Bursa Malaysia extends relaxation of rules to help listed companies amid prolonged lockdown

Market Sentiments | INVE$T #62

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Bursa Malaysia Bhd provides two additional relief measures to help listed issuers cope with the extended lockdown amid the Covid-19 pandemic, which continues unabated. The first is an automatic one-month extension for the issuance of quarterly and annual reports for listed issuers on the Main and ACE Markets, as well as semi-annual and annual audited financial statements for those in the LEAP Market, which are due on July 31 and Aug 31, 2021, respectively. Notwithstanding the one-month extension, listed issuers are reminded to promptly announce any material information to ensure informed investment decisions by shareholders and investors at all times. Such listed issuer will not be classified as a PN17/GN3 listed issuer during this period. The second is a 12-month relief period granted for a listed issuer who, within the same July 1 and Dec 31 period, announces that it has an insignificant business or operations. Both the relief measures will allow an affected listed issuer to reassess its financial condition or level of operations at the end of the relief period before making the requisite announcements to the exchange. These measures are in addition to those introduced earlier this year in February and May, after considering the lingering impact of various movement control orders or and the recent nationwide lockdown. 

FTSE4Good Bursa Malaysia review sees 10 changes in constituents 

According to Bursa Malaysia Bhd there will be six new entrants to the FTSE4Good Bursa Malaysia (F4GBM) Index, while four companies have been dropped from the index in the semi-annual review. The index, which measures the performance of listed companies demonstrating strong environmental, social and governance (ESG) practices, welcomed DKSH Holdings (M), Heineken Malaysia, Mah Sing Group, MNRB Holdings, Pos Malaysia and Unisem (M). The review will also see the exclusion of George Kent (M), IOI Properties Group, KLCC PROP & REITS – Stapled Securities and Top Glove Corp from F4GBM. The constituent changes will take effect at the start of business on June 21. With the changes, the number of constituents in the index stands at 76, compared with 75 as at the last index review in December 2020 and 74 as of February 2021 (due to the delisting of Chemical Company of Malaysia Bhd). The F4GBM constituents are drawn from the companies on the FTSE Bursa Malaysia EMAS Index, comprising PLCs from across the small, medium and large market capitalisation segments and the index is reviewed in June and December against international benchmarks. Bursa and its partner, FTSE Russell, have been conducting outreach programmes to encourage and support companies in improving their ESG disclosures and practices. The continuous increase in the number of constituents reflects the benefits of these programmes, in addition to other efforts catalysing public listed companies towards ESG best practices. 

MCMC focusing on national digitalisation for economic recovery 

According to the Malaysian Communications and Multimedia Commission (MCMC), national digitalisation continues to be its main focus to assist the country in providing a solid platform for an economic recovery in line with the National Recovery Plan (PPN). As the regulatory body responsible for the communications sector covering telecommunications and the Internet, post and courier as well as broadcasting, it is committed to continuing to ensure continuity of operations in essential services throughout the movement control order (MCO) period. A phased economic reopening is important for essential services to operate at the required level and adopt the standard operating procedures (SOPs) that have been set in a disciplined manner. The people could utilise Internet connectivity for daily activities, such as e-commerce, working from home (WFH) and home-based teaching and learning (PdPR). This can help the government’s effort to reduce infection clusters in the workplace. To achieve the PPN agenda, among the programmes developed with the industry are the National Digital Network (JENDELA) for connectivity, the National Courier Accelerator Plan (PAKEJ) for delivery of goods, the transformation of the state MCMC offices and the development of community Internet centres (PIK). Elaborating on the PAKEJ initiative, more pickup and drop-off (PUDO) points had been set up nationwide. The broadcasting sector had been given permission to continue operating during the MCO period to enable the people to follow current developments safely and comfortably from home, as well as enable them to plan daily activities through authentic and accurate information. 

Eye On The Markets 

This week, on Thursday (17Jun), the Ringgit was 4.1380 against the USD from 4.1150 on Monday (14Jun). Meanwhile, the Ringgit was 3.0906 to the Sing Dollar on Thursday (17Jun). On Monday (14Jun), the FBM KLCI opened at 1582.46. As at Friday (18Jun) 10:00am, the FBM KLCI is down 16.06 points for the week at 1566.40. Over in US, the overnight Dow Jones Industrial Average closed down 210.22 points (-0.62%) to 33,823.45 whilst the NASDAQ added 121.67 points (+0.87%) to 14,161.35.  

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