Bursa Malaysia records net profit of RM76.25mil in 2Q, declares 15c dividend/share

KUALA LUMPUR: The domestic market could be poised to benefit from an anticipated reversal of international investment flow into emerging markets in the second half of 2023,” said Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar following the release of the company’s second quarter results.

The stock exchange operator remains optimistic of prospects, he said, while adding that the domestic market demand remained resilient while the Exchange is implementing multi-faceted strategies across its markets.

In the second quarter of its financial year ended June 30, 2023, Bursa Malaysia posted a net profit of RM76.25mil, up from RM59.47mil in the previous corresponding quarter, for an earnings per share of 9.4 sen.

Revenue during the quarter was down to RM144.6mil from RM151.89mil in the comparative quarter.

The board of directors declared an interim dividend of 15 sen a share, which amounts to about RM121.4mil for a payout ratio of 91.7%.

For the first half of the year, cumulative net profit was RM132.42mil compared to RM127.44mil in 1H22, on revenue of RM301.1mil versus RM317.19mil previously.

According to Bursa, the increase in profit was owing to an 8.5% decline in operating expenses to RM131.1mil in 1H23 from RM143.2mil in 1H22, mainly on the back of a one-off reversal in provisions.

Year-to-date, the securities market reported a trading revenue of RM126mil, which was 14.4% lower year-on-year (y-o-y).

Bursa said the average daily trading value of the securities market’s on-market trades (OMT) and direct business trades (DBT) in 1H23 stood at RM2.09bil against RM2.46bil in 1H22.

Trading velocity in 1H23 declined five percentage points to 28% from 33% in 1H22.

Notably, funds raised through initial public offerings (IPO) rose 8.9% to RM2.3bil from RM2.1bil in 1H22.

The trading revenue of derivatives fell 6.9% to RM44.5mil in 1H23 from RM47.7mil in 1H22, mainly owing to lower collateral management feed earned and the lower number of crude palm oil futures contracts.

On the Islamic market, a surge in Bursa Suq Al-Sila’ trading led to a 15.5% increase in trading revenue to RM8.8mil, up from RM7.6mil in 1H22.

Non-trading revenue grew 3.2% to RM110.3mil on growth in the data business, whih recorded a 5.6% increase in operating revenue to RM32.9mil.

In the same statement, Bursa Malaysia CEO Datuk Muhamad Umar Swift said the stock exchange operator is cautiously optimistic in meeting its headline key performance indicators for the year.

“As we navigate these uncertain times, we are encouraged by potential uplifts, arising from the growth potential presented by the relatively attractive valuation of our equity market and anticipated stabilisation of the global interest rate environment.

“These factors, coupled with the recently reduced stamp duty rate on trading of shares, are poised to attract both local and international investors,” he added.