Bursa Q2 income retreats 14.5%

  • Business
  • Friday, 18 Jul 2014

KUALA LUMPUR: BURSA MALAYSIA BHD’s profit after tax and minority interest dropped 14.5% to RM46.85mil in the second quarter ended June 30, from RM54.82mil a year ago due to lower revenue from its derivatives and securities markets amid higher expenses.

Revenue also fell 5.5% to RM123.15mil from RM130.35mil.

On a half yearly basis, the stock exchange’s earnings were 1% lower at RM92mil while its operating revenue rose 3% to RM230.6mil, driven by higher retail participation.

It achieved its highest annualised return on equity since 2010 for the first half of this year, supported by the retail participation which grew from 22% in the same period last year to 25%.

Bursa Malaysia has announced an interim dividend of 16 sen with an additional 20 sen special dividend.

CEO Datuk Tajuddin Atan said the exchange would continue to focus on its key growth drivers, - retail participation in average daily trading volume (ADV) for the securities market, Bursa Suq Al-Sila and average daily trading contracts (ADC) traded for the derivatives market.

“All three markets recorded growth as a result of higher trading participation due to our targeted outreach events and activities specifically for equities and derivatives,” he said at the results briefing yesterday.

The exchange has been courting and educating the younger working group nationwide to invest in both equities and derivatives.

Cost-to-income ratio remained manageable, Tajuddin said, as the bourse continued to monitor expenses.

“The higher expenses in this period was largely due to an increase in staff cost as we were increasing our headcount. Last year, we faced difficulty in hiring thus we revised the staff compensation to recruit new talent,” he said.

On upcoming initial public offerings (IPOs), he said there were two in the pipeline, Sasbadi Holdings Bhd and Heng Huat Resources Group Bhd.

Both are slated for listing next week.

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