Bursa Malaysia Berhad announced a Profit After Tax, Zakat and Minority Interest of RM132.4 million for the first half of the year ended 30 June 2023. This represents a 3.9% growth from the RM127.4 million PATAMI recorded against the corresponding period of the previous year ended 30 June 2022.
The Exchange attributed the increase to a decline in operating expenses of 8.5% to RM131.1 million in 1H2023 from RM143.2 million in 1H2022, mainly due to a one-off reversal of provision.
The Board of Directors had also approved and declared an interim dividend of 15 sen per share for the financial year ended 31 December 2023 amounting to approximately RM121.4 million, representing a payout ratio of 91.7%.
“In light of the World Bank’s moderate 2023 global GDP growth projection of 2.1% and the anticipated modest 4.5% growth of the Malaysian economy for 2023 relative to 2022, we are cognisant of the challenging global financial landscape marked by intensified risks and subdued external demands. Nevertheless, Bursa Malaysia remains optimistic, backed by the resilience of our domestic market demand, the anticipated reversal of international investment flow back to emerging markets in the second half of 2023 and the multi-faceted strategies that the Exchange is implementing across its markets,” said Tan Sri Abdul Wahid Omar, Chairman, Bursa Malaysia.
“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,” added Datuk Muhamad Umar Swift, Chief Executive Officer, Bursa Malaysia.
For 1H2023 under review, the Securities Market reported a trading revenue of RM126.0 million, a decrease of 14.4% compared to RM147.2 million in 1H2022. This was due to lower Average Daily Trading Value (“ADV”) for Securities Market’s On-Market Trades (“OMT”) and Direct Business Trades (“DBT”) in 1H2023, standing at RM2.09 billion against RM2.46 billion
in 1H2022. Trading velocity in 1H2023 declined by 5 percentage points to 28% from 33% in 1H2022. Notably, funds raised through Initial Public Offerings (“IPOs”) rose by 8.9% to RM2.3 billion from RM2.1 billion in 1H2022.
Total derivatives trading revenue decreased by 6.9% to RM44.5 million in 1H2023 from RM47.7 million in 1H2022, mainly due to lower collateral management fees earned and lower number of Crude Palm Oil Futures Contract (“FCPO”) contracts traded in 1H2023. However, despite the trading revenue decline, the Palm and Lauric Oils Price Outlook Conference &
Exhibition (“POC”) attracted a notable growth in participants in 1H2023, leading to increased conference fees and exhibition-related income.
As for the Islamic Market, a surge in trading activity in BSAS led to a 15.5% increase in trading revenue to RM8.8 million in 1H2023, up from RM7.6 million in 1H2022. Bursa Malaysia continues to focus on developing new Shariah-compliant investment instruments to cater to investors’ needs, including sustainable and responsible investments, waqf-featured products, and Bursa Gold Dinar.
Meanwhile, non-trading revenue increased by 3.2% to RM110.3 million. This was driven predominantly by growth in the Data Business, which recorded operating revenue of RM32.9 million, an increase of 5.6% in comparison to the RM31.2 million generated in 1H2022.
