Bursa Malaysia’s Q1 net profit jumps 33.6% year-on-year

PETALING JAYA: Bursa Malaysia Bhd posted profit after tax, zakat and minority Interest (Patami) of RM75.0 million for the first quarter ended March 31, 2024 (Q1’24), a 33.6% increase compared to RM56.2 million in the previous corresponding quarter ended March 31, 2023.

The rise in Patami was primarily driven by a 23% increase in the securities market’s operating revenue to RM123.1 million in Q1’24, from RM100 million in Q1’23.

Meanwhile, total operating expenses increased by 8.6% to RM87.1 million in Q1’24 from RM80.2 million in Q1’23, attributed mainly to higher staff costs and technology expenses.

Bursa Malaysia CEO Datuk Muhamad Umar Swift said, “Drawing upon the positive momentum of the past year, we have started the year on a firm footing. The Average Daily Trading Value (ADV) for Securities Market’s On-Market Trades continues to grow, rising by 36.9% to RM2.9 billion from RM2.1 billion in Q1 2023.”

He added that this increase substantially contributed to a higher operating revenue this quarter.

As a multi-asset exchange, Muhamad Umar said, it continues to democratise access and provide more opportunities for all stakeholders.

“Domestic retail investors remain a key segment in driving our marketplace forward, and the exchange will continue its outreach efforts and

improve market ecosystem through initiatives like MyBursa and Bursa Reach,” he said.

For the latest quarter under review, trading velocity experienced an uptick, rising by 8 percentage points to 39% from 31% in Q1’23. Additionally, listing and issuer services grew by 8.9% to RM16.3 million in Q1’24 from RM15 million in Q1’23, while depository services witnessed an 18.3% increase to RM15.5 million from RM13.1 million. respectively.

The derivatives market’s operating revenue rose by 12.7% to RM31.8 million from RM28.3 million in Q1’23. The increase was driven primarily by the rise in average daily contracts (ADC) in both crude palm oil futures and FTSE Bursa Malaysia KLCI Futures, which collectively propelled the derivatives market’s ADC higher by 18% year-on-year to 84,222 contracts in Q1’24. The growth in ADC led to an 18.2% increase in derivatives trading revenue, rising to RM25.4 million in Q1’24 from RM21.5 million in Q1’23.

On the Islamic market front, operating revenue remained stable at RM4.5 million, mirroring the previous corresponding quarter’s performance. Meanwhile, the data business segment demonstrated significant growth, with operating revenue increasing by 21.9% to RM19 million from RM15.6 million in Q1’23.

“While key economic indicators are pointing towards a brighter outlook for the Malaysian economy, the ongoing global and local developments 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,” Muhamad Umar said, adding that Bursa Malaysia is well-positioned to continue developing the marketplace and make further progress on its strategic plans.

“We expect growth momentum in the data business with the Centralised Sustainability Intelligence Platform which will foster environmental, social and governance transparency, targeted to be launched in June 2024. The recently launched SME X Platform will also contribute to this growth, by connecting the small and medium enterprises to capital providers for fundraising,” he said.

As for the Islamic market, Muhamad Umar said there has been strong participation in user registrations of the Bursa Gold Dinar app following its launch on Jan 16.

“We will continue our focus on introducing new value- added features and digital marketing efforts to increase our investor base. We also anticipate sustained trading activity within BSAS, supported by ongoing engagements with both local and foreign participants. Our commitment remains steadfast in expanding the array of syariah-compliant products and solutions, including Islamic social finance offerings, to promote sustainable and responsible investment practices among investors,” said he said.

Barring any unforeseen circumstances, he added, the exchange is cautiously optimistic in meeting all five headline key performance indicators for financial year 2024.