Main Market vs ACE Market Bursa Malaysia: Key Differences Explained
•By Siti Afizah Rincing
Artikel ini juga tersedia dalam Bahasa Melayu
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Main Market and ACE Market are two types of markets available on Bursa Malaysia.
On Bursa Malaysia, the Main Market is the primary market where companies that are listed are well-established and financially stable.
Meanwhile, the ACE Market is Bursa Malaysia's market for companies that have strong growth prospects.
If we refer to the Mplus (M+) Platform as shown in the image above, the turquoise/light blue colour represents the Main Market while the purple colour represents the ACE Market.
Bursa Malaysia, formerly known as the KLSE (Kuala Lumpur Stock Exchange), can be likened to a 'marketplace' where the public (investors) and companies (business owners) buy and sell shares.
The stock market is a place where companies can raise capital so that a business can be expanded and developed.
On Bursa Malaysia, there are 3 markets that we should know about. These markets are the Main Market, ACE Market, and LEAP Market.
This article will not go into further detail about the LEAP Market as not everyone can trade on the LEAP Market. The focus this time is on the Main Market and ACE Market.
So how do we differentiate between these two markets? What are the criteria for each market?
There are several criteria that differentiate the types of markets on Bursa Malaysia.
To find out these criteria, you need to search for Bursa Malaysia on any search engine.
You will be redirected to the home page. Click on Listing, then Get Listed, followed by Listing Criteria, as shown in the image below.
After clicking on listing criteria, the display will appear as shown below.
The image above shows a summary comparison between the 3 markets available on Bursa Malaysia.
For more details, you can refer to the quantitative criteria and qualitative criteria.
Hopefully, you now understand the differences between Main Market and ACE Market based on the various aspects set by Bursa Malaysia.
We hope this article has been beneficial for all of you.
The Main Market is for large, well-established companies that have a strong financial track record and meet minimum profit requirements. The ACE Market, on the other hand, is for smaller or emerging companies that are backed by sponsors and do not need to meet strict profit requirements.
Generally, yes. ACE Market stocks tend to be riskier as the listed companies are usually smaller and still in their growth phase. However, they can also provide higher returns if the company successfully expands. Investors should do thorough research before investing.
Yes, a company can apply to transfer from ACE Market to Main Market if it meets all the Main Market listing requirements. This process is called a transfer listing and requires approval from Bursa Malaysia.
Both markets use the same minimum lot size of 100 units (1 lot). The main difference is in terms of share price — Main Market shares are usually priced higher while ACE Market shares are typically priced lower per unit.
Whether you are interested in Main Market or ACE Market stocks, the first step is to open a CDS account — open your CDS account here to start investing on Bursa Malaysia.
New to stock investing? Download our free stock basics ebook to understand the fundamentals of investing from scratch.
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