Executive Chairman of KLSE Dato' Mohd Azlan Hashim said investor participation on KLSE is commendable and well balanced, given the combination of domestic and international investors participating in the Malaysian stockmarket.
"As at end 2002, the shareholding by international investors was valued at RM87 billion compared to total shareholding valued at RM480 billion on KLSE.
"In terms of trading activity, international trading activity has been on an increasing trend since 1999. For the year ended 2002, international trading accounted for RM84 billion of the total trading value of RM261 billion on KLSE.
"One of the attractions of our market is that it is a diverse, vibrant and growing market that has responded positively to the test of time," he said. Mohd Azlan was speaking at the 4th Annual Capital Markets Conference 2003 in Kuala Lumpur today.
"In terms of investment choice, KLSE has the largest number of listed companies in the ASEAN region. As at 18 July 2003, there are 878 companies listed on KLSE representing 15 sectors.
"Of these, 162 companies have market capitalisation of more than RM 500 million and 19 companies have market capitalisation of over RM5 billion. More than 42% of these companies are trading below the audited net tangible asset - making these companies very attractive to investors.
"Total market capitalisation of KLSE is RM561 billion as at 18 July 2003, making KLSE the largest market in ASEAN. The current market capitalisation of KLSE represents an almost four fold increase since 1990" he said.
Mohd Azlan added the KLSE Composite Index (KLCI) has improved consistently with positive developments from within and outside the country. Domestically, the government has introduced a package of measures positive for the capital market and securities industry in March 2003, to include enhancing investor participation, enhancing market liquidity and enhancing efficiency of the capital raising process.
Additionally, at a broader level, the government has also introduced a package of strategies in May 2003 to stimulate overall economic growth for the nation, including encouraging private investments, strengthening the country's competitiveness, generating new sources of growth and increasing the effectiveness of the delivery system of the government and private sector.
Mohd Azlan said KLSE has also implemented measures including standardisation of board lots to 100 units for all securities listed on KLSE in May 2003, to enhance investor participation and market liquidity.
"The KLSE Composite Index has gained more than 10% this year to date.
"There has also been a surge in trading activity recently. The average daily volume in the first six months of this year was 284 million units valued at RM472 million. The average daily volume for July to date is 853 million units valued at RM1294 million," he added.
Mohd Azlan said in the light of increasing challenges and as a progressive exchange, KLSE will continue to meet expectations of all parties, international and domestic, in terms of fulfilling its role as a capital raising centre and an investment destination.
