Update Bursa's 1Q profit up on higher derivative income

by **Cals** Mon 25 Apr 2016, 18:42

Update

[size=28]Bursa's 1Q profit up on higher derivative income

By Chong Jin Hun / theedgemarkets.com | April 25, 2016 : 2:30 PM MYT

KUALA LUMPUR (April 25): Bursa Malaysia Bhd reported a 6% rise in first quarter net profit from a year earlier, helped mainly by higher derivative-trading income as share-transaction revenue fell.

In a statement on its website today, bourse operator and regulator Bursa Malaysia said net profit rose to RM49.94 million from RM47.06 million. Revenue was higher at RM133.93 million versus RM127.09 million.

Bursa Malaysia said the derivative segment revenue rose 7.4% mainly on higher trading income. The derivative segment includes crude palm oil futures transactions.

In the equities market, Bursa Malaysia said share-transaction revenue fell to RM57.1 million from RM57.5 million. The equities segment was, however, still able to report a 3.7% revenue rise on better results from other components of the segment.

"Listing and issuer services revenue increased by 22.2% to RM13.2 million in 1Q16 compared to 1Q15. The increase was mainly due to the higher initial and additional listing fees, as well as perusal and processing fees, earned from higher number of corporate exercises and initial public offerings (IPOs) in 1Q16," Bursa Malaysia said.

Looking ahead, Bursa Malaysia said it was "cautiously optimistic" on its FY16 financials. The group said it had taken into account the uncertainties in China's economic growth and the slower-than-expected US market recovery.

Bursa Malaysia said it hoped to attract more retail investors into the exchange, which was supported by foreign and local institutional investors.

At 12:30pm today, Bursa Malaysia shares fell three sen or 0.3% to RM8.70 for a market value of RM4.65 billion.

Bursa Malaysia shares had risen 4.19% this year, outperforming the FBM KLCI's 1.19% gain.
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