Chief Executive Officer of Kuala Lumpur Stock Exchange Berhad (KLSE Bhd) and Director of Malaysia Derivatives Exchange Berhad (MDEX), Yusli Mohamed Yusoff said, to date, it has been a time of highs for both the derivatives and securities industry.
"The KLSE Composite Index recently recorded a four year high at 885.34 points in February 2004. This supersedes the highest record in 2003 at 817 points, 2002 at 808.07 points and 2001 at 736 points.
"It has been just as exciting in the derivatives market. Trading volume in derivatives hit a historical high of 246,554 contracts registered in October 2003, compared to the previous high of 187,799 in July 2003," he said.
Yusli was speaking at the Annual Palm & Lauric Oils Conference & Exhibition: Price Outlook 2004/2005 (POC2004), an annual international conference organised by MDEX. YB Dato' Seri Dr Lim Keng Yaik, Ministry of Primary Industries Malaysia officiated the conference.
Yusli said since its inception in 1989, participation in POC has grown from strength to strength.
"POC has truly become a unique international event, offering the best of Malaysia to the world.
"This annual event continues to expand in international participation and significance. For POC 2004/2005 we have over 1300 participants who will be hearing from 13 industry experts from around the world," he said.
On the derivatives market, Yusli said trading volume was up 55.34 % at over 2 million contracts for all derivatives products in 2003 as compared to 1 million contracts in 2002.
" Specific to Crude Palm Oil Futures or FCPO - the total volume of trade cumulative to date grew by 45.54 % as at market close on 2 March 2004 compared to 2 March 2003.
"In fact, FCPO recorded its highest volume on 21st October 2003, with total volume of 14,508 contracts. This is the highest gain for FCPO in 23 years since its commencement in 1980," Yusli said.
In the on-going effort to enhance investor participation and boost market liquidity, MDEX has launched 3 new products in 2003 - the 3-Year Malaysian Government Securities (FMG3) Futures, the 10-Year Malaysian Government Securities (FMGA) Futures and a modification to the KLSE Composite Index Futures (FKLI).
To further enhance this effort, MDEX launched the Palm Kernel Oil Futures or FPKO on 20 February 2004.
"Whilst contributing to the deepening and broadening of the derivatives market, the introduction of FPKO will enable participants to be in a better position, to monitor, manage, and therefore control the pricing and marketing of their products more effectively.
"With 8 products now listed on the exchange, combined with the renewed interest in derivatives products and enhanced investor confidence, MDEX is even more committed in contributing towards a more efficient and effective investment environment," Yusli added.
