Highlight Bursa 2Q profit falls 15% on year, pays 36 sen dividends

by **Cals** Fri 18 Jul 2014, 01:06

Highlight Bursa 2Q profit falls 15% on year, pays 36 sen dividends

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 17 July 2014 13:56

KUALA LUMPUR (July 17): Bursa Malaysia Bhd reported a 15% fall in second quarter net profit from a year earlier as securities and derivative income declined. Higher staff cost and information technology maintenance expenses also curbed profit growth.

In a statement on its website, bourse operator and regulator Bursa said net profit fell to RM46.85 million in the quarter ended June 30 this year (2QFY14) from RM54.82 million. Revenue dropped to RM123.15 million from RM130.35 million.

"The (expenses) increase in 2Q14 was mainly due to higher staff costs and information technology maintenance. The increase is partially offset by lower depreciation," Bursa said.

Cumulative first-half net profit fell to RM92 million from RM93.02 million a year earlier. Revenue, however, rose to RM246.32 million from RM240.79 million.

Despite the lower 2QFY14 profit, Bursa said it planned to pay total dividends of 36 sen a share during the quarter.

The dividends comprise an interim payout of 16 sen and a special portion of 20 sen.

Looking ahead, Bursa said the recent hike in Malaysia's overnight policy rate and and ample financial liquidity might lure more foreign investors into the domestic stock market.

Bursa also anticipates that local institutional investors will continue to support the domestic market.

"We remain focused on developing our securities, derivatives and Islamic markets, despite the challenging environment, to ensure sustainable performance," Bursa said.