Bursa posts record first quarter profit of RM70.2mil

Bursa posts record first quarter profit of RM70.2mil

By GOH EE KOON

PETALING JAYA: Bursa Malaysia Bhd has achieved a record quarterly performance since going public in March 2005. It reported a 205% year-on-year increase in net profit to RM70.2mil for its first quarter ended March 31.

In a statement yesterday, the stock exchange said its operating revenue grew by 113% to RM124.3mil, compared with RM58.3mil in the previous corresponding period.

The strong performance was attributed to a buoyant equity market, which traded at a daily average of RM2.8bil, compared with RM1bil for the same period last year. Quarterly velocity hit a high of 68%, and the bullish equity market and volatile trading activities were attributable to the increase in revenue from the equity market.

Following the tone of the equity market and bullish sentiment surrounding crude palm oil (CPO) prices, the derivatives market posted a 120% increase in trading revenue to RM12.9mil. Total contracts grew by 129% to 1.6 million in the first quarter.

KLCI futures traded increased by 171% to 900,000 contracts, while CPO futures traded increased by 104% to 600,000 contracts.


Chief executive officer Datuk Yusli Mohamed Yusoff said: “This (performance) supports our strategic objectives of making the market more attractive to investors by introducing more initiatives in derivatives such as the US dollar CPO contracts and Direct Market Access for derivatives, which will be launched in the second half of this year.”

Listing fees grew by 136% to RM6.4mil in the quarter, due to the revision in listing fees. As at March 31, the total number of listed companies and real estate investment trusts was at 1,035. The growth in listings was also somewhat slowed down by the increasing number of delistings.

In that period, retail participation also grew, increasing to 39%, compared with 34% last year. Yusli said the market's performance was partly driven by sustained foreign and domestic investor interest.

“Bursa Malaysia itself broke trading records recently and we are optimistic that the market outlook will remain competitive,” he added.

The bourse's efforts for the remainder of the year will be geared towards improving market velocity and liquidity by addressing various gaps. Currently, it is working on improving infrastructure and broadening its product base.