Update Bursa Malaysia 3Q net profit up 27% yoy on buoyant securities market

by **Cals** Thu 24 Oct 2013, 00:47

Update Bursa Malaysia 3Q net profit up 27% yoy on buoyant securities market

Business & Markets 2013

Written by Cynthia Blemin of theedgemalaysia.com

Wednesday, 23 October 2013 19:00

KUALA LUMPUR (Oct 23): Bursa Malaysia Bhd’s net profit rose 27% to RM46.2 million in the third quarter ended September 30, 2013, from RM36.5 million a year ago due to a buoyant securities market.

In an announcement today, the stock exchange operator said revenue for the quarter stood at RM120.28 million, or 14.4% higher than RM105.11 million a year ago.

The regulator said the securities market recorded a segment profit of RM68.7 million in 3Q13, an increase of 24% compared to RM55.4 million in 3Q12.

It noted that the operating revenue for the securities market for 3Q13 was RM88 million, representing an increase of 18% compared to RM74.3 million in 3Q12.

The third quarter also saw higher trades following the conclusion of the Malaysian General Elections in May 2013 and volatilily caused by uncertainty in global environment in 3Q13, it added.

The derivatives market's segment profit was fairly stable at RM10.6 million in 3Q13 and 3Q12, it said.

Operating revenue for the derivatives market for 3Q13 was RM20.2 million, representing an increase of 10% compared to RM18.3 million in 3Q12, it added.

The increase came mainly from trading revenue, it pointed out, stating that 3Q13 saw higher trades as a result of higher foreign participation.

It noted that daily average contracts were 45,700 in 3Q13 compared to 42,234 in 3Q12.

For the nine months to September 30, the operator’s revenue increased 12.7% to RM361.07 million compared with RM320.25 million a year ago while net profit rose 21.2% to RM139.23 million from RM114.84 million.

Bursa Malaysia’s chief executive officer Datuk Tajuddin Atan said its total operating revenue was up 14% to RM335.9 million attributable largely to an increase in the securities trading revenue.

“For the period under review, trading revenue from the securities market registered double digit growth of 21% bringing the current total to RM166.9 million.

“The improved performance is derived from a higher average daily trading value of RM2.1 billion for securities market, an increase of 20% from RM1.7 billion for the corresponding period,” he added.

He opined that the interest and inflows is a reflection of Malaysia’s capital market resilience.

Moving forward, the group expects the global economic conditions and events to remain challenging in the fourth quarter of the year.

It noted that Malaysia's economy is however expected to remain resilient, supported by its strong domestic demand and public spending.

“The trading momentum in the securities market has been driven by uncertainty in the global environment.

“Interest on the securities market will continue to be affected by global events and domestic developments,” it opined.

The regulator said the derivatives market is expected to continue to be active, as a result of the volatility and uncertainty in the global commodities and securities markets for the balance of the year.

It will continue to market and educate intermediaries and investors of its products and services to attract greater market participation, it added.

The exchange will also continue its efforts to make the markets more accessible and attractive for both market participants and investors, it noted.

“Barring any unforeseen circumstances, we expect our financial performance this year to improve compared to the previous year,” it opined.