Bursa Malaysia’s Chief Executive Officer, Yusli Mohamed Yusoff said, ''We are pleased with our strong results thus far, and we are confident that the exchange is well-positioned for continued growth. The steady financial performance is borne out by our many efforts such as enhancing the quality of markets, growing our investor base and improving operational efficiencies as well as the cooperation and support that we received from all stakeholders. With positive sentiment and progress of some of our key initiatives such as the FTSE-Bursa Malaysia equity indices and the Regulated Short Selling and Stock Borrowing and Lending (RSS/SBL), coupled with the Government’s roadmap for the Ninth Malaysian Plan, we hope to see greater trading activity moving forward.”
Bursa Malaysia has also introduced Bursa Station, a powerful, internet-based real-time market data tool and analytical software specifically targeted to retail investors.
Bursa Malaysia’s operating revenue for the half year ended 30 June 2006 grew by 28.3% to RM127.8 million from RM99.6 million in the same period last year. This growth is attributed to higher trading revenue from equity and derivatives markets recorded at RM87.3 million in the period under review. Trading revenue and stable revenue accounted for 68.3% and 29.4% of operating revenue respectively compared to 59.5% and 38.3% in first half of 2005.
Total trading value in the equity market (on-market and direct business) was higher at RM132.2 billion, compared to RM110.7 billion in first half of 2005. As a result, revenue from clearing fees and System on Computerised Order Routing and Execution (SCORE) fees increased by 54.7% and 26.5% correspondingly. Impact of the increase in the clearing fee cap from RM200 to RM500 per contract in October 2005, as evidenced by the increase in the effective gross clearing fee for on-market trades to 3.08 basis points from 2.51 basis points also contributed to the higher clearing fee revenue. The number of derivative contracts traded recorded an improvement with a total of 1.6 million contracts traded in the period under review compared to 1.2 million in the previous corresponding period. This resulted in the increase in derivatives clearing and trading revenue by 30.0% and 38.9% to RM2.6 million and RM10.0 million respectively.
Operating expenses on the other hand saw a marginal increase of 1.1% to RM71.5 million. Depreciation and IT maintenance expenses increased but the increases were mitigated by decreases in manpower, building maintenance and other operating expenses.
Bursa Malaysia also announced an interim dividend payout of 85.4% of the company’s net profit for the period ended 30 June 2006, 10.4% higher than the policy of minimum 75.0% dividend payout. The payout is equivalent to a gross dividend of 12.5 sen per share, compared to 10.0 sen for the same period last year. The interim dividend will be paid out to its shareholders by end-August 2006.
Commenting on the progress of the exchange’s headline KPIs, Yusli said that Bursa Malaysia is on track to meet its annual Return-on-equity (ROE) target of 9.1%, as the annualised ROE for the half year 2006 was at 12.2%. Looking ahead, Bursa Malaysia’s plan in the second six months of the year is focused on enhancing the market attractiveness which includes the introduction of several products and services, including the implementation of a new trading platform. Through its wider product choice, Bursa Malaysia hopes to match the needs of issuers with investor requirements and this would contribute to greater liquidity and enhance the overall vibrancy of the Malaysian market.
The presentation of the financial results for the first half of 2006 is also available on Bursa Malaysia’s website (www.bursamalaysia.com).
| FINANCIAL RESULTS | 2Q06 (Unaudited) | 2Q05 (Restated) | 6 months
ended 30.06.2006 (Unaudited) |
6 months ended 30.06.2005 (Restated) |
|---|---|---|---|---|
| RM‘000 | RM’000 | RM’000 | RM’000 | |
| Operating Revenue |
69,537 |
47,069 |
127,823 |
99,589 |
| Other Income |
8,357 |
15,380 |
21,321 |
36,438 |
| Total Revenue |
77,894 |
62,449 |
149,144 |
136,027 |
| Total Operating Expenses | (34,018) |
(33,580) |
(71,527) |
(70,661) |
| Profit from Operations |
43,876 |
28,869 |
77,617 |
65,366 |
| Finance Costs |
(154) |
(34) |
(278) |
(76) |
| Profit Before Taxation |
43,722 |
28,835 |
77,339 |
65,290 |
| Taxation |
(11,500) |
(9,696) |
(22,119) |
(21,144) |
| Profit for the Period |
32,222 |
19,139 |
55,220 |
44,146 |
| Minority Interest |
- | (342) |
(804) |
(1,385) |
| Net Profit for the
Period |
32,222 | 18,797 | 54,416 | 42,761 |
Note:
The figures for first half of 2005 have been restated to reflect the prior
year adjustment relating to share based payment under Employee Share Option
Scheme (ESOS).
