KUALA LUMPUR, July 30 — Bursa Malaysia Bhd’s net profit for the second quarter ended June 30, 2024, increased 5.1 per cent to RM80.44 million compared with RM76.24 million in the same period last year, on improved liquidity and market sentiments.

Revenue rose to RM199.94 million from RM144.59 million previously, it said in a filing to the exchange today.

For the first half year ended June 30, 2024, (1H 2024), net profit rose to RM155.47 million from RM132.42 million while revenue improved to RM387.13 million from RM301.09 million previously.

The increase in profit after tax, zakat and minority interest is attributed to a 29.3 per cent rise in operating revenue to RM374.5 million in 1H 2024 from RM289.6 million in 1H 2023.

Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said Bursa Malaysia’s strong performance in 1H 2024 was due to improved liquidity and market sentiments on the back of increased optimism in Malaysia’s economic progress and plans.

"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 in a statement.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said that notwithstanding the ongoing external macroeconomic headwinds, Malaysia’s capital market witnessed a strong performance in 1H 2024, marked by several record highs.

"Based on the current economic conditions and improved market sentiment, we are optimistic that this positive momentum can be sustained.

"We are committed to enhancing Bursa Malaysia’s appeal to create value for our stakeholders while driving economic growth,” he said.

Bursa Malaysia said that the robust trading activities seen in the securities market in 1H 2024 were supported by a strong economic outlook backed by an influx of foreign direct investments, expectation of improved corporate earnings performance and domestic liquidity.

"The ongoing local and global developments such as the monetary policy shifts in advanced economies, China’s economic recovery, geopolitical tensions in the Middle East, the United States Presidential election outcome, and the performance of the ringgit will continue to influence the volatility of the equity market.

"Interests to undertake initial public offering (IPO) remain healthy and the exchange expects the IPO momentum to sustain in the second half of 2024,” it said in the filing.

The exchange said it will continue with its outreach and widen investor participation through initiatives such as the Bursa Marketplace fair, Invest Malaysia series and the digitalisation of processes to provide easy access to investment opportunities for retail investors.

It said the derivatives market’s trading and hedging activities continue to be influenced by the volatility in the underlying commodity prices and equity market.

The forecast increase in crude palm oil production and active trading activities in the equity market is expected to have a positive impact on the market, it said.

As for the Islamic markets, the exchange said that it will continue its focus on introducing new value-added features in the Bursa Gold Dinar app as well as digital marketing efforts to increase investor base.

"Bursa Suq Al-Sila’ (BSAS) trading activity is expected to continue to be influenced by the liquidity in the Islamic interbank money market.

"Meanwhile, the exchange will continue to develop a wider range of innovative Shariah-compliant products and solutions including Islamic social finance offerings that cater to the demand of ethical and socially responsible investors such as waqf-featured exchange-traded fund.”

Bursa Malaysia is optimistic about meeting its headline key performance indicators for the financial year ending December 31, 2024 (FY2024).

"The board of directors has accordingly declared a higher interim dividend of 18 sen per share for FY2024. This amounts to approximately RM145.7 million, representing a dividend payout ratio of 93.7 per cent,” it added. — Bernama