BURSA Malaysia Bhd’s profit after tax and minority interest (PATAMI) surged 38.2% to RM64.7 mil in the first quarter ended March 31, 2020 (1Q20) from RM46.9 mil reported in the same period last year.
In a statement filed with the stock exchange, Bursa said the increase in PATAMI was primarily due to a 19.8% higher operating revenue of RM145.5 mil.
Total revenue rose to RM150.8 mil in 1Q20 from RM126.5 mil previously.
For the quarter under review, the securities market registered a trading revenue of RM78.1 mil, up 32.2% from RM59.0 mil in the previous corresponding quarter.
“The increase was mainly due to higher average daily trading value (ADV) for on-market trades in 1Q20,” it said, adding that the broader market was well supported by local investors, both institutional and retail, recording a net buy position in the quarter.
On the derivatives market, Bursa said its trading revenue increased 63.5% to RM26.7 mil in 1Q20 from RM16.4 mil in 1Q19, mainly due to 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 quarter under review.
Average daily contracts for the derivatives market soared 80.7% to 85,578 contracts in 1Q20 versus 47,359 contracts in 1Q19.
Aside from trading revenue, the exchange operator said conference fees and exhibition-related income decreased in 1Q20, mainly due to the postponement of the Palm and Lauric Oils Price Outlook Conference & Exhibition 2020.
As for the Islamic capital market, it said intense competition and slower economic activities had resulted in trading revenue of Bursa Suq Al-Sila’ (BSAS) decreasing 25.2% to RM2.9 mil in 1Q20 from RM3.9 mil in 1Q19.
“The exchange, nevertheless, has onboarded nine new participants for BSAS, two of which are foreign, and is expected to sustain its level of activities through continuous engagement with participants to increase trading activities,” it said.
Bursa Malaysia CEO Datuk Muhamad Umar Swift said the Covid-19 pandemic has a profound impact across all industries.
“The exchange continued to ensure orderly operations of our 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.”
Muhamad Umar said as Bursa continued through this uncertain and challenging environment, it would adjust its approach accordingly.
“Appropriate measures will be introduced as required to ease the financial burden of the capital market participants and help towards a speedier market recovery,” he added. — April 2020, Bernama
