Bursa’s Q3 net profit down on lower revenue

PETALING JAYA: Bursa Malaysia Bhd’s net profit for the third quarter ended Sept 30, 2016 fell 14.4% to RM44.04 million from RM51.47 million a year ago, mainly due to lower revenue from the securities market.
Revenue was 7.3% lower at RM119.40 million compared with RM128.83 million in the previous year’s corresponding quarter.
For the nine months period, its net profit dipped 3% to RM143.45 million from RM148.01 million a year ago, mainly due to lower revenue from the securities market.
Its revenue rose marginally to RM383.05 million compared with RM382.95 million in the previous corresponding period.
Bursa Malaysia said the securities market’s performance continues to be influenced by global and local economic and market developments. Nonetheless, domestic liquidity continues to provide support to the equity market given Malaysia’s resilient and strong economic fundamentals.
Derivatives market activities, however, will continue to be influenced by volatility in commodity prices and the FBM KLCI.
On the Islamic capital market front, the transactions on Bursa Suq Al-Sila’ are expected to be sustained with the continuous demand for Murabaha contracts to aid liquidity management. The introduction of Bursa Malaysia-i, the world’s first fully integrated Islamic securities exchange platform, is expected to attract a wider pool of both domestic and foreign investors.

Notwithstanding the challenges ahead, the exchange remains cautiously optimistic on its performance for the year, and will continue with its initiatives in making the Malaysian equity and derivatives markets more attractive and vibrant.