KUALA LUMPUR, 29 October 2019 – Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) recorded a Profit After Tax and Minority Interest (“PATAMI”) of RM140.3 million for the nine-month financial period ended 30 September 2019 (“9M2019”), an 18.5% decrease from RM172.2 million reported in the previous corresponding period ended 30 September 2018 (“9M2018”). The decline in PATAMI is due to lower operating revenue by 11.1% to RM357.5 million from the previous corresponding period.
Total operating expenses in 9M2019 saw a decline of 2.1% to RM180.3 million. Marketing and business development expenses increased by 35.2% to RM10.4 million from 9M2018 as the Securities and Derivatives Markets continued to focus on its marketing and engagement initiatives to attract new participants.
The Securities Market performance in 9M2019 continued to be influenced by both global and domestic developments, such as the heightened risk of global economic slowdown, easing of global financing conditions and weaker corporate earnings.
Securities Market trading revenue decreased by 16.4% to RM173.6 million in 9M2019 mainly due to lower average daily value (“ADV”) for Securities Market’s on-market trades. Trading velocity was also lower by 6 percentage points to 28% compared to 9M2018. Nontrading revenue decreased by 4.1% to RM121.0 million from RM126.2 million in the previous corresponding period, mainly due to lower in listing and issuer fees and perusal processing fees. However, this was partially offset by higher market data revenue, underpinned by increase in number of subscriptions.
Derivatives Market trading revenue decreased by 10.1% to RM51.7 million in 9M2019, mainly due to lower number of contracts traded for Crude Palm Oil Futures (“FCPO”) and FTSE Bursa Malaysia KLCI Futures (“FKLI”). Average daily contracts (“ADC”) for the Derivatives Market saw a decrease of 5.6% to 52,644 contracts in 9M2019 compared to 55,779 contracts in 9M2018. As for the Islamic Capital Market, trading revenue for BSAS in 9M2019 increased by 2.7% to RM11.1 million.
ADV for BSAS grew by 46.7% to RM31.5 billion in 9M2019. Trading on BSAS is expected to sustain its strong performance through the expansion of its global reach and onboarding of new domestic non-bank participants onto its platform.
“Taking into consideration the Exchange’s performance to date and the continued challenging environment, we expect to register a satisfactory performance for the rest of the year supported by positive domestic catalysts from the recently announced Malaysian Budget 2020.”
Datuk Muhamad Umar Swift, Bursa Malaysia’s Chief Executive Officer