KUALA LUMPUR: Bursa Malaysia Bhd's net profit rose 5.5 per cent year-on-year (YoY) to RM80.45 million for the second quarter ended June 30, 2024 (Q2 2024) from RM76.25 million in the same period last year due to improved market sentiment. 

Group revenue was up 38.3 per cent YoY to RM199.94 million from RM144.6 million in Q2 2023. 

For the first half ended June 30, 2024 (1H24), Bursa's net profit jumped 17.4 per cent to RM155.48 million from RM132.42 million in the same period last year. Its revenue edged higher to RM387.14 million from RM301.1 million in 1H23. 

The company declared a higher interim dividend of 18 sen per share for the financial year ending Dec 31, 2024. This amounts to RM145.7 million, representing a dividend payout ratio of 93.7 per cent.

Bursa said for 1H24, the securities market achieved a trading revenue of RM192.2 million, up 52.6 per cent increase from RM126.0 million in 1H23. 

This was driven by higher average daily trading value (ADV) for securities market's on-market trades and direct business trades  in 1H24, which rose to RM3.5 billion from RM2.1 billion in 1H23. 

Additionally, trading velocity increased by 14 percentage points to 42 per cent, up 28 per cent in 1H23.

Securities market non-trading revenue increased 9.6 per cent to RM72.3 million in 1H24 while listing and issuer services and depository services contributed significantly to this growth, recording RM33.1 million and RM31.4 million in 1H24, up from RM31.2 million and RM26.9 million in 1H23, respectively. 

The increase in listing and issuer services was driven by higher processing and perusal, as well as listing fees, earned in 1H24, whereas the increase in depository services revenue was primarily driven by higher depositors' account opening fees, securities borrowing and lending fees, and transfer fees earned in the same period.

Bursa chairman Tan Seri Abdul Wahid Omar said the strong performance was due to  improved liquidity and market sentiments on the back of increased optimism in Malaysia's economic progress and plans. 

"Recent estimates from the Department of Statistics Malaysia suggests Malaysia's GDP is likely to expand by 5.8 per cent in the second quarter of this year, indicating higher growth and renewed global investor interest in the country's ongoing reform efforts. 

"This interest could positively influence market momentum and stimulate capital market activities. With Malaysia's economic conditions anticipated to remain favourable, we are optimistic that strong results will be reflected in the exchange's performance for the second half of the year," he said. 

Bursa chief executive officer Datuk Muhamad Umar Swift said Malaysia's capital market witnessed strong performance in 1H24, marked by several record highs.

These included surpassing a record high market capitalisation of RM2.0 trillion and the FBM KLCI breaching the psychological 1,600-point mark and hitting the highest level in three years. 

"Trading in the securities market has remained active, contributing significantly to the exchange's performance. Based on the current economic conditions and improved market sentiment, we are optimistic that this positive momentum can be sustained," he said. 

Total derivatives trading revenue increased 16.8 per cent to RM51.9 million in 1H24 from RM44.5 million in 1H23 due to higher number of crude palm oil futures and FTSE Bursa Malaysia KLCI Futures contracts traded, and higher collateral management fees earned in 1H24. 

As for the Islamic markets, Bursa Suq Al-Sila' trading revenue was down 5.3 per cent to RM8.3 million in 1H24. 

"As a multi-asset exchange, we will leverage our strengths and drive changes that will excite investor interest and increase market liquidity. The exchange will expand its range of innovative products and solutions, including a Waqf-featured exchange-traded fund, and new retail investor access to investment notes via BR Capital," added Umar.

https://www.nst.com.my/business/corporate/2024/07/1083844/bursa-malaysias-q2-earnings-rise-rm8045mil-revenue-soars-383pct