KUALA LUMPUR (April 30): Bursa Malaysia Bhd’s net profit for the first quarter ended March 31, 2020 (1QFY20) jumped 38% to RM64.73 million or eight sen per share, from RM46.86 million or 5.8 sen per share a year ago, thanks to higher revenue.

Revenue for the quarter was 19% higher at RM150.75 million versus RM126.53 million a year ago.

In a statement today, Bursa said the securities market registered a trading revenue of RM78.1 million for the quarter, compared with RM59 million for the previous corresponding quarter, an increase of 32.2% as a result of higher average daily trading value (ADV) of on-market trades. 

It said the broader market was well supported by local investors, both institutional and retail, recording a net buy position during the quarter.

Derivatives market trading revenue also increased by 63.5% to RM26.7 million for 1QFY20, from RM16.4 million a year ago, mainly due to a higher number of contracts traded for crude palm oil futures (FCPO) and FTSE Bursa Malaysia KLCI Futures (FKLI), as well as a higher number of trading days in the quarter under review, it said.

It added that average daily contracts for the derivatives market saw an increase of 80.7%, with 85,578 contracts seen in 1QFY20 versus 47,359 contracts previously.

Aside from trading revenue, conference fees and exhibition-related income decreased for 1QFY20 mainly due to the postponement of the Palm and Lauric Oils Price Outlook Conference & Exhibition 2020.

On the outlook, Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift noted that the Covid-19 pandemic has had profound impact across all industries.

“The exchange continued to ensure orderly operations of our market to preserve the flows of capital in our economy, as well as to aid market participants in managing potential risks and opportunities they may face. Amid the exceptionally volatile and uncertain market environment, we saw higher trading activity in both the securities and derivatives markets.

“As we continue through this uncertain and challenging environment, we will adjust our approach accordingly. Appropriate measures will be introduced as required to ease the financial burden of capital market participants and help [for a] speedier market recovery. We remain confident in our strategy to enhance market attractiveness and vibrancy through initiatives that we have in place that include efforts to broaden our product and service offerings, as well as initiatives to strengthen our ecosystem,” he said.

At the midday break today, Bursa had risen 1.55% or nine sen to RM5.89.