Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar said with the continued growth in the economy, we are seeing continued investment into our capital market. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (July 30): Bursa Malaysia Bhd (KL:BURSA) has revised upwards its current financial year's target for profit before tax (PBT) to between RM361 million and RM379 million, up from the previously announced range of RM293 million to RM323 million.

This, its chairman Tan Sri Abdul Wahid Omar said, is driven by the company’s strong performance in the first half of the financial year ending Dec 31, 2024 (1HFY2024), and the optimistic outlook for the remainder of the year.

“With the continued growth in the economy, we are seeing continued investment into our capital market,” he told reporters at a press conference following Bursa Malaysia’s 1HFY2024 financial results announcement.

“We do expect corporates to perform better for 2024 compared to 2023, and with that we've seen greater inflow into the market, both domestic and foreign investors.

"That is why based on the performance in the first half, and the expected continued momentum into the second half, we have revised our PBT target for 2024 higher,” Abdul Wahid added.

For 1HFY2024, Bursa Malaysia’s net profit totalled RM155.48 million, up 17% from RM132.42 million while revenue rose 29% to RM387.14 million from RM301.1 million in 1HFY2023. Pre-tax profit totalled RM209.2 million.

The stock exchange operator reported its highest quarterly net profit in three years in the second quarter ended June 30, 2024 (2QFY2024), with a net profit of RM80.45 million, up 5.5% compared to RM76.25 million over the same quarter a year earlier, thanks to higher income from the securities market.

Bursa Malaysia is on track to meet its target of growing non-trading revenue by 5-7% for FY2024, Abdul Wahid said.

Among other non-financial targets, the company expects to meet its target of hosting 42 initial public offerings (IPOs) in 2024 with RM13 billion in total market capitalisation.

The stock exchange operator has seen 28 IPOs to-date — 21 in 1H and seven in July alone.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said 'we have an optimistic outlook for the remainder of 2024 as our observation of market signals indicates investor sentiment anchored on good fundamentals'.

This month, Malaysia's benchmark stock market index FBM KLCI exceeded 1,600 points, touching its three-year high of 1,636.55 on July 19. At 1,611.94 points on July 30 close, it is still up 10.81% this year.

Bursa Malaysia's Small Cap Index, which tracks most other Main Market stocks excluding the top 100, also rallied in 1H, touching its record high of 19,994.93 points on July 17. It is still up 18.47% this year.

Channel checks on Bursa Malaysia trading participation shows that foreign investors and local institutions were net buyers with RM343 million and RM3.68 billion net inflow to-date, contributing to the buoyed market this year, while retail investors were net sellers.

In terms of average daily trading value (ADV), foreign ADV in 1H rose to RM1.11 billion from RM607 million in FY2023, constituting 34% of total ADV, compared with 30% in FY2023.

Capital market inflow this year is a reflection of investor confidence, said Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift, who pointed to the reform initiatives by the government including the fiscal consolidation commitment, such as the subsidy rationalisation.

“The country’s fundamentals are supportive of an optimistic outlook for 2024. We have an optimistic outlook for the remainder of 2024 as our observation of market signals indicates investor sentiment anchored on good fundamentals,” he said.