Published June 5, 2009

Bursa M'sia says higher trading to boost earnings

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(KUALA LUMPUR) Bursa Malaysia Bhd, operator of the nation's stock exchange, expects a surge in trading volume in the second quarter to have a 'very positive' effect on earnings, chief executive officer Yusli Mohamed Yusoff said.

'Volumes are more than double what they were in the first quarter, so that's a good sign,' Mr Yusli said in an interview with Bloomberg Television in Hong Kong yesterday.

'As trading activity picks up, we do expect our revenue numbers and our profit and loss numbers to improve accordingly.'

The key Kuala Lumpur Composite Index has risen 22 per cent in the past three months, reflecting gains in Asian stock markets amid optimism the global recession is easing. The measure fell 39 per cent last year, the biggest decline in more than a decade.

'The market rally has surprised everyone, nobody expected it to rebound so strongly and this has been a positive surprise for Bursa and for investors,' said Jason Chong, who helps oversee US$1.6 billion of UOB-OSK Asset Management here.

'The big question is whether the momentum is sustainable. That will very much depend on the recovery in the global economy.' - Bloomberg