PETALING JAYA: Bursa Malaysia Bhd’s net profit in the first quarter ended March 31 rose by 38.1% to RM64.73mil from RM46.85mil a year ago, boosted by higher operating revenue.
Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said in a statement yesterday that amidst the exceptionally volatile and uncertain market environment, there were higher trading activities in bot the securities and derivatives markets during the quarter.
The higher trading activities saw its revenue increase by 19.1% to RM150.75mil from RM126.53mil a year ago.
Total operating expenses rose by 2.4% to RM63.5mil from RM62.0mil a year ago. Earnings per share were eight sen compared with 5.80 sen.
Umar Swift said the Covid-19 pandemic has had a profound impact across all industries and this was also reflected in the decline in the market capitalisation as at March 31 to RM1.4 trillion, down by 20.3% from a year ago.
However, he said the exchange continued to ensure orderly operations of its market to preserve the flows of capital in our economy, as well as to aid market participants in managing potential risks and opportunities they may face.
“Amidst the exceptionally volatile and uncertain market environment, we saw higher trading activities in both the securities and derivatives markets.
“Our derivative products have served as an efficient price discovery and hedging instrument during this volatile period. As a testament, derivatives market registered several new highs in trading volume and open interest in 1Q 2020, ” he said.
Umar said the securities market registered trading revenue rose by 32.3% to RM78.10mil from RM59mil a year ago due to higher average daily trading value (ADV) for the on-market trades in the first quarter.
“The broader market is well supported by our local investors, both institutional and retail, recording net buy position in Q1,2020, ” he said.
As for the derivatives market, trading revenue increased by 63.5% to RM26.70mil from RM16.40mil a year ago.
Driving the strong increase were the higher number of contracts traded for crude palm oil futures (FCPO)
and FTSE Bursa Malaysia KLCI Futures (FKLI), as well as higher number of trading days in the current
quarter under review.
However, for the Islamic Capital Market, Bursa Suq Al-Sila’, intense competition and slower economic
activities saw trading revenue fall by 25.2% to RM2.90mil in Q1,2020 from RM3.90mil a year ago.
Umar said due to the uncertain and challenging environment, the exchange would introduce
appropriate measures to ease the financial burden of the capital market participants and help
speedier market recovery.
However, he said the exchange remained confident in its strategy to enhance market attractiveness
and vibrancy including efforts to broaden the product and service offerings, as well as initiatives to
strengthen its ecosystem.
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