KUALA LUMPUR, Oct 31 — Bursa Malaysia Bhd’s net profit increased to RM60.41 million in the third quarter ended Sept 30, 2023 (3Q 2023) from RM50.13 million a year ago, contributed by higher profit earned by securities and data business segments.

Revenue rose to RM158.71 million from RM140.36 million previously, it said in a filing to the exchange.

It said the Securities Market recorded a segment profit of RM82.6 million in 3Q 2023, an increase of 24.4 per cent compared with RM66.4 million in the same quarter last year mainly due to higher operating revenue of RM104.0 million.

The Derivatives Market recorded a segment profit of RM10.5 million in 3Q 2023, a decrease of 29.2 per cent from RM14.8 million in 3Q 2022 dragged by lower operating revenue and higher operating expenses.

The Islamic Market segment profit eased to RM1.8 million from RM2.0 million before due to a decline in operating revenue from lower Bursa Suq Al-Sila’s trades while the Exchange Holding Company recorded a higher segment loss of RM2.7 million mainly due to depreciation expenses incurred but was partially offset by higher interest/profit income earned in 3Q 2023.

Meanwhile, the Data Business segment profit rose 25.1 per cent to RM16 million from RM12.8 million previously, while the Other segment, which is made up of bonds, offshore exchange, and carbon market businesses, saw a higher segment loss of RM1 million in 3Q 2023 mainly due to higher staff costs.

For the first nine-month period ended September 30, 2023 (9M 2023), Bursa Malaysia reported a profit after tax, zakat and minority interest of RM192.8 million, up 8.6 per cent, from RM177.6 million recorded in 9M 2022.

Revenue for the period increased slightly to RM459.80 million against RM457.54 million previously.

Going forward, Bursa Malaysia expects the trading activity in the Securities Market to be influenced by various ongoing local and global developments, including monetary policy shifts in advanced economies, Bank Negara Malaysia’s overnight policy rate, foreign fund flows, the performance of ringgit, and corporate earnings results.

"The Government’s Madani Economy policy framework, which will be a catalyst for specific policies such as the National Energy Transition Roadmap, the New Industrial Master Plan 2030 and the Mid-Term Review of 12th Malaysia Plan, is expected to stimulate activities in the Securities Market,” it said.

In a separate statement, Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift commented that the exchange anticipated to meet most of its headline key performance indicators (KPI) for the current financial year (FY).

"Bursa Malaysia will continue to foster a vibrant and sustainable capital market ecosystem, with a focus to diversifying fundraising and trading opportunities for our valued stakeholders. This entails future broadening of our product and service offerings, such as the commercialisation of a new debt fundraising solution for small and medium enterprises and the launch of Bursa Gold Dinar,” he said.

Bursa Malaysia said it has signed a memorandum of collaboration with TNG Digital Sdn Bhd and Affin Hwang Investment Bank Bhd to develop a new feature that will enable investors to easily participate in the equities market through the Touch ‘n Go digital platform as part of its ongoing efforts to democratising equity investments and promoting financial inclusion.

"The Derivatives Market trading and hedging activities will continue to be influenced by the volatility in the underlying commodity prices and the FTSE Bursa Malaysia KLCI.

"Nonetheless, the exchange is committed to enhancing the ecosystem through its initiatives such as the Futures Trading Apprenticeship Programme to grow the pool of skilled derivative traders,” it said.

As for the Islamic Markets, it will continue to focus on developing new and innovative Shariah-compliant products and solutions that are better aligned with environment, social and corporate governance such as waqf-featured listed products and Bursa Gold Dinar.

"Bursa Malaysia is optimistic in meeting the announced headline KPI for FY2023 except for the number of initial public offerings (IPO).

"While the IPO market capitalisation KPI has already been achieved, the exchange is expected to register 31 IPOs for the full year against the target of 39 IPOs, mainly attributed to the lower LEAP listing as companies are assessing the LEAP Transfer Framework before making the decision on their listing,” it noted. — Bernama