Bursa Malaysia Bhd registered a Profit After Tax and Minority Interest (PATAMI) of RM63.8 million for the first quarter ended 31 March 2018 (1Q2018), an increase of 12.6% from RM56.6 million reported in the previous first quarter ended 31 March 2017 (“1Q2017”), and an increase of 15.4% compared to the preceding quarter ended 31 December 2017.
Both cost-to-income ratio and annualised return on equity (“ROE”) saw improvements by 3 and 4 percentage points respectively. The growth in PATAMI is primarily due to higher operating revenue of RM144.8 million, a 7.5% increase from the previous corresponding quarter. Earnings per share for the first quarter rose to 7.9 sen from 7.0 sen in the previous corresponding quarter (after adjusting for the effects of the bonus issue).
Bursa Malaysia Chief Executive Officer, Datuk Seri Tajuddin Atan said, “We have started the year on a firm footing, recording our highest ever quarterly operating revenue since listing in 2005. Our strategic initiatives continue to show progress which is reflected by the continued growth in our capital market.”
“The first quarter of the year has seen Average Daily Trading Value (“ADV”) for Securities Market’s On-Market Trades (OMT) continue to grow reaching RM2.7 billion in 1Q2018. We also saw the listing of MYETF-US50, the first foreign currency securities listing, establishing the Exchange as a multi-asset and multi-currency exchange. Moving forward, we will endeavour to achieve further positive trend of growth by continuing with our market development and marketing efforts.”
For the quarter under review, Securities Market trading revenue grew by 13.5% to RM76.3 million from RM67.2 million in the previous corresponding quarter. This was driven by higher ADV for OMT, which grew by 14.2% compared to the previous corresponding quarter. Non-trading revenue increased by 7.9% to RM45.6 million from RM42.3 million in the previous corresponding quarter, contributed by higher listing and issuer services fees and depository services fees.
The Derivatives Market trading revenue declined by 10.5% to RM19.0 million in 1Q2018 from RM21.2 million in the previous corresponding quarter, due to lower number of derivatives contracts traded. Average Daily Contracts (“ADC”) for Derivatives Market in 1Q2018 was at 54,020 compared to 62,076 in 1Q2017, representing a decrease of 13.0%.
As for Islamic Capital Market, Bursa Suq Al-Sila’ (“BSAS”) trading revenue increased marginally by 0.1% to RM4.0 million compared to the previous corresponding quarter mainly due to the volume-based pricing introduced in December 2016.
ADV of BSAS grew by 30.2% to RM22.6 billion in the quarter under review compared to 1Q2017, contributed by higher trades from both domestic and foreign participants.
Tajuddin added, “We will continue to maintain this positive momentum by seeing through the implementation of initiatives that further enhance and expand the market eco-system. The measures announced by the government earlier this year to liberalise and boost our capital market is an opportunity that further complements our areas of focus and provides us the impetus to continue delivering on our promise to develop a sustainable marketplace and enhance the breadth and depth of the ecosystem.”