Bursa Malaysia Berhad (Bursa Malaysia) today reported a net profit of RM90.9 million for the nine-month period ended 30 September 2008 – a 52% decline compared to the net profit of RM191.1 million for the corresponding period in 2007. Operating revenue fell by 35% to RM228.7 million from RM350.5 million recorded in the same period last year. The drop in profit was primarily due to the decreased trading revenue, resulting from the weak performance of the equities market, as similarly experienced by global bourses.
For the third quarter ended 30 September 2008, Bursa Malaysia posted a net profit of RM20.2 million, 64% lower compared to the profit of RM56.0 million recorded in the third quarter of 2007. Operating revenue declined by 42% to RM64.6 million in the third quarter of this year compared to RM111.3 million in the previous corresponding quarter.
The daily average trading value for the equities market (on-market and direct business transactions) was down at RM1.4 billion compared to RM2.5 billion for the period ended 30 September 2007. Velocity for the period under review was lower at 34% in comparison to 57% for the nine months of 2007. Trading revenue for the equities market decreased by 54% to RM110.9 million as compared to RM238.9 million in the nine months of 2007.
The derivatives market experienced only a marginal drop in terms of the number of contracts traded. A total of 4.67 million contracts were recorded in the period ended 30 September 2008, compared to 4.83 million contracts in the same period in 2007. The trading revenue for the derivatives market fell by 4% to RM33.3 million from RM34.8 million in the corresponding period in 2007. Dato’ Yusli anticipates investor interest on the exchange’s derivatives products to improve as the volume of FCPO contracts is likely to be positively influenced by lower margin rates. The entrance of new derivatives participants is also expected to boost market vibrancy and trading activities.
Dato’ Yusli also added that despite the prevailing challenging conditions, Bursa Malaysia will continue its focus on developing products and services that meet the growing requirements of international investors and issuers. The exchange is supplementing these efforts with market education as well as looking at opportunities for strategic alliances. He said, “We are committed to increasing the efficiency of our market infrastructure in line with our quest towards becoming a more developed market. At the same time, we will build upon opportunities by leveraging on our natural competitive advantages, specifically in the commodities and Islamic financial services sectors. These efforts bode well for our ongoing aim of building the market and enhancing its standing vis-à-vis global markets.”
The presentation of the financial results for the nine month period ended 30 September 2008 is also available on Bursa Malaysia’s website (www.bursamalaysia.com ).
| Financial Results | 9 months ended 30.09.2008 |
9 months ended 30.09.2007 |
|---|---|---|
| RM 'mil | RM 'mil | |
| Operating revenue | 228.7 | 350.5 |
| Other income | 31.9 | 38.3 |
| Total revenue | 260.6 | 388.8 |
| Staff costs | (64.8) | (64.5) |
| Depreciation and amortisation | (14.3) | (10.5) |
| Other operating expenses | (58.5) | (51.7) |
| Profit from operations | 123.0 | 262.1 |
| Finance costs | (0.5) | (0.5) |
| Profit before tax | 122.5 | 261.6 |
| Income tax expense | (31.6) | (70.5) |
| Profit for the period | 90.9 | 191.1 |
