Friday 29 Mar 2024
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KUALA LUMPUR (Oct 24): Bursa Malaysia Bhd's net profit for the third quarter ended Sept 30, 2016 (3QFY16) fell 14.4% to RM44.04 million or 8.2 sen per share from RM51.47 million or 9.6 sen per share a year earlier as profit from securities market weakened.

According to its unaudited financial statement posted on the exchange, its profit derived from the securities market declined 11.1% to RM64.3 million from RM72.3 million in previous year's corresponding quarter.

Quarterly revenue was down 7.3% to RM119.4 million from RM128.83 million a year ago due to lower revenue recorded in both the securities and derivatives markets.

There was no dividend proposed in the current quarter.

According to its bourse filing, the stock exchange regulator said overhead costs for the quarter increased by 20.5% to RM17.5 million mainly due to higher staff costs and professional fees.

Its securities market operating revenue for 3QFY16 was RM83.1 million, representing a decrease of 7.7% from RM90 million in 3QFY15.

"Trading revenue decreased by 10.5% to RM51.3 million in 3QFY16, with a lower average daily value (ADV) for on-market trades (OMT) and direct business trades (DBT) of RM1.88 billion compared to RM2.01 billion in 3QFY15," it added.

The derivatives market segment recorded a profit of RM12.9 million in 3QFY16, a decrease of 5.7% from RM13.7 million in 3QFY15 mainly due to lower trading volume.

Trading revenue fell by 13.3% to RM20.8 million in 3QFY16 as a result of lower number of contracts traded.

"A total of 3.44 million contracts were traded in 3QFY16 compared to 3.84 million contracts in 3QFY15," it said.

For the cumulative nine-month period (9MFY16), its net profit declined 3.1% to RM146.45 million or 26.8 sen per share from RM148.01 million or 27.7 sen per share a year ago due to lower contribution from securities market and higher operating expenses.

Revenue for the period gained marginally to RM383.05 million from RM382.95 million.

According to Bursa, the securities market recorded a segment profit of RM204.4 million in 9MFY16, down 4.6% from RM214.3 million in 9MFY15, mainly due to lower trading revenue.

"Trading revenue decreased by 5.4% to RM163.9 million in 9MFY16. In 9MFY16, it saw a lower ADV for OMT and DBT of RM1.98 billion compared to RM2.06 billion in 9MFY15," it added.

Bursa said the derivatives market segment recorded a profit of RM44.1 million in 9MFY16, up 14.8% compared to RM38.4 million in 9MFY15.

The segment's operating revenue for 9MFY16 climbed 4% to RM78.8 million from RM75.8 million in 9MFY15, while trading revenue gained 4.4% to RM66.8 million due to higher guarantee fee and collateral management fee, it said.

Operating expenses increased by 6.5% to RM68.3 million in 9MFY16 mainly due to higher staff cost.

Going forward, Bursa said the securities market performance continues to be influenced by global and local economic and market developments.

"Nonetheless, domestic liquidity continues to provide support to the equity market given Malaysia's resilient and strong economic fundamentals," it added.

Derivatives market activities will continue to be influenced by volatility in commodity prices and the FBM KLCI, it said.

It also expects the introduction of Bursa Malaysia-i, the world's first fully integrated Islamic securities exchange platform, to further attract a wider pool of both domestic and foreign investors.

Notwithstanding that, Bursa remained cautiously optimistic on its performance for the year and shall continue with its initiatives in making the Malaysian equity and derivatives markets more attractive and vibrant.

At the noon market break, Bursa fell 14 sen or 1.55% to RM8.89 with 31,600 shares traded, for a market capitalisation of RM4.77 billion.

 

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