Bursa Malaysia optimistic of achieving profit, IPO targets
Chairman says market signals indicate investor sentiments anchored on good fundamentals, exchange seeing solid growth
KUALA LUMPUR: Bursa Malaysia Bhd is optimistic about achieving its profit before-tax target of between RM361 million and RM379 million in the financial year ending Dec 31, 2024.
Bursa Malaysia chairman Tan Sri Wahid Omar said apart from that, it is also confident of achieving 42 initial public offerings (IPO) this year.
“We have 28 IPOs to date and we are seeing solid growth in terms of new IPO market for this year, and we are confident in meeting our IPO target for this year. We are introducing new asset classes in our equity market to support traditional business and attract more investors,” he told reporters after announcing Bursa Malaysia’s firsthalf results yesterday.
He said market signals indicate investor sentiments anchored on good fundamentals and Bursa Malaysia is seeing solid growth in 2024.
“Recent estimate from the Department of Statistics Malaysia suggests Malaysia’s GDP is likely to expand by 5.8% 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 Bursa Malaysia’s performance for the second half of the year,” Abdul Wahid said.
Bursa Malaysia posted a net profit of RM80.44 million for the second quarter ended June 30 (Q2’24) from RM76.24 million recorded in the same quarter last year. Revenue for the quarter stood at RM199.94 million against
RM144.59 million last year.
Trading value increased by 81.3% to RM104.8 million in Q2’24 from RM57.8 million posted in the same quarter last year.
The increase was mainly due to higher average daily trading value for on-market trades. Direct business trades increased by 105.3% to RM3.9 billion in Q2’24 from RM1.9 billion posted in Q2’23.
The Islamic market recorded a segment profit of RM1.3 million for Q2’24, a decrease of 48.2% from RM2.5 million posted in Q2’23, mainly due to higher operating expenses.
For first-half 2024 (H1’24), Bursa Malaysia posted a net profit after zakat and minority interest of RM155.5 million, representing an increase of 17.4% from RM132.4 million recorded in H1’23.
Total derivatives trading revenue increased by 16.8% to RM51.9 million in H1’24 from RM44.5 million in H1’23. This was primarily due to the higher number of crude palm oil futures and FTSE Bursa Malaysia KLCI Futures contracts traded, and higher collateral management fees earned in H1’24.
Average daily contracts for the derivatives market rose by 13.6%, with 84,927 contracts traded in H1’24 compared to 74,735 in H1’23.
Bursa Malaysia’s board declared a dividend payout of 18 per share, payable by the end of this month.
Bursa Malaysia CEO Datuk Muhamad Umar Swift said that notwithstanding ongoing external macroeconomic headwinds, Malaysia’s capital market witnessed strong performance in the first half of 2024, marked by several record highs.
He said these included surpassing a record high market capitalisation of RM2 trillion and the FBM KLCI breaching the psychological 1,600-point mark and hitting the highest level in three years, both achieved in May this year.