Bursa Malaysia records highest first-half financial performance since listing in 2005

Bursa Malaysia Berhad has recorded a Profit After Tax and Minority Interest (“PATAMI”) of RM151.0 million for the first half ended June 30 (“1H2020”), a 62.0 percent increase from RM93.2 million reported in the previous corresponding half ended 30 June 2019 (“1H2019”).

The increase in PATAMI is due to higher operating revenue, which increased by 33.6 percent to RM320.7 million from RM240.0 million in 1H2019. Meanwhile, total operating expenses in 1H2020 increased by 3.7 percent to RM127.1 million from RM122.6 million in 1H2019, mainly due to higher staff and technology costs.

This is Bursa Malaysia’s highest first-half financial performance since its listing in 2005.

The Board of Directors approved an interim dividend of 17.0 sen per share for the financial year ending Dec 31 2020, or a dividend payout ratio of 91.1%, which is payable on Aug 26 2020.

Muhamad Umar Swift, chief executive officer said, “I am pleased with our strong first half financial results. Our Annualised ROE and EPS of 39% and 18.7 sen respectively has allowed the Board to declare an interim dividend of 17.0 sen, the highest since listing in 2005.”

The elevated market volatility has resulted in higher trading activities in both the Securities
and Derivatives Markets. However, listing and issuer services revenue saw a slight decline,resulting from the recognition of the 50 percent waiver on annual listing fees for the year 2020 to assist listed issuers overcome the challenges of the Covid-19 pandemic.

Market data revenue continues to grow, increasing by 18.9 percent to RM22.6 million from RM19.0 million in 1H2019, driven by the expansion of market data subscriber base in 1H2020.

For 1H2020, the Securities Market registered a trading revenue of RM188.2 million compared to RM117.8 million in 1H2019, increasing by 59.7 percent as a result of higher Average Daily Trading Value (“ADV”) for Securities Market’s on-market trades.

The broader market is supported by local investors, with higher retail participation during the period. Derivatives Market trading revenue increased by 44.3 percent to RM48.0 million in 1H2020 from RM33.3 million in 1H2019, mainly due to higher number of contracts traded for Crude Palm Oil Futures (“FCPO”) and FTSE Bursa Malaysia KLCI Futures (“FKLI”). Average Daily Contracts (“ADC”) for the Derivatives Market saw an increase of 55.9 percent, with 76,956 contracts in 1H2020 compared to 49,351 contracts in 1H2019.

Conference fees and exhibition-related income saw a decline in 1H2020, due to the cancellation of the Palm and Lauric Oils Price Outlook Conference & Exhibition 2020.

The Islamic Capital Market, Bursa Suq Al-Sila’ (“BSAS”) trading revenue decreased by 17.2 percent to RM6.3 million in 1H2020 from RM7.6 million in 1H2019, despite higher BSAS ADV. This was due to a higher proportion of volume-based pricing trades for the half year period.

Nevertheless, the Exchange continued to grow its base with the onboarding of 14 new participants,five of which are foreign, and is expected to sustain its level of performance through continuous engagement with its participants.

“Malaysia has done well in containing Covid-19. Although uncertainties continue to surround its impact on the economy, we are confident that the stimulus packages will aid in Malaysia’s recovery and maintain the resilience of our markets,” commented Umar.

 

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