KUALA LUMPUR: Bursa Malaysia Bhd’s net profit for the third quarter ended Sept 30, 2014 (3QFY14) jump 14.9% to RM53.09 million from RM46.21 million a year ago, underpinned by an increase in contracts traded during the quarter.

In a filing with the exchange yesterday, Bursa said its revenue for 3QFY14 increased 7.2% to RM128.96 million from RM120.28 million a year ago, while its earnings per share expanded to 10 sen against 8.7 sen in 3QFY13.

For the nine-month period (9MFY14), its net profit grew 4.2% to RM145.09 million from RM139.23 million, while revenue rose 3.9% to RM375.28 million from RM361.07 million a year ago.

Earnings per share for 9MFY14 was 27.2 sen from 26.2 sen a year ago.

Bursa recorded an RM87.9 million total segment profit for 3QFY14, an 11% increase from RM79.6 million in 3QFY13.

The securities market saw a segment profit of RM78.8 million in 3QFY14 against RM68.7 million previously due to higher trading value in the securities market in the quarter. Operating revenue for the segment was RM95.9 million, up 9% from RM88 million in 3QFY13 as the exchange regulator and operator registered higher equity-trading income.

Bursa said profit for the derivatives market was up marginally by 1% to RM10.3 million against RM10.2 million in 3QFY13. The higher profit in 3QFY14 was attributable to the increase in contracts traded.

“Operating revenue for 3QFY14 was RM20.6 million, representing an increase of 2% compared with RM20.2 million in 3QFY13. The increase came mainly from trading income as a result of higher contracts traded in 3QFY14 compared with 3QFY13.

“The income is partially offset by lower guarantee and collateral management fees earned, which are components of trading revenue,” Bursa said.

On the outlook, Bursa said the global economy is rather uncertain as key central banks contemplate measures to stimulate and sustain their economies.

“Global liquidity flows are expected to continue to be affected by such measures. The global volatility experienced this year has affected and is expected to continue to impact trading in capital markets worldwide.”

Nevertheless, it foresees Malaysia’s economy will exceed Bank Negara Malaysia’s growth forecast of 5.5% for the year.

“The underlying strong fundamentals of the Malaysian economy and the economic growth prospects are expected to continue to support investor confidence.

“The ample liquidity in the domestic financial system is also sufficient to support the capital market over the short and medium term,” it said, adding that against this backdrop, investor sentiment on equities should remain positive.

“Crucial to the growth of our market in the current economy are our outreach activities as well as the ability to provide diversified and investable products to existing and potential investors,” it said.

Bursa said the challenges and uncertainties, which affect investor sentiment and appetite in the equities market, will continue to affect FTSE Bursa Malaysia KLCI Futures volumes, while the present uncertainty in palm oil prices will influence the volumes traded for futures crude palm oil.

“Overall, our efforts to deepen our distribution channels, promote our products and widen our range of derivatives offerings are expected to improve visibility and sustain trade volumes for the remainder of the year,” it said.

This article first appeared in The Edge Financial Daily, on October 21, 2014.