Lower stamp duty to raise trading activity

Kenanga Research has kept its financial year 2023 and forecast FY24 earnings for Bursa Malaysia unchanged, despite the expectations of higher average daily trading volumes.

PETALING JAYA: The reduction of the stamp duty rate for securities trading on Bursa Malaysia beginning July will be positive for trading activity, but will not impact the exchange operator’s profit.

Kenanga Research said the decision by the government to lower the stamp duty from 0.15% to 0.1% of contract value will not impact Bursa Malaysia’s income directly, but could encourage trading activity on the exchange.