KUALA LUMPUR (Jan 28): Bursa Malaysia Bhd posted a 38% decline in its net profit for the fourth quarter ended Dec 31, 2021 (4QFY21) to RM65 million, from RM104.9 million a year earlier, amid lower contribution from its securities market segment.

Its revenue for the quarter fell 28% to RM165.2 million from RM230.7 million a year earlier.

The group declared a final dividend of 17 sen per share, amounting to RM137.6 million.

Total segment profits for the quarter amounted to RM115.4 million, dropping 30% from RM164.7 million in the previous year’s corresponding quarter, amid a 36% decline in contribution from its securities market segment, due to lower trading revenue.

Bursa Malaysia attributed the decline in trading revenue to lower average daily trading value (ADV) for on-market trades (OMT) and direct business trades (DBT).

Meanwhile, its derivatives market saw an 85% year-on-year increase in segment profit to RM10.7 million, from RM5.8 million, amid lower operating expenses.

For the full year (FY21), its net profit stood at RM355.25 million, down 6% from RM377.7 million the previous year, while its revenue fell 4% to RM767.5 million from RM799 million.

Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said the exchange had demonstrated great resilience and performed well in 2021, despite the difficult year.

“We continued to witness active trading for securities on our stock exchange, at an average daily trading value of RM3.5 billion. In addition, we recorded 30 IPOs in FY21 compared to only 19 in FY20, which raised a total of RM2.7 billion. 

“These numbers are testament that companies and investors are confident in the Malaysian capital market and the exchange as a platform for their fundraising and investing needs,” he said in a statement.

The securities market saw an 11% fall in trading revenue during the year to RM442.9 million, due to lower ADV for OMT and DBT transactions.

Despite a record high of 18.4 million total contracts traded in 2021, surpassing the previous high of 18.2 million total contracts registered in 2020, the derivatives market trading revenue decreased 4% to RM87.3 million in FY21 from RM91.1 million in FY20, due to lower number of FKLI contracts traded in 2021.

The securities market continues to show long-term growth, said Bursa Malaysia chief executive officer Datuk Muhammad Umar Swift, adding that the exchange is exploring new products for the derivatives market while revamping existing ones.

“We will continue efforts to expand our Islamic capital market by developing new Shariah-compliant products and services, creating greater alignment between Shariah investing and sustainable and responsible investment, while exploring product expansion across the value chain of Islamic wealth management solutions,” he said.

The exchange will also increase efforts in advocating ESG practices and climate action initiatives in 2022, added Muhammad Umar, highlighting the group’s target to achieve carbon neutrality by 2022 and net zero emissions by 2050 across its entire operations.

Bursa Malaysia rose one sen or 0.2% to RM6.17 at the noon market break, for a market capitalisation of RM5.01 billion.