Bursa profit down in first quarter
Filed Under (Bursa Malaysia) by Webmaster on 19-04-2009
Tagged Under : Bursa Malaysia, profit
Equities trading revenue was down 60 per cent to RM19.5 million, while derivatives trading revenue fell 23 per cent to RM9.4 million.
Bursa Malaysia Bhd (1818) said its first quarter net profit dropped 63 per cent to RM15.5 million as low equities trading during the period hurt its revenue.
It expects a challenging year ahead as the global economy awaits more definite signs of recovery.
While its business depends on the performance of the securities and derivatives markets, the stock exchange operator said the implementation of the government’s stimulus measures would mitigate the impact of the global recession on the domestic economy.
Bursa Malaysia added that the smooth leadership transition augured well for the Malaysian capital market.
“While investors are generally waiting for clearer signals of economic recovery from global markets, the volume of trading activity in our market has seen a slight rebound this month, which speaks of improved sentiment and confidence in the market’s fundamentals,” Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said in a statement issued yesterday in Kuala Lumpur.
In the three months ended March 31 2009, Bursa Malaysia’s revenue declined 37 per cent to RM64.15 million from a year ago.
Equities trading revenue was down 60 per cent to RM19.5 million, while derivatives trading revenue fell 23 per cent to RM9.4 million.
Quarterly velocity was 23 per cent due to lower trading volume in the securities market.
The number of derivatives contracts traded fell 21 per cent to 1.38 million, but interest in Bursa Malaysia’s crude palm oil futures contract (FCPO) remained strong.
Both FCPO and Kuala Lumpur Index Futures products are expected to remain key revenue drivers for its derivatives market.
Stable revenue comprising depository services, listing fees, broker services and participants’ fees dropped 14 per cent to RM22.7 million.
However, the group’s total operating expenses were 4 per cent lower at RM42.2 million as a result of the cost-management efforts it undertook.
“Bursa Malaysia is in active cash-conservation mode, exercising prudent cost-management and cost-cutting measures.
” We aim to cut down on our budgeted operating expenses and capital expenditure by 15 per cent,” Yusli said.
He also said that the final gross dividend of 7.8 sen per share for its financial year 2008 will be paid out to shareholders on May 4.
Bursa Malaysia will continue to seek opportunities for strategic alliances or business collaborations, and look to launch its Bursa Commodity House, the FTSE Bursa Malaysia KLCI, and streamline its boards in the coming months.
