Market to continue momentum in 2H

By DASHVEENJIT KAUR/ TMR Pix by HUSSEIN SHAHARUDDIN

BURSA Malaysia Bhd anticipates the momentum of its impressive performance during the first-half of 2017 (1H17) will continue into 2H.

At a media briefing announcing the bourse’s results for the 1H ended June 30, 2017, CEO Datuk Seri Tajuddin Atan (pic) said that the confidence is based on the recovery that is seen in developed markets globally, which has also influenced the new and emerging markets.

“While there are those who are pessimistic about this, I believe the positive momentum will indeed continue,” he said.

Tajuddin is also positive about the net inflow of foreign funds in 2H17 after the first six months saw about RM10.6 billion flowing into the country’s equities market.

“We’re confident that we’ll see more fund inflows based on the pipeline. As of today, we saw a total of RM11.2 billion inflow and that is quiet satisfying, we are optimistic about the rest of the year,” he said.

Tajuddin said the 1H17 saw one major listing and he is expecting one more in 2H17.

“Fundraising exercise would be better this year compared to 2016. During the first six months, the total raised was more than the whole of 2016,” he said.

The 1H17 saw eight initial public offerings that raised a total of RM3.5 billion compared to five listings which raised RM400,000 in the same period last year.

Tajuddin said that Bursa Malaysia’s strong performance in the 1H17 came on the back of increased trading activities across all segments.

“We are seeing renewed interest especially from foreign funds, and I am pleased to note that they are continuing to return to Malaysia’s capital market since the start of the year,” he said.

Bursa Malaysia recorded a profit after tax and minority interest (PATAMI) of RM116.2 million for the 1H17, 16.9% higher than a year ago.

The rise in PATAMI was due to higher operating revenue, which came in at RM269.4 million, an 8.5% increase year-onyear (YoY).

Tajuddin said the amount represents the bourse’s best half year operating revenue since its listing in 2005.

The exchange also declared an interim and a special dividend of 20 sen per share and 15 sen per share respectively.

The annualised return on equity increased by one percentage point to 26%.

Meanwhile, cost-to-income ratio improved by three percentage points to 44%.

For the second-quarter of 2017 (2Q17), Bursa Malaysia’s PATAMI increased by 20.3% to RM59.5 million compared to the corresponding quarter ended June 30, 2016.

Its operating revenue for 2Q17 saw a 10.3% increase to RM134.8 million.

Market capitalisation of Bursa Malaysia as at June 30, 2017, stood at RM1.8 trillion, a 10.7% increase YoY.

Stronger domestic trade contributed to a 30.8% increase in average daily trading value (ADV) for the securities markets on-market trades to RM2.5 billion.

On the Islamic capital market front, Bursa Malaysia’s effort to seek and grow foreign participation continues to reap rewards.

Stronger trade by foreign participants resulted in a 6.5% growth in ADV on Bursa Suq Al-Sila to RM18.1 billion in 1H17.