Bursa Malaysia’s Q3 net profit more than doubles to RM121.93m

by BERNAMA / pic by TMR FILE

BURSA Malaysia Bhd’s net profit more than doubled to RM121.93 million for the third quarter ended Sept 30, 2020 compared with RM47.10 million in the same quarter last year amid improved performance on the securities and derivatives market.

Revenue stood at RM237.74 million versus RM122.67 million previously.

Net profit for the nine months stood higher at RM272.89 million compared with RM140.29 million, while revenue rose to RM568.27 million compared with RM373.15 million previously.

“Against the backdrop of unprecedented circumstances, the exchange delivered an exceptional nine months 2020 financial performance, recording the highest ever nine-month Profit After Tax and Minority Interest (PATAMI) since listing in 2005,” chief executive officer Datuk Muhamad Umar Swift said.

“The on-going developments with regards to COVID-19, low-interest-rate environment, the Malaysian government’s stimulus packages and the gradual re-opening of the economy continue to support investor participation across segments led by domestic institutions and retail.

“The continuous operations of our markets have been critical in making available the necessary liquidity and risk management tools for investors to respond in a higher volatility environment and invest in new opportunities,” he said in a statement today.

Investor participation in the Securities Market continued to increase, with average daily trading value (ADV) growing by 101.8 per cent to RM4.0 billion in nine months 2020 compared with RM2.0 billion in nine months of 2019.

As a result, securities trading revenue increased by 101.1 per cent to RM349.2 million in the nine months of 2020 from RM173.6 million in 9M2019. The additional number of trading days and the higher effective clearing fee in 9M2020 also contributed to the increase in trading revenue.

Trading velocity increased by 34 percentage points to 62 per cent compared with nine months of 2019.

Non-trading revenue increased by 7.0 per cent to RM110.9 million from RM103.6 million in the previous corresponding period. This was contributed by higher market data revenue which increased by 20.4 per cent to RM26.7 million in nine months of the year from RM22.2 million in the same period last year, underpinned by the rise in the number of new subscribers, said Bursa Malaysia.

Derivatives Market trading revenue increased by 33.8 per cent to RM69.2 million in nine months of 2020 from RM51.7 million in the same period last year, mainly due to higher number of contracts traded for Crude Palm Oil Futures and FTSE Bursa Malaysia KLCI Futures.

“While key economic indicators are pointing towards an improving outlook for the Malaysian economy, the on-going developments of the COVID-19 pandemic will continue to influence the volatility and performance of the Securities and Derivatives markets.

“We have been working closely with other regulators to ensure market efficiency and improved market accessibility and liquidity to support participants during this period,” said Umar.

He said despite the challenges, Bursa Malaysia is well-positioned to continue developing the marketplace and make further progress on its strategic plans.

“We have seen promising results after successfully conducting five listing ceremonies and holding our flagship events, namely Invest Malaysia Conference and Palm and Lauric Oils Price Outlook Conference & Exhibition fully virtual. Each of these initiatives is important towards making our offerings and our market to continue to remain relevant to our diverse range of investors,” Umar said.