Bursa Malaysia records 13% increase in net profit for 1Q18

By ALIFAH ZAINUDDIN / Pic By ISMAIL CHE RUS

Bursa Malaysia Bhd reported a 12.6% year-on-year (YoY) increase in net earnings for its first quarter ended March 31, 2018 (1Q18), to RM63.78 million on higher operating revenue.

Revenue for the term soared to a record high of RM150.71 million — the highest quarterly figure since 2005 — against RM142.69 million in the corresponding period a year ago.

CEO Datuk Seri Tajuddin Atan said the continued growth of the capital market reflected the progress made by the exchange’s strategic initiatives.

“The 1Q18 has seen average daily trading value (ADV) for the securities market’s on-market trades (OMT) continue to grow, reaching RM2.7 billion in the 1Q.

“We also saw the listing of MyETF-US50 (MyETF Dow Jones US Titans 50), the first foreign currency securities listing, establishing the exchange as a multi-asset and multi-currency exchange.

“We will endeavour to achieve further positive trend of growth by continuing with our market development and marketing efforts,” Tajuddin said in a statement yesterday.

For the quarter under review, securities market trading turnover grew by 13.5% YoY to RM76.3 million from RM67.2 million in the previous corresponding quarter, driven by higher ADV for OMT.

Non-trading revenue increased by 7.9% to RM45.6 million from RM42.3 million, contributed by higher listing and issuer services fees, as well as depository services fees.

The derivatives market, on the other hand, saw its trading revenue decline by 10.5% to RM19 million for the quarter against RM21.2 million due to the lower number of contracts traded.

Average daily contracts in 1Q18 was at 54,020 contracts compared to 62,076 contracts in 1Q17, marking a decrease of 13% YoY.

For the Islamic capital market, the Bursa Suq Al-Sila’ trading revenue rose marginally by 0.1% to RM4 million on the introduction of volume-based pricing in December 2016.

The Islamic capital market’s ADV grew by 30.2% to RM22.6 billion, contributed by higher trades from both domestic and foreign participants.

Tajuddin said the local exchange will continue to maintain this positive momentum by seeing through the implementation of initiatives that further enhance and expand the market ecosystem.

“The measures announced by the government earlier this year to liberalise and boost our capital market is an opportunity that further complements our areas of focus, and provides us the impetus to continue delivering on our promise to develop a sustainable marketplace and enhance the breadth and depth of the eco-system,” he said.