Bursa Malaysia Posts Net Profit of RM83.3 Million
Sustained financial performance attributed to improved trading activity
Key Financial Highlights
Nine months ended 30 September 2010 against corresponding period
* Net profit of RM83.3 million, 2% increase
* Equities trading revenue, up 11%
* Derivatives trading revenue, down 10%
* Operating expenses, up 9%
* Daily average trading value for equities rose to RM1.43 billion
* IPO listings rose to 19
* Market capitalisation rose to RM1.15 trillion vs. RM910.52 billion
Bursa Malaysia Berhad (Bursa Malaysia) today announced a net profit of RM83.3 million for the nine-month period ended 30 September 2010; a 2% increase compared to the net profit of RM81.3 million for the corresponding period last year.
For the third quarter ended 30 September 2010, Bursa Malaysia registered a net profit of RM27.7 million, 10% lower compared to RM30.8 million recorded in the third quarter of 2009. Overall revenue increased in the third quarter of this year against the corresponding period, whereby trading revenue for the equities and derivatives markets rose by 7% and 5% to RM40.7 million and RM9.6 million respectively.
Bursa Malaysia’s Chief Executive Officer, Dato’ Yusli Mohamed Yusoff said, “We made relatively good progress throughout this year and this is translated to consistent positive financial performance for the Group. Our market has proven its resiliency and our sustainable growth thus far is driven by strong trading value and increased trading activity in our market.”
The performance for the equities market is in line with the improved market sentiment and activity as noted in the nine months ended 30 September 2009. The daily average trading value for the equities market increased to RM1.4 billion in the period under review compared to RM1.2 billion in the same corresponding period. This resulted in the improvement of the trading revenue for the equities market of 11% to RM117.1 million from RM105.4 million for the period ended 30 September 2009. For the period under review, market capitalisation also rose to RM1.15 trillion versus RM910.52 billion in the same corresponding period.
The derivatives market experienced a slight decrease in terms of the number of contracts traded. Total contracts traded dropped by 7% to 4.43 million in the nine month period of this year versus 4.78 million in the same period last year. Consequently, trading revenue for the derivatives market recorded a decline of 10% to RM27.1 million from RM30.3 million last year.
Stable revenue increased by 4% to RM78.4 million in the nine-month period ended 30 September 2010 from RM75.4 million in the same period of 2009. This improvement was attributed to higher listing fees and issue fees as a result of increase in IPOs, structured warrants and secondary issues.
Chart 1: Total revenue
Total expenses were 9% higher at RM141.7 million for the nine month period of 2010. The increase was attributed to higher staff cost due to staff development expenses and remuneration adjustments. In addition, the higher operating expenses were attributed to the accelerated depreciation and write off of Bursa Trade Derivatives and related IT systems following the migration of derivatives products and trading activity onto CME Globex® electronic trading platform in September 2010. These increases were partially offset by decreases in market development expenses and effective optimisation of IT maintenance cost.
Dato’ Yusli concluded, “We need to continue efforts to attract quality listings to our market and we look forward to the imminent listings of the two Petronas subsidiaries. Our listing pipeline has been progressing at an encouraging rate, signaling improved confidence of issuers in the local bourse as a capital raising destination of choice.
“This is also underscored by the recent global recognitions that we received, such as the improved country classification. This development certainly elevates the visibility of our market. Coupled with the recent announcements in the National Budget 2011 to make the market more vibrant, liquid and attractive, we hope to see trading activities and sentiment improve accordingly in the near future.”