Bursa chairman Tan Sri Abdul Wahid Omar said: “Despite the ongoing health and economic challenges, most capital markets with strong domestic liquidity such as Malaysia have benefited from the increased presence of domestic retail investors."
KUALA LUMPUR: Bursa Malaysia Bhd
posted its highest full year financial results since its listing in 2005 when its net profit doubled to RM377.74mil in FY ended Dec 31, 2020 due to the improved performance in the securities and derivatives markets.
The stock exchange operator announced on Tuesday net profit doubled from RM185.85mil. Its revenue increased by 59% to RM798.97mil from RM502.49mil in FY19.
For the fourth quarter, its net profit jumped by 103% to RM104.85mil from RM45.55mil a year ago, Its revenue increased by 78.3% to RM230.70mil from RM129.33mil. Earnings per share were 13 sen compared with 5.6 sen.
The board of directors approved and declared a final dividend of 26 sen per share and a special dividend of eight sen per share for FY2020, amounting to about RM210.30mil and RM64.70mil, respectively.
This brings the total dividend payout for FY2020 to 51 sen per share, 145% higher than the total dividend of 20.8 sen per share paid in FY19.
On the FY20 results, Bursa said total operating expenses in FY2020increased by 18.5% to RM291.80mil from RM246.20mil in FY19, mainly due to higher staff costs, information technology maintenance costs and professional fees.
Commenting on the FY20 results, Bursa chairman Tan Sri Abdul Wahid Omar said: “Despite the ongoing health and economic challenges, most capital markets with strong domestic liquidity such as Malaysia have benefited from the increased presence of domestic retail investors.
“Aided by the convenience of online broking and conducive low-interest-rate environment, the average daily trading value (ADV) of securities doubled from RM1.93bil in FY19 to RM4.21bil in FY2020.
“Our ability to handle the significant increase in volume and achieve this exceptional financial performance is a testament to the steadfast and unwavering commitment we have made through continued investment in our growth initiatives, ” he said.
Wahid said this has provided a solid foundation, contributing to the resilience of the Malaysian capital market, which has been one of the strongest in Asean.
The FBM KLCI ended the year 2.4% higher at 1,627.21, one of the best performing equities markets in Asean, reflecting the confidence and sentiment of investors in our market, he added.
Bursa CEO Datuk Muhamad Umar Swift said the full-year financial result reflects the strength of its core business in capitalising on opportunities which emerged within our capital market in 2020.
“Retail investors have had a positive impact on improving liquidity and depth. In FY2020, retail ADV had increased by 236% to 1.6 billion, the highest retail ADV in Bursa Malaysia’s history.
“Improved financial literacy among retail investors demonstrates the increased effectiveness of our outreach programme in recent years.
“Aside to that, 65% of the total CDS accounts opened were millennials (ages 25-40 years). The increase of millennial investors is a positive development for the long-term sustainability of the market, as they are key drivers of socially responsible investing, ” he said.
