Bursa Malaysia profit drops 23.6% in first half of 2019

KUALA LUMPUR: Bursa Malaysia Bhd recorded a profit after tax and minority interest of RM93.2 million for the first half ending June 30, 2019, a 23.6% decrease from RM122 million reported in the same period last year.

In a press statement, it attributed the decline to a drop in operating revenue, which fell by 14% to RM240 million.

It said total operating expenses in 1H2019 continue to be well managed, with a marginal decrease of 0.7% to RM122.6 million from RM123.4 million in 1H2018.

At a press conference, Bursa Malaysia CEO Muhamad Umar Swift said: “Our markets performed in line with expectations as investors continued to adopt a cautions stance for the first half of the year.”

He added that the securities market’s performance was influenced by global and domestic developments, especially the softening of global growth, easing in financing conditions and weaker corporate earnings.

“Trading revenue decreased by 19.6% to RM117.8 million in 1H2109 (first half of 2019) from RM146.5 million 1H2018, mainly due to lower average daily value for securities market’s on market trades.” Muhamad said.

However, he added, despite external headwinds, the securities market’s performance for the second half of 2019 was expected to be “resilient”.

Muhamad also said Bursa Malaysia was targetting 13 initial public offerings (IPOs) in the second half with a market capital of RM15 billion, compared with 14 IPOs in the first half.

In 2018, there were 22 IPOs compared with 14 in 2017. In terms of the amount raised, it was lower at RM633.12 million compared with RM7.38 billion in 2017.

This was because most of the companies were in Leading Entrepreneur Accelerator Platform (LEAP) market listings.

Bursa’s LEAP market is where wealthy investors can lend money via the capital market to small and medium-sized enterprises.

Muhamad also said Bursa would be refreshing its website with more features in terms of products and services.