THE local capital market continued to demonstrate resilience in the first half of 2026, with Bursa Malaysia delivering stronger earnings despite a challenging global investment environment and persistent foreign fund outflows.
BURSA Malaysia reported a net profit of RM144.6 mil. Earnings increased year-on-year (YoY), supported by stronger contributions from both trading and non-trading revenue streams.
Consequently, the first half of the financial year 2026 (1HFY26) return on equity (ROE) improved to 35%, up from 30% in the corresponding period last year.
On a quarter-on-quarter (QoQ) basis, however, net profit declined 1.4%, mainly due to a 1.5% reduction in total operating revenue. Yearly, Bursa’s 1HFY26 operating revenue grew by 19.6% to RM411.7 mil on the back of stronger trading (20.7% YoY) and non-trading (17.6% YoY) revenues.
Securities Trading Revenue surged 26.9% YoY to RM185.7 mil vs RM146.4 mil a year ago due to higher Average Daily Value (ADV).
The Derivatives Trading Revenue rose by 5.2% YoY, while Bursa Suq Al-Sila’ trading revenue improved by 7.9% YoY to RM10.3 mil from RM9.6 mil a year ago.
Meanwhile, non-trading revenue recorded strong YoY growth, led by Listing & Issuer Services, which surged 64.1% YoY, driven by revised listing fees and a higher number of structured warrants listed.
Trading velocity climbed to 39% vs 32% in 2025. Elsewhere, the market capitalisation grew slightly to RM2,117 bil from RM1,904 bil in 1H2025.
Year-to-date, total funds raised surged to RM7.0 bil from RM5.6 bil a year ago.
Funds raised from new listings improved to RM5.4 bil (1HFY25: RM4.0 bil), while funds raised in the secondary market were steady at RM1.6 bil.
Foreign fund flows turned negative in May and June, resulting in total net foreign outflows (TNFO) of RM2.8 bil in 1HFY26.
Bursa is largely on track to achieve its key 2026 targets, underpinned by strong 1H performance.
Among its targets, Bursa delivered an ROE of 35% in 1H26, well above its guided range of 27% to 30%.
However, management has maintained its guidance prudently given the possibility of softer market conditions and trading activity in 2H.
Non-trading revenue also grew 17.6% YoY, exceeding the target of more than 10%, supported mainly by a 64.1% increase in listing and issuer services fees following revised fee structures.
Reflecting strong market momentum, Bursa raised its IPO market capitalisation target to RM34 bil from RM28 bil after generating RM26.1 bil from 36 IPOs in 1H26.
Looking ahead, management remains “prudently optimistic” on its 2H26 earnings outlook, supported by resilient domestic economic fundamentals and a robust strategic pipeline.—July 31, 2026
Main image: leapconcept.my
