KUALA LUMPUR (July 30): Bursa Malaysia Bhd reported a 2.2% year-on-year dip in its net profit for the second quarter ended June 30, 2018 (2QFY18) to RM58.21 million, from RM59.54 million previously.

This resulted in its earnings per share slipping to 7.2 sen in 2QFY18, from 7.4 sen in the corresponding quarter a year ago.

Revenue stood at RM140.56 million, representing a 1.5% decline from RM142.67 million in the same quarter last year.

Its board of directors approved a first interim dividend of 14 sen per share and a special dividend of 8 sen per share for the financial year ending Dec 31, 2018, amounting to approximately RM177.6 million payable on Aug 29.

In comparison, this is lower than the 35 sen dividend the company declared in July 2017, which was a 15 sen special dividend on top of the 20 sen first interim dividend per share.

In an exchange filing today, Bursa Malaysia said the securities market turned in a 1.9% decline in profit to RM87.2 million, from RM88.9 million in 2QFY17, mainly due to the lower trading revenue in the quarter under review.

It said trading revenue fell due to the lower effective clearing fee rate, despite registering a higher average daily trading value for on-market trades and direct business trades.

The effective clearing fee rate of 2.15 basis points in 2Q18 was lower than 2.34 basis points in 2Q17, due to higher proportion of trades subject to the clearing fee cap.

Operating expenses for the segment rose 6.6% on year, mainly due to higher staff costs, it said.

Over at the derivatives market, Bursa Malaysia noted a 10.8% growth in profit to RM11.6 million, from RM10.4 million in 2QFY17, attributable to higher trading revenue.

Segment expenses decreased by 6.8% in 2QFY18, mainly due to lower service fees incurred from lower number of contracts traded in the quarter.

For the first half of the financial year (1HFY18), net profit improved 5% to RM122 million, from RM116.17 million in the same period last year.

Cumulative revenue, meanwhile, rose 2.1% to RM291.27 million in the period under review, from RM285.36 million in 1HFY17.

Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan said Bursa Malaysia's performance was commendable, as it achieved its highest ever half-year operating revenue of RM279.1 million, and the highest recorded average trading value for securities market's on-market trades of RM2.7 billion, since its listing in 2005.

"As we move forward in a new Malaysia, I am confident that on the back of strong economic fundamentals and the new government's approach towards strengthening transparency and accountability as well as the principles of good public governance, the Malaysian capital market will continue to remain resilient.

"Given time and with greater clarity, the new policies and governance reforms will drive confidence amongst investors and businesses in the country's economy and provide the Exchange with new growth opportunities for the future," said Tajuddin.

Bursa Malaysia's shares settled unchanged at RM7.81 at noon break today, with a market capitalisation of RM6.3 billion.