PETALING JAYA: Bursa Malaysia Bhd reported a more than 2.5-fold increase in net profit to RM121.94 million for the third quarter ended Sept 30, 2020 compared with RM47.1 million reported in the same period of the previous year, on the back the back of the improved performance from the securities and derivatives markets.
Revenue for the quarter surged 93.8% to RM237.74 million from RM122.67 million reported previously.
According to the group’s disclosure, the securities market saw a segment profit of RM180.2 million in Q3’20, a 143.7% increase from RM74 million reported in Q3’19 mainly due to higher trading revenue.
Meanwhile, the quarter saw the derivatives market’s segment profit rose by 32.2% to RM12.6 million from RM9.5 million registered previously, attributed mainly to a higher trading revenue.
The exchange holding company saw a higher segment loss of RM4.5 million for the quarter compared with RM2.6 million previously, due to higher staff costs. Its others segment, which is made up of Bursa Suq Al-Sila, bonds and offshore exchange business, saw a 8.3% increase in profits of RM2.2 million from RM2.1 million previously.
However, its overheads increased by 44.5% to RM26.2 million from RM18.2 million registered previously on the back of higher staff costs .
In the first nine months of the year, the group saw a net profit of RM272.89 million, a 94.% jump from RM140.3 million posted in the same period of the previous year. Revenue for the period stood at RM568.27 million, a 52.3% improvement from RM373.16 million.
Investor participation in the securities market continued to increase, with average daily trading value growing by 101.8% to RM4 billion in nine months 2020 compared with RM2 billion in nine months 2019.
“The continuous operations of our markets have been critical in making available the necessary liquidity and risk management tools for investors to respond in a higher volatility environment and invest in new opportunities,” said the bourse operator’s CEO, Datuk Umar Swift. in a statement.
He said the key economic indicators points towards an improving outlook for the Malaysian economy, but the ongoing Covid-19 developments will continue to influence the volatility and performance of the securities and derivatives markets.
Towards that end, Swift said, it has been working closely with other regulators to ensure market efficiency and improved market accessibility and liquidity to support participants during this period.
“Despite the challenges, we are well positioned to continue developing the marketplace and make further progress on our strategic plans.”
