by AUFA MARDHIAH

BURSA Malaysia Bhd’s net profit for the second quarter ended June 30, 2024 (2Q24) rose by 5.5% year-on-year (y-o-y) to RM80.45 million, up from RM76.25 million in the same period last year.

The increase was driven by improved market sentiment, with group revenue jumping 38.3% to RM199.94 million.

For the first half of 2024 (1H24), Bursa’s net profit surged 17.4% to RM155.48 million, compared to RM132.42 million in the same period last year. 

Revenue also increased to RM387.14 million from RM301.1 million. 

The company declared an interim dividend of 18 sen per share, totaling RM145.7 million, with a payout ratio of 93.7%.

In the first half of 2024, the securities market achieved trading revenue of RM192.2 million, up 52.6% from RM126.0 million in 1H23. 

This was fueled by a rise in the average daily trading value (ADV) for securities market trades, which increased to RM3.5 billion from RM2.1 billion. 

Trading velocity also rose by 14 percentage points to 42%.

Non-trading revenue for the securities market grew by 9.6% to RM72.3 million, driven by listing and issuer services, and depository services, which contributed RM33.1 million and RM31.4 million, respectively.

Its chairman Tan Seri Abdul Wahid Omar attributed the strong performance to improved liquidity and positive market sentiment, fueled by optimism in Malaysia’s economic progress. 

He noted that the country’s GDP is expected to grow by 5.8% in Q2, which could further stimulate capital market activities.

“Considering the positive outlook and after taking into account our first half performance, the Board has revised our profit before tax (PBT) headline key performance indicator (KPI) higher, to a range of RM361 million to RM379 million from the previously announced range of RM293 million to RM323 million. We are also optimistic on achieving our other headline KPIs for the financial year ending 2024,” he said.

Its CEO Datuk Muhamad Umar Swift highlighted the strong performance of Malaysia’s capital market in 1H24, including a record high market capitalisation of RM2.0 trillion and the FBM KLCI reaching its highest level in three years. 

He expressed optimism that this positive momentum could continue, supported by active trading in the securities market.

Derivatives trading revenue increased by 16.8% to RM51.9 million in 1H24, driven by higher trading volumes in crude palm oil futures and FTSE Bursa Malaysia KLCI Futures contracts.

However, revenue from Bursa Suq Al-Sila’, the Islamic market, declined by 5.3% to RM8.3 million.

Umar also mentioned that Bursa plans to expand its range of products and solutions, including a Waqf-featured exchange-traded fund and new retail investor access to investment notes via BR Capital.