KLSE Main and Second Board join

TheStar News
PM: Bursa’s Main, Second Boards to be combined

Lets review some history of Malaysia stock exchange from wikipedia.

The Stock Exchange of Malaysia was officially formed in 1964 and in the following year, with the secession of Singapore from Malaysia, the common stock exchange continued to function under the name Stock Exchange of Malaysia and Singapore (SEMS).

The second board are mean to allow medium size company to get listed with a lower entry requirement compare to main board listing.

Traditionally, main board has the highest number of blue chip company, while the second board, are highly speculated when hot money flow into the market.

The original intention of having second board, Masdaq, etc are mean to have different “entry criteria”, or perhaps evolve to another index that in par with main board.

Alas , due to weak administration, this is never materialised. Prudent investor still stay away from Second board and Mesdaq. During economy downturn, trade on 2nd board and Mesdaq are negligible. Due to this reason, gap between main board vs 2nd board, Mesdaq index keep widening.

In fact, the merging are welcome to stock broker and second board company director.

However, in order to do this, Badawi must amend the stock exchange act.


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