Bursa erases gains after rising on CEO's comment

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KUALA LUMPUR (Apr 1): Bursa Malaysia Bhd erased gains after rising earlier following its chief's comment that the company hoped to maintain its performance this year. This was despite a challenging capital market environment for the bourse regulator and operator.

Bursa Malaysia (fundamental: 2.3; valuation: 2.1) shares fell as much as 10 sen or 1.2% to RM8.30 before paring losses. At 10.20am, the stock was traded at RM8.33 albeit on thin trade of 9,500 shares.

The stock had earlier risen to RM8.45, its highest so far today.

For comparison, the FBM KLCI declined 3.23 points or 0.18% to 1,827.55.

Yesterday, Tajuddin told reporters that he believed that based on the company's fundamentals, Bursa Malaysia may maintain its current performance.

Tajuddin hopes that Bursa Malaysia will be able to maintain its growth for the past six years by improving efficiency, besides products and services.

“I think 2015 will be a challenging year, given the global market volatility, the volatility on commodity prices and also external factors,” said Tajuddin.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)