Bursa Malaysia Announces RM64.7 Million Profit After Tax And Minority Interest For The First Quarter Of 2020

Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) recorded a Profit After Tax and Minority Interest (“PATAMI”) of RM64.7 million for the first quarter ended 31 March 2020 (“1Q2020”), a 38.2% increase from RM46.9 million reported in the previous corresponding quarter ended 31 March 2019 (“1Q2019”). The increase in PATAMI is primarily due to higher operating revenue by 19.8% to RM145.5 million from 1Q2019. Meanwhile, total operating expenses in 1Q2020 increased by 2.4% to RM63.5 million from RM62.0 million in 1Q2019.

Bursa Malaysia Chief Executive Officer, Datuk Muhamad Umar Swift said, “The COVID-19 pandemic has 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. Amidst the exceptionally volatile and uncertain market environment, we saw higher trading activities in both the Securities and Derivatives Markets. Our derivative products have served as an efficient price discovery and hedging instrument during this volatile period. As a testament, Derivatives Market registered several new highs in trading volume and open interest in 1Q 2020.”

For the current quarter under review, Securities Market registered trading revenue of RM78.1 million compared to RM59.0 million in the previous corresponding quarter, increased by 32.2% as a result of higher Average Daily Trading Value (“ADV”) for Securities Market’s on-market trades in 1Q2020. The broader market is well supported by our local investors, both institutional and retail, recording net buy position in 1Q2020.

Derivatives Market trading revenue increased by 63.5% to RM26.7 million in 1Q2020 from RM16.4 million in 1Q2019, 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 current quarter under review. Average Daily Contracts (“ADC”) for the Derivatives Market saw an increase of 80.7%, with 85,578 contracts in 1Q2020 compared to 47,359 contracts in 1Q2019. Aside from trading revenue, conference fees and exhibition-related income decreased in 1Q2020, mainly due to the postponement of the Palm and Lauric Oils Price Outlook Conference & Exhibition 2020.

As for the Islamic Capital Market, Bursa Suq Al-Sila’ (“BSAS”), intense competition and slower economic activities have resulted in trading revenue decreasing by 25.2% to RM2.9 million in 1Q2020 from RM3.9 million in 1Q2019. The Exchange, nevertheless, onboarded nine new participants for BSAS, two of which are foreign, and is expected to sustain its level of activities through continuous engagement with its participants to increase trading activities.

Datuk Umar added, “As we continue through this uncertain and challenging environment, we will adjust our approach accordingly. Appropriate measures will be introduced as required to ease the financial burden of the capital market participants and help speedier market recovery. We remain confident in our strategy to enhance market attractiveness and vibrancy through initiatives that we have in place that includes efforts to broaden our product and service offerings, as well as initiatives to strengthen our ecosystem.”

The financial results for 1Q2020 are available on Bursa Malaysia’s website at www.bursamalaysia.com