<p>The Kuala Lumpur Stock Exchange (KLS) is a stock market located in Malaysia, serving as the country's primary exchange for trading securities. Established in 1964, it plays a crucial role in the nation's economy by facilitating the raising of capital and providing a platform for investors to trade stocks, bonds, and derivatives.</p>

<h2>How It Works</h2>
<p>The KLS operates as an electronic exchange, utilizing a centralized trading system called Matching Engine. Here's a simplified breakdown of how it works:</p>
<ul>
  <li>Trading participants, such as brokers and investors, submit buy and sell orders through their respective trading platforms.</li>
  <li>These orders are then sent to the Matching Engine, which matches them based on price and time priority.</li>
  <li>The exchange's trading hours are from 9:00 AM to 12:30 PM, and 2:30 PM to 5:00 PM (local time) on weekdays.</li>
</ul>

<h2>Why It Matters</h2>
<p>The KLS matters for several reasons. Firstly, it provides a platform for companies to raise capital by listing their shares, enabling them to grow and expand their businesses. Secondly, it offers investors, both local and foreign, the opportunity to participate in Malaysia's economic growth by investing in listed companies. Lastly, the KLS plays a vital role in the country's financial stability by promoting transparency and accountability among listed companies.</p>
<p>For instance, <strong>Petronas</strong>, Malaysia's national petroleum corporation, is listed on the KLS. Its shares are among the most actively traded and provide investors with exposure to the energy sector.</p>