PETALING JAYA: Bursa Malaysia Bhd’s net profit rose 38.2% to RM68.73 million in the first quarter ended March 31, 2020 (Q1’20) compared with RM46.86 million in the corresponding period of the previous year, attributed to a higher revenue thanks to the growth in the securities market.
Revenue for the period stood at RM150.75 million, a 19.1% improvement from RM126.53 million reported previously.
Its CEO Datuk Muhamad Umar Swift said the Covid-19 pandemic has affected all industries and the exchange continued to ensure orderly operations of its market to preserve the economy’s capital flows and to aid market participants in managing potential risks and opportunities.
“Amid the exceptionally volatile and uncertain market environment, we saw higher trading activities in both the securities and derivatives markets,” he said in a statement.
Umar said its derivative products have served as an efficient price discovery and hedging instrument during this volatile period, adding that the derivative market registered new highs in trading volume and open interest in Q1’20.
During the quarter, the securities market trading revenue rose 32.2% to RM78.1 million from RM59.0 million reported in the same quarter of the previous year, as a result of a higher average daily trading revenue.
It noted that the broader market is supported by local investors, both institutional and retail, recording a net buy position in Q1’20.
Meanwhile, the derivatives market trading revenue jumped 63.5% to RM26.7 million in the quarter from a trading revenue of RM16.4 million reported previously, mainly due to higher number of contracts traded for Crude Palm Oil Futures (and FTSE Bursa Malaysia KLCI Futures, as well as higher number of trading days.
On the other hand, Bursa revealed that conference fees and exhibition-related income decreased in Q1’20, mainly due to the postponement of the Palm and Lauric Oils Price Outlook Conference & Exhibition 2020.
Its Islamic capital market Bursa Suq Al-Sila’ (BSAS) reported a 25.2% decline in trading revenue to RM2.9 million from RM3.9 million in the previous quarter due to intense competition and slower economic activities.
Nevertheless, the exchange has reported that it onboarded nine new participants for BSAS, two of which are foreign, and is expected to sustain its level of activities through continuous engagement with its participants to increase trading activities.
On its outlook, Umar said it will adjust its approach as it continues through this uncertain and challenging environment. He shared that appropriate measures will be introduced as required to ease the financial burden of the capital market participants and help speedier market recovery.
“We remain confident in our strategy to enhance market attractiveness and vibrancy through initiatives that we have in place that includes efforts to broaden our product and service offerings, as well as initiatives to strengthen our ecosystem,” said Umar.
source https://www.thesundaily.my/business/bursa-malaysia-net-profit-up-382-in-q1-20-LC2352481
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