Bursa lists MIDF Investment, KAF Equities as Islamic brokers


BURSA Malaysia Bhd has listed MIDF Amanah Investment Bank Bhd (MIDF Investment) and KAF Equities Sdn Bhd as brokers offering Islamic stockbroking services on Bursa Malaysia-i.

The local bourse said MIDF Investment has commenced its Islamic stockbroking operations in the third quarter of 2019 (3Q19).

“Islamic stockbroking services play an important role in managing clients’ securities trading whereby the trade and post-trade activities are segregated from conventional securities,” it said in a statement recently.

Bursa Malaysia-i is the world’s maiden end-to-end Shariah-compliant investing platform launched in September 2016.

The platform offers a range of exchange-related facilities including listing, trading and depository services which leveraged Bursa Malaysia’s existing infrastructure that incorporates Shariah-compliant features.

At present, there are 15 brokers who offer Islamic stockbroking services in Bursa Malaysia-i, of which one is on a full-fledged basis, while the remaining 14 are on a “window” basis.

Bursa Malaysia CEO Datuk Muhamad Umar Swift said the recent addition of Islamic brokers in Bursa Malaysia-i aims to boost the growth of Malaysia’s capital market and position the country as a global leader in Islamic finance.

“Bursa Malaysia is pleased to welcome MIDF Investment and KAF Equities as part of the Bursa Malaysia-i family of Islamic brokers.

“We look forward to the increased participation and continued support from our brokers to spur the growth and vibrancy of our marketplace and upholding Malaysia’s position as a global leader in the Islamic capital market,” he said.

MIDF Investment CEO Datuk Dominic Silva said Bursa Malaysia-i enables the investment bank to promote its service to a wider customer base, including in the Islamic capital market.

“Being part of Bursa Malaysia-i is yet another significant milestone for us in our efforts to enhance MIDF Investment’s offerings and services.

“We are certainly pleased to be able to promote inclusivity to an even wider range of clients by offering our Shariah-based services in the Islamic capital markets,” he said in the statement.

KAF Equities MD Datuk Ahmad Kadis said being listed as one of the Islamic brokers in Bursa Malaysia-i would enhance its equities platform which provides an end-to-end Shariah-compliant service.

“We are pleased to be part of Bursa Malaysia-i as it further enhances our equities platform by providing an end-to-end Shariah-compliant service for our clients given the tremendous growth in the Shariah market capitalisation in recent years,” he said.

In its recent 4Q19 ended Dec 31, 2019, Bursa Malaysia’s net profit dropped 12.15% to RM45.46 million from RM51.86 million a year ago due to higher operating expenses. The revenue for the quarter rose 0.32% to RM129.33 million compared to RM128.92 million previously.

The local bourse said its total operating expenses for the financial year 2019 was up by 2% to RM246.19 million, while its securities market trading revenue declined by 12.3% to RM232.84 million.