PETALING JAYA: Bursa Malaysia Bhd
’s total market capitalisation rose 11.2% year-on-year to RM2.12 trillion as at end-June, despite heightened global market volatility, driven largely by an increase in the Main Market’s market capitalisation to RM2.04 trillion from RM1.84 trillion a year earlier.
The exchange expects a couple of Main Market initial public offerings (IPOs) in the second half of financial year 2026 (2H26), backed by an encouraging listing pipeline that prompted it to raise its full-year IPO market capitalisation target to RM34bil from RM28bil previously.
The higher target follows a strong first half, with 36 IPOs generating RM26.1bil in market capitalisation.
Chief executive officer Datuk Fad’l Mohamed said the upward revision reflects an encouraging IPO pipeline.
“The pipeline is very encouraging and promising, both in terms of large caps and also our ACE Market, our mid-cap companies,” he told reporters during a press conference on the the group’s 1H26 financial performance. “We hope to see a couple of large IPOs in 2H.”
He said the higher target is supported by strong issuer interest across sectors including healthcare, consumer and technology, alongside sustained participation from both retail and institutional investors.
Fad’l stressed that Bursa Malaysia’s priority extends beyond increasing the number of listings.
“The key for us is not just about the number of listings but the quality of companies that we bring to the market,” he said.
The 36 IPOs completed in the first half of 2026 raised RM5.4bil in proceeds and comprised five Main Market, 25 ACE Market and six LEAP Market listings. Fad’l claimed that Bursa Malaysia ranked first in Asean by both the number of IPOs and funds raised during the period.
The exchange’s stronger listing activity contributed to improved financial performance in the second quarter ended June 30, 2026, with net profit rising 25.9% year-on-year to RM71.78mil from RM57.06mil, while revenue increased 22.3% to RM210.97mil from RM172.58mil.
Meanwhile, for 1H26, net profit grew 15.2% to RM144.61mil from RM125.48mil in 1H25, as revenue climbed 19.1% to RM425.04mil from RM356.96mil previously, driven by higher securities trading activity and increased listing fees.
Trading-related revenue increased 20.7% year-on-year to RM258.2mil, accounting for 63% of total revenue, while non-trading revenue rose 17.6% to RM153.5mil, contributing the remaining 37%.
In the securities market, average daily trading value rose 35% year-on-year to RM3.32bil from RM2.46bil, while average daily contracts in the derivatives market increased 9.9% to 106,518, driven mainly by higher trading in crude palm oil futures, which accounted for 84% of total contracts traded.
Fad’l said the performance reflected strong market activity, healthy fundraising momentum and continued execution of Bursa Malaysia’s strategic priorities.
“Overall, our first-half performance demonstrates resilient investor participation, healthy fundraising activity and continued confidence in Bursa Malaysia as a platform for capital raising and investment,” he said.
Operating expenses in 1H26, however, rose 21% year-on-year to RM229mil, mainly due to investments in talent and technology as well as new regulatory fees.
To note, effective Jan 1, 2026, Bursa Malaysia began paying a fixed annual regulatory fee of RM28mil to the Securities Commission, alongside a 37.5% derivatives levy on trading and clearing fees and revised listing fees.
Chief financial officer Azizan Abd Aziz said the higher costs were anticipated and had been factored into the group’s budget.
“It is expected and budgeted,” he said, adding that Bursa Malaysia’s cost-to-income ratio remained broadly stable at 54%.
Asked whether Bursa Malaysia was maintaining its full-year profit guidance despite the uncertain macroeconomic environment, Azizan said: “Yes, we are maintaining our full-year profit guidance. That’s non-negotiable.”
Fad’l said Bursa Malaysia remained on track to meet its broader objectives for the year despite geopolitical and macroeconomic uncertainties.
These include delivering a return on equity of 27% to 30%, growing non-trading revenue by more than 10% from financial year 2025 (FY25), achieving RM34bil in IPO market capitalisation and reducing Scope 1 and Scope 2 carbon emissions by at least 25% from the FY22 baseline.
“Overall, while geopolitical and macroeconomic uncertainties remain part of the landscape, we believe Malaysia is well positioned to navigate these challenges supported by resilient domestic fundamentals and healthy capital market activity,” he said.
Despite the uncertain external environment, he noted that foreign investors turned net buyers in July, with inflows amounting to RM296mil as of July 27, particularly into defensive sectors such as banking and utilities.
This follows a net foreign outflow of RM2.8bil recorded in the first half.
Still, Fad’l said foreign shareholding in Bursa Malaysia has remained stable at around 19% over the past three months despite volatile global markets.
Bursa Malaysia has declared an interim dividend of 16.5 sen per share for the FY26, amounting to approximately RM133.5mil, representing a 92% payout ratio.
Based on the share price of RM8.50 on June 30, 2026, Fad’l said the interim dividend represents a dividend yield of 3.9%.
Meanwhile, Fad’l said Bursa Malaysia has begun engaging with listed companies under the MY Value Up programme, with the initial response proving encouraging.
He said interest has been strong despite the initiative being voluntary.
“We see a lot of companies showing interest to participate in this programme, though voluntary at this stage. Bursa Malaysia hopes to receive participating companies’ submissions by the end of the year, after which it will continue engaging them to refine their value creation plans.”
He said momentum is expected to build in the first half of next year.
On incentives, Fad’l said Bursa Malaysia is exploring possible measures to encourage participation, although the priority remains ensuring companies demonstrate genuine commitment to long-term value creation.
He said Bursa Malaysia itself will also participate in the initiative by incorporating its long-term value creation plans into its 2027 to 2030 strategic roadmap, which is expected to be launched in the fourth quarter.
Separately, Fad’l welcomed FTSE Russell’s proposal to expand the FBM KLCI to 50 constituents from the current 30, saying the move would provide broader representation of the Malaysian equity market.
He said the current benchmark represents about 59% of the Main Market’s total market capitalisation, compared with around 70% under the proposed 50-stock index.
The expansion would also reduce the index’s concentration in financial services, which currently accounts for about 43% of the FBM KLCI, while increasing representation from sectors such as technology, energy and real estate investment trusts, he added.
“It gives a more balanced, representative benchmark while preserving the KLCI’s role as the premier market benchmark,” he noted.
Fad’l added that the proposal has received broad support from key stakeholders, particularly institutional and domestic investors.
