KUALA LUMPUR: Bursa Malaysia's net profit increased by 159% to RM121.93mil in the third quarter ended Sept 30,2020, propelled by strong investor participation across segments led by domestic institutions and retail.
The stock exchange operator said on Tuesday the net profit was RM47.10mil a year ago. Its revenue increased by 93.8% to RM237.74mil from RM121.67mil. Earnings per share were 15.10 sen compared with 5.8 sen.
In the nine months, its net profit increased by 94.5% to RM272.89mil from RM140.29mil in the previous corresponding period due to higher operating revenue. Its revenue recorded a 52.2% increase to RM568.27mil from RM373.16mil.
Total operating expenses in 9M2020 increased by 11.1% to RM200.4mil from RM180.3mil in 9M2019 due to higher staff costs, professional fees and information technology maintenance cost, it said.
Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said: “Against the backdrop of unprecedented circumstances, the exchange delivered an exceptional 9M2020 financial performance, recording the highest ever nine-month PATAMI since listing in 2005.”
He said the on-going developments with regards to Covid-19, low-interest-rate environment, the Malaysian government’s stimulus packages and the gradual re-opening of the economy continue to support investor participation across segments led by domestic institutions and retail.
Umar said investor participation in the Securities Market continued to increase, with average daily trading value (ADV) growing by 101.8% to RM4bil in 9M2020 compared to RM2bil a year ago.
As a result, securities trading revenue increased by 101.1% to RM349.2mil in 9M2020 from RM173.6mil in 9M2019.
The additional number of trading days and the higher effective clearing fee in 9M2020 also contributed to the increase in trading revenue.
Trading velocity increased by 34 percentage points to 62% compared to a year ago.Non-trading revenue increased by 7.0% to RM110.9mil from RM103.6mil in the previous corresponding period.
This was contributed by higher market data revenue which increased by 20.4% to RM26.7mil in 9M2020 from RM22.2mil a year ago, underpinned by the rise in the number of new subscribers.
Depository services revenue also increased by 9.3% to RM34.4mil in 9M2020 from RM31.5mil a year ago which was due to higher record of depositors fees and account opening fees earned.
He said the exchange will continue to build on its data-related offerings to improve non-trading revenue and ensure the long-term resilience of earnings in all market conditions.
Derivatives Market trading revenue increased by 33.8% to RM69.2mil in 9M2020 from RM51.7mil a year ago, mainly due to higher number of contracts traded for crude palm oil futures (FCPO) and FTSE Bursa Malaysia KLCI Futures (FKLI).
Total average daily contracts (ADC) for the Derivatives Market increased by 41.3% to 74,408 contracts in 9M2020 compared to 52,644 contracts a year ago.
As for the Islamic Capital Market, trading revenue for Bursa Suq Al-Sila’ (BSAS) in 9M2020 decreased by 13.5% to RM9.6mil from RM11.1 million in 9M2019 despite the growth in ADV by 3.0% to RM32.5 billion in 9M2020.
This was mainly due to higher trades under the volume-based pricing scheme that attracts a lower fee. Trading on BSAS is expected to sustain for the rest of the year supported by the increase in foreign participation. “
Umar said while key economic indicators are pointing towards an improving outlook for the Malaysian economy, the on-going developments of the Covid-19 pandemic will continue to influence the volatility and performance of the Securities and Derivatives markets.
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