Bursa Malaysia Registers Profit After Tax And Minority Interest Of Rm49.9 Million In First Quarter Of 2016

Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) registered a profit after tax and minority interest (“PATAMI”) of RM49.9 million, up by 6.1 per cent for the first quarter ended 31 March 2016 (“1Q2016”) compared to the same period last year, on the back of higher operating revenue. The annualised return on equity (“ROE”) remained stable at 26 per cent as did the cost-to-income ratio at 47 per cent for the period under review.

Datuk Seri Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said, “Despite challenging market conditions and ongoing global volatility, growth in first quarter results remain positive.  While trading revenue in the Securities Market decreased marginally due to lower trading activities, the Derivatives Market trading revenue increased, as did the Islamic Capital Market’s Bursa Suq Al-Sila (“BSAS”) trading revenue following the adoption of the Murabaha concept and wider acceptance of tenor based pricing.”

For the period under review, the average daily trading value (“ADV”) for Securities Market’s on-market trades (“OMT”) fell by 4.8 per cent to RM1.98 billion as a result of lower trading activities.  The average daily contracts (“ADC”) for Derivatives Market fell by 4.1 per cent to 57,878 contracts, though there was an increase in FTSE Bursa Malaysia KLCI Index futures (“FKLI”) contracts by 23.8 per cent to 13,105 contracts. On the Islamic Capital Market front, BSAS recorded a 57.7 per cent increase in its ADV to RM18.7 billion with continuous growth from both domestic and foreign participation. Operating expenses, meanwhile, increased by 5.1 per cent to RM63.3 million.

Bursa Malaysia’s 1Q2016 PATAMI of RM49.9 million was down by 1.3 per cent compared to the preceding quarter ending 31 December 2015 (“4Q2015”).  The ADV for Securities Market’s OMT was down by 3.0 per cent from RM2.0 billion in 4Q2015, while ADC traded in the Derivatives Market increased by 3.4 percent from 55,985 contracts in 4Q2015. On the Islamic Capital Market front, the ADV of BSAS decreased by 1.5 per cent from RM19.0 billion in 4Q2015.

Datuk Seri Tajuddin said, “Despite continued market volatility, macroeconomic indicators such as a recovery in oil prices and the value of the ringgit, combined with capital market indicators such as foreign inflows and FBM KLCI resistance levels at 1,700, point towards a resilient market environment.  The integrity of the market is intact, with markets remaining fair and orderly, while the financial stability of our market participants and intermediaries are at healthy levels.  Notwithstanding the current volatility, I still believe our market is sustainable at the core, and I remain cautiously optimistic on the outlook for the rest of 2016.  On our part, we will continue to monitor the state of the market and intensify our engagements to attract more retail and institutional participation.”

The financial results for the quarter ended 31 March 2016 is available on Bursa Malaysia’s website (www.bursamalaysia.com)