787
43,930,615
Short term investments
17
161,847,087
166,958,412
161,847,087
166,958,412
5,414,694
^
4,820,732
^
18
-
-
8,440,259
^
19
-
-
3,539,151
^
Other investments
Financial Liabilities
Due to subsidiaries
• Assist the KLSE Board in discharging its responsibilities relating to accounting practices of
KLSE and its Group of Companies.
• Ensure the adequacy, efficiency and effectiveness of the Group’s administrative, operating
and accounting controls and procedures.
• Oversee and evaluate the quality of the audits conducted both by the Group’s internal and
external auditors.
BUDGET AND INVESTMENT COMMITTEE
Objectives
• Ensure that the KLSE and its Group of Companies have a proper budgetary system in
place that will help to plan, co-ordinate, evaluate and control financial activities effectively.
• Ensure that proper allocations are made to enable effective and efficient:- operations of the KLSE and its Group of Companies;
^
It is not practical to estimate the fair values of amounts due to/from subsidiaries and Compensation Funds due principally to a lack
of fixed repayment term entered into by the parties involved. However, the Group does not anticipate the carrying amounts recorded
at the balance sheet date to be significantly different from the values that would eventually be received or settled.
Note
Group
Nominal
Amount
Fair Value
RM
RM
Company
Nominal
Amount
Fair Value
RM
RM
At 31 December 2003
Contingent liabilities
30
19,206,000
*
12,000,000
*
- implementation of the development plans of the KLSE and its Group of Companies; and
- utilisation of financial resources.
• Review and monitor the financial position of the KLSE and its Group of Companies.
Members
1. Dato’ Mohammed Azlan Hashim
(Chairman)
2. Yusli Mohamed Yusoff
3. Abdul Rauf Ramli
4. YM Raja Ahmad Raja Jallaludin
5. Harry K. Menon
6. Jimmy Lee Soon Teck
7. Peter Leong Tuck Leng
8. Radzman Hafiza Abu Zarim
• Ensure that the cash of the KLSE and its Group of Companies is preserved and secured.
• Ensure that the funds are properly invested and maintained with the view to maximise
return/yields on investment.
• Appoint appropriate advisors in managing its surplus funds.
• Formulate policies and guidelines for the investment of the KLSE and its Group of
Companies’ surplus funds.
• Review the investment policy of the KLSE and its Group of Companies to ensure that
optimal yield is achieved with minimum risk exposure to the funds.
At 31 December 2002
Contingent liabilities
Members
1. Tan Kim Leong, JP (Chairman)
2. Datuk Dr. Abdul Samad Hj Alias
3. Datuk Mohaiyani Shamsudin
4. Datuk Mohamed Adnan Ali
5. Philip T.N.Koh
30
25,541,000
*
18,335,000
*
INDEX COMMITTEE
*
It is not practical to estimate the fair value of contingent liabilities reliably due to the uncertainties of timing, costs and eventual
outcome.
Objectives
The following methods and assumptions are used to estimate the fair values of the following classes of financial
• Responsible for the construction and establishment of new indices as directed by the
KLSE Board or whenever necessary.
instruments:
• Assist in other related securities areas, if possible, as determined by the KLSE Board.
(i) Cash and Cash Equivalents, Trade and Other Receivables/Payables and Short Term Borrowings
The carrying amounts approximate fair values due to the relatively short term maturity of these financial instruments.
(ii) Other Investments and Short Term Investments
The fair value of MGS are estimated based on quoted market prices. The fair value of unquoted bonds is determined
Members
(Chairman)
3. Dato’ Azim Mohd Zabidi
4. Dr. Aziz Abu Hassan
5. Dr. Kok Kim Lian
6. Dr. Zaha Rina Zahari
7. Jamiah Abdul Hamid
8. Yoon Mun Thim
9. YM Tunku Afwida Tunku Abdul Malek
10. Fathi Ridzuan Ahmad Fauzi
by reference to a reasonable estimate of fair value that has been calculated based on the indicative rates obtained from
third parties at the close of the business on the balance sheet date.
(iii) Staff Loans Receivable
The fair value of staff loans receivable is estimated by discounting the expected future cash flows using the current
interest rates for loans with similar risk profiles.
37.CURRENCY
All amounts are stated in Ringgit Malaysia.
148
DEVELOPMENT COMMITTEE
Objectives
• Review changes, revisions or additions to the KLSE Rules and Regulations to determine
if they are consistent with the mission and objectives of the KLSE.
• Review the role and direction of the KLSE and its Group of Companies in line with its
mission and vision.
Members
(Chairman)
3. Dato’ Ahmad Johan Raslan
4. Ching Yew Chye
5. Dato’ Seri Hwang Sing Lue
7. Dato’ Seri Hj Megat Najmuddin
Datuk Seri Dr. Hj. Megat Khas
8. T. Jeyaratnam
9. Yang Shu Yin
10. Dato’ Azmi Abdullah
149
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
KLSE
MSEB Committees
DISCIPLINARY COMMITTEE
Objectives
• Consider matters relating to disputes among Participating Organisations.
• Consider disciplinary actions against Participants, Participating Organisations and
Dealers’ Representatives of MSEB.
Members
1. Abdul Kadir Hj Md Kassim
(Chairman)
3. Tan Kim Leong, JP
4. Datin Mariam Prudence Yusof
LISTING COMMITTEE
(Formerly known as Listing Sub-Committee of KLSE)
Objectives
• Assist the MSEB Board in discharging all matters relating to listing and post-listing
functions of the MSEB in a speedy and efficient manner.
Members
1. Dato' Mohammed Azlan
Hashim (Chairman)
3. Dato' Abdul Hamidy Hafiz
Datuk Seri Dr. Hj Megat Khas
6. Abdul Kadir Hj Md Kassim
7. Azzat Kamaludin
8. Iskander Ismail
10. Md Nor Ahmad
EMAS
High
Low
Close
High
Low
Close
Jan-03
675.87
625.13
664.77
165.62
153.21
161.83
Feb-03
668.18
646.80
646.80
162.43
156.98
156.98
Mar-03
649.22
619.22
635.72
157.38
150.35
153.98
Apr-03
640.35
624.18
630.37
155.46
151.84
153.54
May-03
672.05
627.26
671.46
163.84
152.96
163.84
Jun-03
691.96
671.84
691.96
170.23
163.83
170.23
Jul-03
730.40
693.58
720.56
182.03
170.71
178.91
Aug-03
746.49
718.91
743.30
185.80
178.29
184.95
Sep-03
756.48
733.45
733.45
186.22
180.41
182.03
Oct-03
817.12
737.43
817.12
202.43
183.03
202.43
Nov-03
815.99
765.95
779.28
202.75
189.76
193.67
Dec-03
797.80
766.59
793.94
197.86
189.25
195.57
Industrial
Consumer Products
High
Low
Close
High
Low
Close
PARTICIPATION COMMITTEE
Jan-03
1,408.34
1,329.13
1,400.07
169.81
164.92
167.08
(Formerly known as Membership Sub-Committee of KLSE)
Feb-03
1,411.03
1,369.23
1,369.23
168.17
165.04
165.28
Mar-03
1,388.78
1,337.99
1,388.78
168.49
162.60
168.49
Apr-03
1,392.28
1,358.07
1,390.70
168.70
166.21
168.70
May-03
1,450.54
1,390.07
1,450.54
179.96
168.65
179.96
Jun-03
1,478.73
1,440.54
1,478.73
183.29
179.16
182.22
Jul-03
1,542.65
1,474.95
1,525.01
193.75
182.99
192.49
Aug-03
1,637.88
1,532.66
1,637.88
200.64
193.95
198.24
Sep-03
1,683.96
1,610.47
1,612.26
198.50
193.64
194.15
Oct-03
1,788.85
1,623.11
1,788.85
209.67
194.36
209.67
Nov-03
1,809.53
1,721.62
1,742.86
213.38
206.90
212.87
Dec-03
1,780.64
1,734.39
1,772.39
216.29
210.55
216.29
Objectives
• To consider and recommend to the MSEB Board applications for Participation of
the MSEB pursuant to the MSEB’s Articles of Association and Rules, after having
duly interviewed the individual applicant, proposed Dealing Members and NonDealing Members, as the case may be.
Members
1. Datin Mariam Prudence Yusof
(Chairperson)
Datuk Seri Dr. Hj Megat Khas
5. Datuk Teh Ghee Kok
6. Izlan Izhab
7. Zaiton Md Hassan
2 0 0 3
Monthly High, Low and Close Indices*
Composite
(Formerly known as Disciplinary Sub-Committee of KLSE)
R E P O R T
*Based on closing index
150
151
K U A L A
L U M P U R
S T O C K
KLSE
E X C H A N G E
B E R H A D
A N N U A L
Construction
Second Board
High
Low
Close
High
Low
Close
Jan-03
67.98
62.53
67.18
167.41
148.03
162.39
Feb-03
67.64
64.64
64.64
164.03
154.75
Mar-03
64.88
62.61
64.57
155.55
Apr-03
64.54
63.13
64.26
May-03
67.74
64.12
Jun-03
70.38
Jul-03
Technology
High
Low
Close
High
Low
Close
Jan-03
105.96
97.02
100.31
46.11
42.39
42.80
154.96
Feb-03
99.46
95.10
95.19
42.39
37.65
37.65
145.97
147.43
Mar-03
95.00
90.55
93.00
38.29
34.21
36.29
148.26
141.56
143.45
Apr-03
96.25
91.99
92.44
39.91
36.48
38.58
67.74
158.29
142.17
156.99
May-03
97.87
90.53
97.87
45.18
38.19
45.18
67.70
70.38
170.10
157.21
170.10
Jun-03
108.96
97.57
108.96
48.94
45.11
48.84
77.02
70.72
75.35
186.57
172.31
184.40
Jul-03
130.33
113.10
118.87
56.10
48.60
52.53
Aug-03
78.74
74.71
78.20
190.81
181.31
189.67
Aug-03
125.92
115.44
121.69
54.18
52.11
53.66
Sep-03
79.23
76.22
76.22
193.32
181.96
190.90
Sep-03
126.13
110.72
122.03
56.45
52.22
54.33
Oct-03
83.98
76.62
83.98
212.93
192.63
212.39
Oct-03
144.68
125.30
144.65
61.83
55.23
61.37
Nov-03
84.63
78.83
79.74
213.42
193.66
195.82
Nov-03
154.73
137.73
144.71
64.56
58.55
59.46
Dec-03
82.07
78.53
81.39
200.58
180.15
187.97
Dec-03
151.29
133.57
140.64
61.96
57.92
60.30
High
Low
Close
Trading/Services
Finance
MESDAQ Market
High
Low
Close
High
Low
Close
Jan-03
103.14
94.17
101.44
5,188.23
4,783.85
5,037.96
Jan-03
94.66
80.83
84.84
Feb-03
101.76
97.93
97.93
5,059.68
4,919.66
4,922.97
Feb-03
85.71
79.65
80.57
Mar-03
98.17
93.27
95.20
4,931.00
4,744.24
4,884.81
Mar-03
79.56
73.57
75.12
Apr-03
96.25
93.24
95.03
4,948.50
4,742.92
4,807.59
Apr-03
77.29
74.07
75.12
May-03
99.83
94.10
99.72
5,277.95
4,787.62
5,277.95
May-03
86.57
72.89
84.35
Jun-03
103.21
99.98
102.74
5,507.98
5,250.76
5,507.98
Jun-03
102.67
82.18
102.67
Jul-03
108.30
102.98
105.90
5,998.95
5,519.20
5,912.88
Jul-03
122.90
103.49
118.85
Aug-03
109.77
105.54
109.08
6,231.80
5,873.70
6,200.83
Aug-03
161.63
119.39
161.22
Sep-03
110.63
106.58
106.58
6,247.82
6,039.36
6,088.59
Sep-03
156.80
135.04
143.58
Oct-03
120.19
107.53
120.19
6,718.45
6,074.52
6,718.45
Oct-03
157.41
143.90
157.41
Nov-03
119.97
112.27
114.28
6,727.08
6,206.04
6,389.22
Nov-03
165.08
148.16
156.72
Dec-03
116.93
111.66
115.34
6,525.66
6,262.76
6,472.17
Dec-03
161.95
143.66
152.25
2 0 0 3
Monthly High, Low and Close Indices*
Industrial Products
152
R E P O R T
153
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Market Indicators
R E P O R T
2 0 0 3
KLSE INDUSTRIAL INDEX, VOLUME & VALUE
MONTHLY CLOSING
30
2000
1800
25
1600
KLSE COMPOSITE INDEX
1400
MONTHLY CLOSING & 200 DAYS MOVING AVERAGE
1200
1200
15
1000
Index
Volume & Value
(Billion)
20
800
10
600
Opening Closing
Index
Index
1000
400
5
200
800
0
2000
2001
2002
2003
0
J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
600
JULY 1999 - Dec 2003
Volume
400
Opening Closing
Index
Index
200
2000
2001
2002
2003
0
JULY 1999 - Dec 2003
Composite Index
Composite Index Moving Average
FYE 2000
Highest
Lowest
Composite Index
Composite Moving Average
982.24
846.69
675.45
611.03
FYE 2001
Highest
Lowest
798.83
868.82
572.88
675.64
FYE 2002
Highest
Lowest
793.99
729.66
600.07
622.46
833.89
666.63
682.83
632.43
679.64
696.09
646.32
793.94
Industrial Index
Volume (mil)
Value (RM mil)
Value
1432.77
1204.76
1313.63
1332.44
1217.28
1348.22
1349.37
1772.39
Index
FYE 2000
Highest
Lowest
FYE 2001
Highest
Lowest
FYE 2002
Highest
Lowest
FYE 2003
Highest
Lowest
1,683.24
10,623
25,760
1,429.92
1,693
6,179
1,504.50
3,980
10,278
1,788.85
6,152
14,715
1,207.07
1,299
5,005
1,119.59
669
2,023
1,196.78
878
2,689
1,369.23
1,153
2,969
FYE 2003
Highest
Lowest
817.12
717.13
630.37
649.86
KLSE CONSUMER PRODUCTS INDEX, VOLUME & VALUE
MONTHLY CLOSING
2.5
450
KLSE EMAS INDEX
400
MONTHLY CLOSING & 200 DAYS MOVING AVERAGE
2.0
350
300
300
1.5
250
Index
Volume & Value
(Billion)
400
350
200
1.0
150
250
Opening Closing
Index
Index
100
0.5
200
50
150
0.0
0
100
JULY 1999 - Dec 2003
Opening Closing
Index
Index
50
2000
2001
2002
2003
0
JULY 1999 - Dec 2003
EMAS Index
EMAS Index Moving Average
FYE 2000
Highest
Lowest
EMAS Index
EMAS Moving Average
154
255.63
217.49
174.81
155.44
FYE 2001
Highest
Lowest
200.40
221.67
139.29
160.99
FYE 2002
Highest
Lowest
192.90
176.56
144.57
148.90
214.24
155.61
163.23
154.43
159.77
165.23
157.25
195.57
Volume
Value
FYE 2000
Highest
Lowest
Consumer Products Index
Volume (mil)
Value (RM mil)
191.02
778
2,013
138,34
82
459
2000
2001
2002
2003
168.44
142.69
163.68
165.25
146.58
167.14
167.94
216.29
Index
FYE 2001
Highest
Lowest
168.06
71
487
142.48
34
239
FYE 2002
Highest
Lowest
186.76
254
1,105
149.07
54
314
FYE 2003
Highest
Lowest
216.29
428
1,380
165.28
51
333
FYE 2003
Highest
Lowest
202.43
176.82
153.54
158.38
155
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Market Indicators
R E P O R T
2 0 0 3
KLSE MINING INDEX, VOLUME & VALUE
MONTHLY CLOSING
300
400
350
250
300
KLSE INDUSTRIAL PRODUCTS INDEX, VOLUME & VALUE
MONTHLY CLOSING
9
120
250
150
200
150
100
8
100
100
7
Opening Closing
Index
Index
50
50
6
80
0
5
60
4
JULY 1999 - Dec 2003
Volume
3
2000
2001
2002
2003
0
Index
Volume & Value
(Billion)
Index
Volume & Value
(Billion)
200
Value
241.81
186.84
206.39
196.06
193.38
204.09
193.75
338.70
Index
40
2
1
0
2000
2001
2002
2003
0
JULY 1999 - Dec 2003
Volume
Value
FYE 2000
Highest
Lowest
Industrial Products Index
Volume (mil)
Value (RM mil)
113.43
2,341
8,190
Index
FYE 2001
Highest
Lowest
76.96
202
587
84.55
299
821
59.23
112
159
FYE 2002
Highest
Lowest
74.54
693
1,081
FYE 2000
Highest
Lowest
Opening Closing
Index
Index
20
91.05
63.81
66.49
63.38
65.35
67.60
65.64
81.39
Mining Index
Volume (mil)
Value (RM mil)
329.01
128
239
FYE 2001
Highest
Lowest
198.74
9
18
265.36
21
42
174.18
4
4
FYE 2002
Highest
Lowest
315.71
63
188
188.02
4
7
FYE 2003
Highest
Lowest
344.07
38
75
191.32
1
4
FYE 2003
Highest
Lowest
58.39
147
343
83.98
1,730
2,297
64.26
164
423
KLSE TRADING/SERVICES INDEX, VOLUME & VALUE
MONTHLY CLOSING
16
KLSE CONSTRUCTION INDEX, VOLUME & VALUE
14
MONTHLY CLOSING
12
200
180
160
140
500
4
400
10
120
8
100
Index
5
Volume & Value
(Billion)
600
80
6
60
4
3
300
2
Index
Volume & Value
(Billion)
6
20
0
200
0
1
0
JULY 1999 - Dec 2003
Volume
Value
FYE 2000
Highest
Lowest
Construction Index
Volume (mil)
Value (RM mil)
156
Opening Closing
Index
Index
100
0
312.79
1,890
4,806
202.52
191
611
Index
FYE 2001
Highest
Lowest
224.46
382
1,085
132.72
91
172
FYE 2002
Highest
Lowest
215.54
844
1,697
150.84
155
300
Opening Closing
Index
Index
40
2
2000
2001
2002
2003
250.79
150.75
174.44
149.55
156.26
177.35
150.84
187.97
FYE 2003
Highest
Lowest
212.39
1,055
2,637
JULY 1999 - Dec 2003
Volume
Value
FYE 2000
Highest
Lowest
Trading/Services Index
Volume (mil)
Value (RM mil)
154.97
5.620
13,729
106.53
802
2.956
Index
FYE 2001
Highest
Lowest
124.04
941
4,061
83.20
401
1,412
FYE 2002
Highest
Lowest
118.60
2,390
6,406
88.88
473
1,639
2000
2001
2002
2003
131.45
100.77
101.51
95.41
103.32
103.77
97.47
115.34
FYE 2003
Highest
Lowest
120.19
3,160
8,501
95.03
614
1,791
143.45
279
391
157
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Market Indicators
R E P O R T
2 0 0 3
KLSE PLANTATION INDEX, VOLUME & VALUE
MONTHLY CLOSING
1.6
2500
1.4
2000
1.2
MONTHLY CLOSING
9
12000
1.0
1500
Index
Volume & Value
(Billion)
KLSE FINANCE INDEX, VOLUME & VALUE
0.8
1000
0.6
8
0.4
10000
0.2
6
8000
5
600
Index
Volume & Value
(Billion)
Opening Closing
Index
Index
500
7
0
2000
2001
2002
2003
0
JULY 1999 - Dec 2003
4
3
Volume
4000
2
Opening Closing
Index
Index
2000
1
0
2000
2001
2002
2003
0
JULY 1999 - Dec 2003
Volume
Finance Index
Volume (mil)
Value (RM mil)
Value
Index
6728.01
4957.61
5111.26
4816.29
5070.62
5095.67
4857.54
6472.17
FYE 2000
Highest
Lowest
FYE 2001
Highest
Lowest
FYE 2002
Highest
Lowest
FYE 2003
Highest
Lowest
8,344.93
2,307
7,765
6,431.32
556
2,301
6,273.34
1,297
3,549
6,718.45
1,829
4,898
5,209.09
366
1,648
4,171.21
205
849
4,398.66
355
899
Plantation Index
Volume (mil)
Value (RM mil)
Value
1696.31
1324.28
1600.02
1812.68
1361.59
1615.35
1852.70
2209.75
Index
FYE 2000
Highest
Lowest
FYE 2001
Highest
Lowest
FYE 2002
Highest
Lowest
FYE 2003
Highest
Lowest
1,951.09
390
1,373
1,806.89
97
247
2,005.18
268
818
2,222.09
384
1,076
1,475.63
55
151
1,298.47
28
64
1,427.73
52
195
1,729.51
66
253
4,807.59
286
787
KLSE SECOND BOARD INDEX, VOLUME & VALUE
MONTHLY CLOSING
12
350
KLSE PROPERTY INDEX, VOLUME & VALUE
MONTHLY CLOSING
300
10
250
7
2500
5
200
6
150
4
2000
100
4
1500
2
Index
Volume & Value
(Billion)
8
Opening Closing
Index
Index
50
3
0
0
1000
2
JULY 1999 - Dec 2003
500
1
0
0
JULY 1999 - Dec 2003
Volume
Value
FYE 2000
Highest
Lowest
Property Index
Volume (mil)
Value (RM mil)
158
Index
6
Volume & Value
(Billion)
3000
1,274.90
3,530
6,236
950.21
224
335
Index
FYE 2001
Highest
Lowest
951.93
207
286
552.67
94
68
FYE 2002
Highest
Lowest
728.60
1,340
1,320
534.41
227
115
Opening Closing
Index
Index
2000 1079.37
2001 606.97
2002 600.83
2003 536.06
632.54
599.64
540.91
750.70
FYE 2003
Highest
Lowest
777.15
2,837
2,836
Volume
Value
FYE 2000
Highest
Lowest
Second Board Index
Volume (mil)
Value (RM mil)
298.50
2,417
9,822
153.60
88
240
Index
FYE 2001
Highest
Lowest
213.06
468
1,368
104.21
101
128
FYE 2002
Highest
Lowest
140.55
5,797
9,304
98.24
295
316
2000
2001
2002
2003
194.05
127.89
135.12
97.18
132.98
134.13
98.24
140.64
FYE 2003
Highest
Lowest
144.71
3,594
6,622
92.44
369
435
510.68
307
253
159
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
Market Indicators
KLSE TECHNOLOGY INDEX*, VOLUME & VALUE
KLSE MESDAQ MARKET INDEX*, VOLUME & VALUE
MONTHLY CLOSING
MONTHLY CLOSING
1800
160
1600
140
2500
200
180
1400
120
2000
160
1200
140
80
800
60
1500
120
100
1000
Index
Volume & Value
(Billion)
1000
Index
Volume & Value
(Billion)
100
80
600
60
40
400
500
20
200
0
Opening Closing
Index
Index
0
M J
J
A S O N D
J
F M A M J
J
A S O N D
J
F M A M J
A S O N D
J
F M A M J
J
A S O N D
2000
2001
2002
2003
May 2000 - Dec 2003
*Officially launched on 15.5.2000
Volume
Value
FYE 2000
Highest
Lowest
Technology Index
Volume (mil)
Value (RM mil)
J
166.05
10
207
Index
FYE 2001
Highest
Lowest
129.35
4
76
137.54
30
227
38.46
2
17
FYE 2002
Highest
Lowest
70.75
120
546
109.85
50.59
55.35
43.22
53.63
54.84
45.04
60.30
40
20
0
0
FYE 2003
Highest
Lowest
39.65
23
105
61.37
1,699
1,257
36.29
55
133
Opening Closing
Index
Index
JULY 1999 - Dec 2003
*Merge with KLSE on 18.3.2000
Volume
Value
FYE 2000
Highest
Lowest
MESDAQ Market
Volume (mil)
Value (RM mil)
106.25
0.8
2
53.44
0.01
0.01
Index
2002
2003
FYE 2001
Highest
Lowest
95.00
2
3
66.84
0.003
0.004
FYE 2002
Highest
Lowest
174.75
93
50
73.64
0.01
0.01
117.59
81.12
83.25
152.25
FYE 2003
Highest
Lowest
161.22
2,428
1,486
75.12
46
19
KLSE SYARIAH INDEX, VOLUME & VALUE
MONTHLY CLOSING
20
180
18
160
16
140
120
12
100
10
Index
Volume & Value
(Billion)
14
80
8
60
6
4
40
2
20
0
0
JULY 1999 - Dec 2003
Volume
Value
FYE 2000
Highest
Lowest
Syariah Index
Volume (mil)
Value (RM mil)
160
160.50
2,129
6,043
106.26
123
443
Index
FYE 2001
Highest
Lowest
137.54
436
1,633
88.96
32
114
FYE 2002
Highest
Lowest
119.56
3,605
8,798
94.17
601
2,200
Opening Closing
Index
Index
2000
2001
2002
2003
131.50
101.98
105.87
97.39
104.64
107.65
99.73
122.86
FYE 2003
Highest
Lowest
126.58
6,099
12,955
96.81
1,133
2,707
161
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
R E P O R T
2 0 0 3
From
Improvements
to
Growth
Enhanced Infrastructure
• Electronic Trading
• T+3 Settlement
• DVP Environment
• Immobilised Securities
• LINK - Online Corporate Disclosure
162
163
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
No
New Companies Listed
Company
R E P O R T
2 0 0 3
Board
Listing date
in 2003
Sector
Paid-up capital
when listed (RM)
14
Scomi Group Berhad
Second Board
13 May
Industrial Products
50,000,000
15
KL Infrastructure
Group Bhd
Main Board
28 May
Infrastructure
Project Companies
260,000,000
16
Orisoft Technology
Berhad
MESDAQ
Market
10 June
Technology
5,000,000
on KLSE and MESDAQ Market in 2003
No
Company
Board
Listing date
in 2003
Sector
Paid-up capital
when listed (RM)
1
CIMB Berhad
Main Board
8 January
Finance
850,000,000
17
Parade Season Berhad
Second Board
18 June
Industrial Products
42,000,000
2
Karensoft
Technology Berhad
MESDAQ
Market
24 January
Technology
6,800,000
18
Cybertowers Berhad
MESDAQ
Market
10 July
Technology
10,000,000
3
AKN Messaging
Technologies Berhad
MESDAQ
Market
27 January
Technology
9,000,000
19
Astino Berhad
Second Board
18 July
Industrial Products
58,000,000
4
Portrade
dotcom Berhad
MESDAQ
Market
28 January
Technology
9,330,000
20
BLD Plantation Bhd
Main Board
21 July
Plantation
85,000,000
5
Ornapaper Berhad
Main Board
29 January
Industrial Products
62,000,000
Pentamaster
Corporation Berhad
Second Board
23 July
Technology
40,000,000
22
Infortech Alliance
Berhad
MESDAQ
Market
28 July
Technology
6,000,000
23
LNG Resources Berhad
MESDAQ
Market
29 July
Industrial Products
9,000,002
24
IFCA MSC Berhad
MESDAQ
Market
30 July
Technology
27,620,000
25
Caely Holdings Bhd
Second Board
31 July
Consumer Products
40,000,000
26
APP Industries Berhad
Second Board
6 August
Consumer Products
40,000,000
27
Englotechs Holding Bhd
Second Board
7 August
Industrial Products
53,000,000
28
Protasco Berhad
Main Board
8 August
Construction
150,000,000
29
KNM Group Berhad
Second Board
11 August
Industrial Products
44,000,000
21
PENTAMASTER
164
6
Baswell
Resources Berhad
Second Board
30 January
Consumer Products
48,000,000
7
SKP Resources Berhad
Second Board
10 February
Industrial Products
48,000,000
8
Symphony
House Berhad
MESDAQ
Market
14 February
Trading/Services
28,000,000
9
UBS Corporation
Berhad
MESDAQ
Market
26 March
Technology
10,000,000
10
GHL Systems Berhad
MESDAQ
Market
9 April
Technology
25,015,178
11
Global Soft (MSC) Bhd
MESDAQ
Market
15 April
Technology
4,280,000
12
CYL Corporation Bhd
Second Board
21 April
Industrial Products
50,000,000
13
NTPM Holdings Berhad
Main Board
25 April
Consumer Products
62,400,000
165
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
New Companies Listed
No
on KLSE and MESDAQ Market in 2003
No
Company
Board
Listing date
in 2003
Sector
Paid-up capital
when listed (RM)
Company
R E P O R T
2 0 0 3
Board
Listing date
in 2003
Sector
Paid-up capital
when listed (RM)
43
PMB Technology Berhad
Second Board
5 November
Industrial Products
40,000,000
44
Digistar Corporation
Berhad
MESDAQ
Market
7 November
Technology
8,343,532.5
45
Toyo Ink Group Berhad
Second Board
10 November
Industrial Products
40,000,000
eBworx Malaysia
Berhad
MESDAQ
Market
17 November
Technology
20,685,000
47
Plenitude Berhad
Main Board
18 November
Properties
135,000,000
48
Scope Industries Berhad
MESDAQ
Market
19 November
Industrial Products
25,000,000
49
Malaysian Bulk
Carriers Berhad
Main Board
2 December
Trading/Services
230,000,000
50
JSPC i-Solutions Berhad
MESDAQ
Market
3 December
Trading/Services
18,300,000
46
eBworx
w r
30
Coastal Contracts Berhad
Main Board
13 August
Industrial Products
66,800,000
31
Pembinaan Jayabumi
(Sarawak) Berhad
Second Board
14 August
Industrial Products
50,000,000
32
NOVA MSC Berhad
MESDAQ
Market
19 August
Technology
25,590,000
33
Hiap Teck Venture Berhad
Main Board
2 September
Industrial Products
163,700,000
34
Luster Industries Bhd
Main Board
11 September
Industrial Products
60,000,000
35
Naim Cendera
Holdings Berhad
Main Board
12 September
Properties
250,000,000
51
Sunway
Infrastructure Berhad
Main Board
17 December
Infrastructure
Project Companies
90,000,002
36
DXN Holdings Bhd
Main Board
30 September
Consumer Products
60,000,000
52
KBES Berhad
Main Board
23 December
Trading/Services
63,000,000
37
Furniweb Industrial
Products Berhad
Second Board
16 October
Industrial Products
40,000,000
53
Poly Tower Ventures Berhad
Second Board
17 December
Industrial Products
40,000,000
38
Dominant
Enterprise Berhad
Second Board
20 October
Industrial Products
43,000,000
54
TPC Plus Berhad
Second Board
18 December
Consumer Products
40,000,000
39
Century Bond Bhd
Second Board
23 October
Industrial Products
40,000,000
FTEC Resources Berhad
MESDAQ
Market
19 December
Technology
16,999,900
40
LFE Corporation Berhad
Second Board
27 October
Trading/Services
52,000,002
MOL AccessPortal
Berhad
MESDAQ
Market
22 December
Technology
4,800,000
41
Astro All Asia Networks plc
Main Board
29 October
Trading/Services
£191,875,846.10
57
CAB Cakaran
Corporation Berhad
Second Board
22 December
Consumer Products
40,000,000
42
Johore Tin Berhad
Second Board
31 October
Industrial Products
43,986,000
58
Opcom Holdings Berhad
MESDAQ
Market
23 December
Industrial Products
17,200,000
DXN
166
55
TM
the future of technology
56
TM
167
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Membership Report
(6)
During the year under review (1 January 2003 to 31 December 2003):(1)
168
Date of Cessation
1
2
Straits Securities Sdn Bhd
Borneo Securities Sdn Bhd
27.01.2003
17.11.2003
(2)
Three Corporations were admitted as Non-Dealing Members of the Exchange (Corporate Shareholders),
via the following Member Companies, viz:
No. New Non-Dealing Member
(Corporate Shareholder)
Name of Member
1
2
3
BNP Paribas
Segmen Cahaya Sdn Bhd
Enrogetz Sdn Bhd
Mohaiyani Securities Sdn Bhd
Thong & Kay Hian Securities Sdn Bhd
Mercury Securities Sdn Bhd
(3)
Three Corporations resigned as Non-Dealing Members of the Exchange (Corporate Shareholders), via
the following Member Companies, viz:
No. Non-Dealing Member
(Corporate Shareholder)
Name of Member
1
2
3
Straits Assets Holdings Sdn Bhd
Paribas
Borneo Securities Holdings Sdn Bhd
Mohaiyani Securities Sdn Bhd
(4)
Four individuals were admitted as Dealing Members, viz:
No Name
Member Company
1
2
3
4
Tan Giap How
Zulazman bin Zulkifli
Sim Cheng Khuan
Chin Wooi Meng
Kuala Lumpur City Securities Sdn Bhd
Malacca Securities Sdn Bhd
PM Securities Sdn Bhd
(5)
Eleven individuals resigned / ceased as Dealing Members, viz:
No Name
Member Company
1
2
3
4
5
6
7
8
9
10
11
TA Securities Berhad
UT Securities Sdn Bhd
RHB Securities Sdn Bhd
Botly Securities Sdn Bhd
InnoSabah Securities Berhad
Avenue Securities Sdn Bhd
Goh Choon Hock
Ahmad Ezzanee Azizan bin Mohd Ali Azizan
Ignatius Luke Jr. Tan Keng Hee
Datin Tan Kuay Fong
Lee Seong Chong @ Lee Seong Cheong
Tan Sri Abdul Rashid Hussain
Haji Mat Zuki bin Mahmud
Ee Beng Wat
Awang bin Ahmad @ Awang Ariffin
Tan Mee Mee
Yeo Khee Nam
Date of Admission
08.04.2003
11.11.2003
09.12.2003
Date of Resignation
27.01.2003
08.04.2003
17.11.2003
Date of Admission
21.04.2003
11.09.2003
10.11.2003
12.11.2003
Date of
Resignation/Cessation
27.01.2003
27.01.2003
01.02.2003
01.02.2003
10.02.2003
23.02.2003
18.05.2003
23.06.2003
14.09.2003
17.11.2003
31.12.2003
2 0 0 3
Twenty individuals were admitted as Non-Dealing Members of the Exchange (Non-Executive Directors), viz:
No Name
Member Company
1
2
3
4
5
Date of Admission
HLG Securities Sdn Bhd
Hwang-DBS Securities Berhad
08.01.2003
09.01.2003
01.02.2003
07.02.2003
28.02.2003
PB Securities Sdn Bhd
Affin-UOB Securities Sdn Bhd
UT Securities Sdn Bhd
BIMB Securities Sdn Bhd
BIMB Securities Sdn Bhd
K&N Kenanga Berhad
CIMB Securities Sdn Bhd
JF Apex Securities Berhad
Inter-Pacific Securities Sdn Bhd
31.03.2003
31.03.2003
15.04.2003
23.05.2003
27.05.2003
01.07.2003
01.07.2003
16.07.2003
28.07.2003
08.10.2003
27.10.2003
10.11.2003
10.11.2003
04.12.2003
15.12.2003
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Lee Boon Leong @ Lee Boon Kim
Tan Sri Samshuri bin Arshad
Datin Tan Kuay Fong
Dato' Seri Khalid Ahmad bin Sulaiman
Tengku Syarif Bendahara Perlis Syed
Badarudin Jamalullail Ibni Almarhum Tuanku
Syed Putra Jamalullail
Dato' Yeoh Chin Kee
Haji Abdul Aziz bin Omar
Dato' Yaacob bin Haji Daud
Lee Seong Chong @ Lee Seong Cheong
Datuk Burhanuddin bin Ahmad Tajudin
Dato' Dr. Ismail bin Saad
David William Berry Aka Dayan Wazir
Dato Sri Sulaiman Abdul Rahman bin Abdul Taib
Zahardin bin Omardin
Soh Pick Har
Haji A. Rahman bin Safar
Ng Ko Chee
Haji Mansor bin Salleh
Mohd Najib bin Abdul Aziz
Izzat bin Othman
(7)
Twenty-five individuals resigned as Non-Dealing Members of the Exchange (Non-Executive Directors), viz:
Cessation of Two Member Companies (Voting Members), viz:
No. Member Company
R E P O R T
No Name
Member Company
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Seah Fook Chin
Rosely Ahmad
Datuk Oh Chong Peng
Robert Yong Kuen Loke
Robert Yong Kuen Loke
Izlan bin Izhab
Ismail bin Ibrahim
Zulkifli bin Mohd Ali
Datin Tan Kuay Fong
Dato' Kalimullah bin Masheerul Hassan
Datin Tan Kuay Fong
Dato' Kalimullah bin Masheerul Hassan
Albert Chan Huat Cheng
Jeffri Salim Davidson
Haji Mohd Ariff bin Taib
Dato' Hilmey bin Haji Mohd Taib
Khoo Bee Lin
Dr Shafiq Sit bin Abdullah
Lim Peng Cheong
Tan Sri Dato' Seri Megat Junid bin Megat Ayob
Engak @ Richard Wil Anak Uban
Henry Lian Aran
Clement Jamal Anak Eddy
Datuk Joseph Salang Anak Gandum
Seah Sen Leang
Eng Securities Sdn Bhd
Inter-Pacific Securities Sdn Bhd
K & N Kenanga Berhad
FA Securities Sdn Bhd
Mayban Securities Sdn Bhd
SimeSecurities Sdn Bhd
InnoSabah Securities Bhd
(8)
One individual admitted as Non-Dealing Member of the Exchange (Individual Shareholder), viz:
No Name
Member Company
1
Estate of Tuan Haji Mat Zuki bin Mahmud
Date of Resignation
27.01.2003
27.01.2003
08.03.2003
17.03.2003
17.03.2003
26.03.2003
27.04.2003
27.04.2003
23.06.2003
23.06.2003
23.06.2003
23.06.2003
01.07.2003
14.08.2003
31.08.2003
22.10.2003
05.11.2003
07.11.2003
10.11.2003
17.11.2003
17.11.2003
17.11.2003
17.11.2003
17.11.2003
31.12.2003
Date of Admission
18.05.2003
169
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
Membership Report
(9)
Member Company
1
2
3
4
5
Thong & Kay Hian Securities Sdn Bhd
Faidzan bin Hassan
Kong Kok Keong
Estate of Datuk Haji Ali bin Esa
Dato' Leong Kok Wah
Estate of Tuan Haji Mat Zuki bin Mahmud
15.01.2003
15.01.2003
11.11.2003
04.12.2003
09.12.2003
No. Member Company
Business Address
1
(Tangkak EAF-PA)
Tingkat Bawah
No. 4, Jalan Dataran 1
Taman Bandar Tangkak
84900 Tangkak
Johor
06.01.2003
(Melaka Branch)
Lot 1,2, 5-14, Tingkat 1
Lot 1-4, 6-8, 10-12, 13A, 13B, 14-16,
Tingkat 2, Bangunan Tabung Haji
Jalan Banda Kaba
75000 Melaka
Tel. No: 06-283 3362
Fax. No: 06-284 9886
27.01.2003
(Desa Sri Hartamas EAF-PA)
Tingkat Bawah, Tingkat Satu & Tingkat Dua
No. 33, Plaza Crystalville
Jalan 23/70 A
Desa Sri Hartamas
50480 Kuala Lumpur
27.01.2003
4
(Batu Pahat EAF-PA)
Tingkat Bawah & Tingkat Satu
No. 43 & 43A
Jalan Penjaja 3
Taman Kim's Park Business Centre
83000 Batu Pahat
Johor
18.02.2003
5
(Sibu EAF-PA)
No. 11-12
Lorong Kampung Datu 3
96000 Sibu
Sarawak
24.02.2003
Tingkat Satu
No. 62, Jalan Temerloh
28400 Mentakab
Pahang Darul Makmur
24.03.2003
Tingkat Bawah
No. 118, Jalan Genuang
85000 Segamat
Johor
18.04.2003
Bilik 7-03, Tingkat 7
Bilik 12-02 & Bilik 12-01 (Sebahagian),
Tingkat 12, Menara Keck Seng
203 Jalan Bukit Bintang
55100 Kuala Lumpur
Tel. No: 03-2711 6888
Fax. No: 03-2711 3928
21.04.2003
3
6
7
8
170
(Yong Peng EAF-PA)
Tingkat Bawah
No. 234
Jalan Besar
Taman Semberong Baru
83700 Yong Peng
Johor
05.05.2003
10
OSK Securities Berhad
(Johor Jaya EAF-PA)
Tingkat Bawah dan Tingkat Satu
No. 1 & 1-01
Jalan Rosmerah 2/11
Taman Johor Jaya
81100 Johor Bahru
Johor
26.05.2003
11
(Klang Branch)
Tingkat 3 & 4, Wisma Amsteel
No. 1, Lintang Pekan Baru
Off Jalan Meru
41050 Klang
Selangor Darul Ehsan
05.06.2003
12
(Sekinchan EAF)
No. 15, Tingkat Atas
Jalan Peria
45400 Sekinchan
Tel. No: 03-3241 5025
Fax. No: 03-3241 5023
16.06.2003
13
(Pantai Remis EAF)
No. 10 Tingkat Atas
Jalan Pantai Jaya 1
34900 Pantai Remis
Perak Darul Ridzuan
Tel. No: 05-677 5142
Fax No: 05-677 5143
15.09.2003
14
(Kampar EAF-PA)
No. 72, Tingkat Bawah
Jalan Idris
31900 Kampar
Perak Darul Ridzuan
13.10.2003
15
(Sibu Branch)
12G, H & I, Jalan Kampung Datu
96000 Sibu
Sarawak
Tel. No: 084-319 998
Fax No: 084-313193
17.11.2003
16
(Kajang EAF-PA)
No. 37, Jalan Semenyih
43000 Kajang
Selangor
17.11.2003
17
K&N Kenanga Berhad
(Penang EAF-PA)
Lot 1.02 Aras Satu
Menara KWSP
38 Jalan Sultan Ahmad Shah
10050 Penang
01.12.2003
18
(Mentakab EAF-PA)
No. 62, Tingkat 1
Jalan Temerloh
28400 Mentakab
Pahang Darul Makmur
08.12.2003
19
(Port Dickson EAF-PA)
Tingkat Bawah & Tingkat Mezanin
No. 346 & 347
Batu 1/2, Jalan Pantai
71000 Port Dickson
Negeri Sembilan
22.12.2003
20
(Rawang EAF-PA)
No. 15, Jalan Bandar Rawang 4
48000 Rawang
Selangor
22.12.2003
Date of Resignation
(10) Changes of Member Companies' Business Address - New Branch Offices, Electronic Access Facilities
(EAF) and Electronic Access Facilities with Permitted Activities (EAF-PA)
2
9
Five individuals resigned as Non-Dealing Members of the Exchange (Individual Shareholders), viz:
No Name
(Mentakab EAF)
(Segamat EAF-PA)
(Bukit Bintang, KL Branch)
R E P O R T
Effective Date
2 0 0 3
171
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
HLG SECURITIES
SDN BHD
KLSE Members as at 31 December 2003
FEDERAL TERRITORY OF KUALA LUMPUR
AMSECURITIES
SDN BHD
8th, 9th, 12th, 13th,
14th, 15th & 16th Floor
Bangunan AmBank Group
55 Jalan Raja Chulan
50200 Kuala Lumpur
Dealing Members:
1. Hj Ismail bin Abdullah
2. Mustafa bin Hj Mohd Nor
3. Chang Tuck Chee @
Philip Chang
4. Ahmad bin Bachok
Non-Dealing Members:
1. AmSecurities Holdings Sdn Bhd
2. Dato' Hj Azlan Hashim
3. Cheah Tek Kuang
4. Lee Siang Korn @ Lee Siang Chin
5. Mohamed Azmi bin Mahmood
Level 3, Menara Keck Seng
203 Jalan Bukit Bintang
55100 Kuala Lumpur
Dealing Member:
Saiful Bahri bin Zainudin
1. Affin-UOB Holdings Sdn Bhd
2. Yu Choong Cheong
3. Gen. (B) Dato' Ismail Hassan
4. Michael Sng Beng Hock
5. Dato' Yaacob bin Haji Daud
6. Izzat bin Othman
Dealing Members:
1. Wee Hoe Soon @
Gooi Hoe Soon
2. Abdul Rauf bin Ramli
3. Ooi Hun Pin
1. Avenue Assets Bhd
2. Abdul Rahim bin Awang
3. Tan Sri Samshuri bin Arshad
4. Mohd Najib bin Abdul Aziz
Dealing Members:
1. Hassan bin Jaafar
2. Rashidan Shah bin
Abdul Rahim
1. Khazanah Nasional Bhd
2. Nik Hassan bin Nik Mohd Amin
3. Dato' Anwar bin Haji @ Aji
4. Othman bin Abdul Jalal
5. Badrul Feisal bin Abdul Rahim
6. Ab. Rahim bin Haron
Telephone: 03-20951111
Facsimile: 03-20937733
BBMB SECURITIES
SDN BHD
Level 2, 3, 4 & 15
Menara Olympia
Letter Box No. 2
No. 8 Jalan Raja Chulan
50200 Kuala Lumpur
BIMB SECURITIES
SDN BHD
1st & 2nd Floor,
Podium Block, Bangunan AMDB
No. 1, Jalan Lumut
50400 Kuala Lumpur
Dealing Member:
Dato' Dr Abdul Halim bin
Haji Ismail
Facsimile: 03-40413433 / 2622 / 40414159
CIMB SECURITIES
SDN BHD
9th Floor, Commerce Square
Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
172
1. HLG Capital Bhd
2. Dato' Seri Khalid Ahmad bin
Sulaiman
Tingkat 6 - 8 dan 11
Menara Prime
No. 30, Jalan Sultan Ismail
50250 Kuala Lumpur
Dealing Members:
1. Pang Poh Ping
2. Abdul Majid bin
Hj Mohd Harun
1. Inter-Pacific Capital Sdn Bhd
2. Chan Kien Sing
3. Datuk Hj Mohd Fatmi
bin Hj Che Salleh
4. Haji Mansor bin Salleh
JUPITER
SECURITIES
SDN BHD
Menara Olympia
8 Jalan Raja Chulan
50200 Kuala Lumpur
Dealing Members:
1. Mohamad Saleh bin Md Yusof
2. Lo Kok Kee
3. Johari bin Hassan
1. Olympia Industries Bhd
2. Koperasi Polis Di Raja Malaysia Bhd
3. Looi Kheng Hwa
4. Ishak bin Hassan
5. Zahar Hj Ariffin
6. Yap Wee Keat
7. Tun Dato' Seri Abdul Hamid Omar
8. Mohamed Azahari bin Mohamed
Kamil
Dealing Members:
1. Tengku Dato' Paduka
Noor Zakiah binti Tengku Ismail
2. Tuan Hj Abdul Aziz bin Hashim
3. Dato' Ramli bin Ismail
1. K & N Kenanga Holdings Bhd
2. Raja Dato' Seri Abdul Aziz bin
Raja Salim
3. David Williams Berry aka Dayan
Wazir
4. Erdman Richard Georg Vogt
Dealing Member:
Dato' Ahmad bin Kadis
Non-Dealing Member:
KAF-Seagroatt & Campbell Bhd
Dealing Members:
1. Hashimah bt Ismail
2. Tan Giap How
3. Zulazman bin Zulkifli
1. Assedina Sdn Bhd
2. Khadijah bt Abdul Khalid
3. Lee Boon Leong @ Lee Boon Kim
Dealing Members:
1. Leong Kun Kay
2. Anne Leong Sau Leng
3. Christine Leong Yuen Leng
5. Yu Kwei Sim
6. Fauzi Hj Omar
1. Ceria Alam Sdn Bhd
2. Edaran Otomobil Nasional Bhd
3. Musa bin Haji Mohd Dahan
Dealing Member:
Hamzah bin Mahmood
1. Mayban Securities (Holdings)
Sdn Bhd
2. Tan Sri Dato' Mohamed Basir bin
Ahmad
3. Mohammad bin Abdullah
4. Hj Mohd Hashir Hj Abdullah
5. Dato' Ahmad Badri bin Mohd Basir
6. Dato' Mohammed bin
Hj Che Hussein
7. Md Agil bin Mohd Natt
AVENUE SECURITIES Ground Floor & Level 1, THB Satu
SDN BHD
Jalan Damansara Endah
Damansara Heights
50490 Kuala Lumpur
Dealing Members:
1. Omar bin Zolkifli
2. Alewi bin Ariffin
Telephone: 03-20782788 / 99
Facsimile: 03-20783162 / 03175
AFFIN-UOB
SECURITIES
SDN BHD
Dealing Member:
1. BIMB Securities (Holdings) Sdn Bhd
2. Permodalan Nasional Bhd
3. Dato' Hj Mohamad bin Shafie
4. Mustafa bin Hamat
5. Datuk Burhanuddin bin
Hj Ahmad Tajudin
6. Dato' Dr Ismail bin Saad
1. CIMB Holdings Sdn Bhd
2. Dato' Mohamed Nazir bin
Abd Razak
3. Robert Chiem Dau Meng
4. Dato' Halim @ Ahmad bin
Muhamat
5. Zahardin bin Omardin
2 0 0 3
Telephone: 03-21681168/27101168
INTER-PACIFIC
SECURITIES
SDN BHD
VOTING MEMBERS
Level 1 - 7, Menara HLA
No. 3, Jalan Kia Peng
50450 Kuala Lumpur
R E P O R T
K&N
KENANGA BHD
801, 8th Floor
Kenanga International
Jalan Sultan Ismail
50250 Kuala Lumpur
Telephone: 03-21649080/21624190
Facsimile: 03-21614990/21635927
KAF-SEAGROATT &
CAMPBELL
SECURITIES SDN
BHD
30th Floor, The Weld Tower
76, Jalan Raja Chulan
50200 Kuala Lumpur
KUALA LUMPUR
CITY SECURITIES
SDN BHD
No. 8 Jalan Binjai
Off Jalan Ampang
50450 Kuala Lumpur
LEONG & COMPANY Level 18 & 19, Wisma Cyclecarri
SDN BHD
288 Jalan Raja Laut
50350 Kuala Lumpur
MAYBAN
SECURITIES
SDN BHD
Tingkat 5 - 13, MaybanLife Tower
Dataran Maybank
No. 1 Jalan Maarof
59000 Kuala Lumpur
173
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
MIDF SISMA
SECURITIES
SDN BHD
17th & 18th Floor, Empire Tower
182, Jalan Tun Razak
50400 Kuala Lumpur
Dealing Member:
Datin Mariam Prudence bte Yusof
OSK SECURITIES
BHD
10th Floor, Plaza OSK
Jalan Ampang
50450 Kuala Lumpur
PB SECURITIES
SDN BHD
27th Floor, Bangunan Public Bank
No. 6 Jalan Sultan Sulaiman
50000 Kuala Lumpur
Dealing Members:
1. Dato' Nik Mohamed bin
Nik Yahya
2. Chin Cheng Mei
3. Wong Chong Kim
Dealing Member:
Teoh Cheng Soon
PM SECURITIES
SDN BHD
Tingkat Bawah dan Tingkat 1
Plaza MUI
Jalan P. Ramlee
50250 Kuala Lumpur
Dealing Members:
1. Noorjehan Rahima bt
Abdul Hamid Jumat
2. Chin Wooi Meng
3. Ramli bin Mahmudin
RHB SECURITIES
SDN BHD
Level 9, Tower One
RHB Centre
Jalan Tun Razak
50400 Kuala Lumpur
Dealing Members:
1. Haji Tajul Ariffin bin Mohd Tahir
2. Junaida bt Abdul Jalal
1. MIDF Sisma Holdings Sdn Bhd
2. Dato' Mohamed Ghaus bin
Badioze Zaman
3. Allen N Lopez
4. Datuk Dr Abdul Aziz bin Muhamad
5. Dato' Mohd Sallehuddin bin Othman
6. Datuk Wira Mohamed Said bin
Mohamed Ali
1. OSK Holdings Bhd
2. Loy Tuan Bee
3. Dato' Mohamed Tarmizi bin
Mohd Tahir
4. Ong Leong Huat @
Wong Joo Hwa
5. Nik Halim @ Nik Ghazi bin
Haji Nik Daud
6. Mohd Idris bin Ahmad Jais
1. Public Consolidated
Holdings Sdn Bhd
2. Tan Sri Dato' Dr Teh Hong Piow
3. Dato' Lee Kong Lam
4. Dato' Yeoh Chin Kee
5. Haji Abdul Aziz bin Omar
21st Floor, Bangunan Sime Bank
4, Jalan Sultan Sulaiman
50000 Kuala Lumpur
Menara TA One
22, Jalan P Ramlee
50250 Kuala Lumpur
JF APEX
SECURITIES BHD
3rd, 5th, 6th and 10th Floor
Menara Apex Off Jalan Semenyih
Bukit Mewah
43000 Kajang
1. RHB Sakura Merchant Bankers Bhd
2. Dato Sri Sulaiman Abdul
Rahman bin Abdul Taib
Dealing Member:
No appointment as at
31.12.2003
Dealing Member:
Attan Akmar Masbah
1. SimeSecurities Holdings Sdn Bhd
2. Nik Din bin Nik Sulaiman
3. Tunku Tan Sri Dato' Seri
Ahmad bin Tunku Yahya
4. Thavarajah a/l Chinniah
Dealing Members:
1. Chan Guan Seng
2. Ng Seng Leong
3. Kharul Hurri bin Khalid Abbas
2 0 0 3
1. Apex Equity Holdings Bhd
2. J.P Morgan Services (M) Sdn Bhd
3. Soh Pick Har
VOTING MEMBER
SELANGOR DARUL EHSAN - PETALING JAYA
MOHAIYANI
SECURITIES
SDN BHD
1st, 2nd & 3rd Floor
Plaza Damansara Utama
No. 2 Jalan SS21/60
Damansara Utama
47400 Petaling Jaya
Dealing Members:
1. Datuk Mohaiyani bt Shamsudin
2. Abdul Hamid bin Abdul Samad
3. Nik Aminaldin bin Nik Jaafar
4. Chin Kok Keng
1. BNP Paribas
2. Christian Georges Henri
Gautier De Charnace
3. Abdul Ghani bin Ahmad
4. Adam Ghani Ahmad bin
Abdul Ghani
5. Amir Ghani Ahmad bin Abdul Ghani
VOTING MEMBER
SELANGOR DARUL EHSAN - SUBANG JAYA
SJ SECURITIES
SDN BHD
Level 3, Holiday Villa
No 9, Jalan SS12/1
47500 Subang Jaya
Dealing Members:
1. Ahmad Azman bin Abdul Manaf
2. Lim Poh Ho
1. Carta Bintang Sdn Bhd
2. Dato' Ahmad Sebi Bakar
3. Yong Teck Ming
VOTING MEMBERS
SELANGOR DARUL EHSAN - SHAH ALAM
OMEGA
SECURITIES
SDN BHD
15th Floor
Plaza Perangsang
Persiaran Perbandaran
40990 Shah Alam
(Dealer's licence
revoked by the
Securities Commission
on 5 June 1998)
Telephone : 03-22749288/778
TA
SECURITIES BHD
SELANGOR DARUL EHSAN - KAJANG
1. PM Asset Management Sdn Bhd
2. Datin Munirah binti Abdullah Ng
3. Dato' Abdul Raman bin Suliman
4. Zainal Rashid bin Zainal Abidin
5. Dato' Seri Dr Ting Chew Peh
SIMESECURITIES
SDN BHD
VOTING MEMBER
R E P O R T
Dealing Members:
1. Abdullah bin Ayub
2. Tiah Thee Peng
3. Yeo Lee Hoe
VOTING MEMBERS
JOHOR DARUL TAKZIM - JOHOR BAHRU
ENG SECURITIES
SDN BHD
95, Jalan Tun Abdul Razak
80000 Johor Bahru
Johor Darul Takzim
1. TA Enterprise Berhad
2. U Chin Wei
Dealing Member:
Lim Khuan Eng
Non-Dealing Member:
1. Inter-Pacific Capital Sdn Bhd
2. Datuk Hj Mohd Fatmi bin
Hj Che Salleh
3. Azlan Meah bin Hj Ahmad Meah
4. Chan Kien Sing
Dealing Members:
1. Idris bin Osman
2. Loong Sze Tung
3. Lim Tiong Chin
4. Haji Abdul Rahman bin Ahmad
1. Dynamic Pearl Sdn Bhd
2. Dato' Wong Pui Lam
3. Chuah Seong Phaik
Telephone: 07-2231211/8212
A. A. ANTHONY
SECURITIES
SDN BHD
Suite 8.2 Level 8
Menara Sarawak Enterprise
No. 5 Jalan Bukit Meldrum
80300 Johor Bahru
Johor Darul Takzim
Non-Dealing Member:
Omega Holdings Bhd
174
175
K U A L A
L U M P U R
S T O C K
E X C H A N G E
B E R H A D
A N N U A L
VOTING MEMBERS
PERAK DARUL RIDZUAN
VOTING MEMBER
KELANTAN DARUL NAIM
BOTLY SECURITIES
SDN BHD
KOTA BHARU
SECURITIES
SDN BHD
298 Jalan Tok Hakim
15000 Kota Bharu
Kelantan Darul Naim
1st Floor, Plaza Teh Teng Seng
227, Jalan Kampar
30250 Ipoh
Perak Darul Ridzuan
Dealing Member:
Mohamad bin Ab Aziz
VOTING MEMBERS
MELAKA
MALACCA
SECURITIES
SDN BHD
No. 1, 3 & 5, Jalan PPM 9
Plaza Pandan Malim
Business Park, Balai Panjang
75250 Melaka
1. Pakatan Canggih Sdn Bhd
2. Mohd Faiz bin Abdullah
3. Chan Gak Keong
4. Wong Hong Meng
Facsimile: 06-3371550/3371577
1. T.M. Lim Sdn Bhd
2. Kuala Lumpur City Corporation Bhd
3. Dato' Mohamed Zain bin
Mohamed Yusof
4. Ng Ko Chee
Dealing Member:
Ahmad Sabri bin Harun
1. TA Entereprise Berhad
2. U Chin Wei
M & A Building
52A, Jalan Sultan Idris Shah
30000 Ipoh
Perak Darul Ridzuan
Dealing Members:
1. Choo Sen Yoong
2. Dato' Thong Kok Yoon
1. Insas Bhd
2. Alias bin Haji Ahmad
Dealing Members:
1. Raja Puan Sri Dato' Noora
Ashikin bt Raja Abdullah
2. Lee Seang Seng
1. SBB Capital Markets Sdn Bhd
2. Ramuda Sdn Bhd
3. Nordin bin Yahaya
4. Dato' Tan Teong Hean
Dealing Member:
Isa bin Mustapha
1. FA Peninsular Bhd
2. Perbadanan Menteri Besar
Terengganu
3. Dato' Muhamad Fasri bin Samsudin
Dealing Member:
Ismail bin Nik Man
1. PTB Securities Holdings Sdn Bhd
2. Mat Zaid bin Ibrahim
3. Dato' Mazlan @ Mohd Nanri bin
4. Hj Yusoff bin Hj Tahir
SBB SECURITIES
SDN BHD
51 - 53 Persiaran Greenhill
30450 Ipoh,
Perak Darul Ridzuan
VOTING MEMBERS
PENANG
HWANG-DBS
SECURITIES BHD
Level 2, 3, 4, 7 & 8
Wisma Sri Pinang
60 Green Hall
10200 Penang
Dealing Members:
1. Dato' Seri Hwang Sing Lue
2. Tunku Dato' Seri
Nadzaruddin Ibni Tuanku Ja'afar
3. Hwang Lip Teik
THONG & KAY HIAN Wisma Sri Pinang
SECURITIES
Level 5 & 6, 60 Green Hall And
SDN BHD
Level 4, Mutiara I & P
No. 47, Green Hall
10200 Penang
Dealing Members:
1. Thong Wai Loen
2. Thong Yue Leong
3. Thong Miew Peng
1. Hwang-DBS (Malaysia) Berhad
2. Tunku Tan Sri Imran ibni Tuanku
Ja'afar
3. Ong Eng Kooi
4. Tengku Syarif Bendahara
Perlis Syed Badarudin
Jamalullail ibni Almarhum
Tuanku Syed Putra Jamalullail
1. UOB Kay Hian (M) Holdings
Sdn Bhd
2. Segmen Cahaya Sdn Bhd
3. Wee Ee Chao
4. Tang Wee Loke
VOTING MEMBERS
TERENGGANU DARUL IMAN
FA SECURITIES
SDN BHD
No. 51 & 51A, Ground, Mezzanine
dan Tingkat 1
Jalan Tok Lam
20100 Kuala Terengganu
Terengganu Darul Iman
PTB SECURITIES
SDN BHD
Hashim
Facsimile: 04-2635741/2622852
UT SECURITIES
SDN BHD
Bangunan Mayban Trust
3 Penang Street
10200 Penang
BUTTERWORTH
MERCURY
SECURITIES
SDN BHD
Ground, 1st, 2nd & 3rd Floor
Wisma UMNO
Lorong Bagan Luar Dua
12000 Butterworth
Seberang Perai
Facsimile: 04-3231813/ 3312195
176
Tingkat 1, 2 & 3
No. 61 Jalan Sultan Ismail
Peti Surat 151
Pejabat Pos Besar
20700 Kuala Terengganu
Terengganu Darul Iman
Dealing Members:
1. Frederick Ng Kweng Chan
2. Ling Hee Keat
Telephone: 04-2626644/6660
VOTING MEMBER
2 0 0 3
Facsimile: 05-2536785/2557950
M & A SECURITIES
SDN BHD
Dealing Members:
1. Sim Swee Tin
2. Sim Cheng Khuan
R E P O R T
1. Rentak Wira Sdn Bhd
2. Goh Choon Lye
3. Dato' Kamaruddin bin Jaafar
4. Lee Seong Chong @
Lee Seong Cheong
VOTING MEMBER
SABAH
INNOSABAH
SECURITIES
BHD
11 Equity House, Block K
Sadong Jaya, Karamunsing
88100 Kota Kinabalu
Sabah
Dealing Member:
N/A
1. Kretam Holdings Bhd
2. Seah Sen Leang
3. Lee Swi Heng
Dealing Member:
Chew Sing Guan
1. Hj Shuaib Lazim
2. Haji A. Rahman bin Safar
3. Enrogetz Sdn Bhd
Number of Members Companies (Voting Members): 39
Number of Dealing Members: 83
Number of Non-Dealing Members: 151
m/ship-rpt 31 December 2003 (Annual Report)
Last update - 30/12/2003
177
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Annual Report 2003 - Bursa Malaysia Berhad

Transcription

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