Bursa Malaysia Profit Fall by 72%
Filed Under (Bursa News) by Webmaster on 04-02-2009
Tagged Under : Bursa Malaysia, profit 2008
The Star reported that Bursa Malaysia Bhd saw its net profit for the fourth quarter ended December 31, 2008 (Q4) fall 72.67% to RM13.52 million.
Revenue for the same period dropped 31.09% to RM71.11 million due to challenging economic and market conditions last year.
In a note attached to its Q4 and full-year financial results, the company said the decrease in trading revenue from the equity market due to the widening global recession and volatility of the domestic equity market were factors leading to a decline in net profit and revenue for the quarter.
“The poorer market performance and the revised clearing fee structure effective January 1, 2008 resulted in a decrease in equity trading revenue of 55% to RM25.9 million in Q4 compared to the same quarter a year ago,” it added.
However, the company said trading revenue from the derivatives market for the quarter increased by 4% to RM10.3 million due to the increase in contracts to 1.45 million from 77,000 in the previous corresponding quarter.
For the financial year ended December 31, 2008 (FY08), it recorded a 57% decline in net profit of RM104.42 million compared to the RM240.62 million in FY07. Operating revenue was down 35% to RM290.30 million from RM443.40 million recorded in FY07.
Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said in a press statement Wednesday that the company has managed to maintain a fairly strong balance sheet despite the exchange being significantly impacted by the continuing global economic crisis.
“Currently, investors are choosing to remain on the sidelines, not only in our market but also elsewhere, due to the continued volatility. The uncertainties in the market will continue until there are clear signs of economic stability from the US and other developed markets,” he said.
Trading revenue for the equities market slipped by 54% to RM136.8 million in 2008 as compared to RM296.5 million for the corresponding period in 2007.
The derivatives market recorded -1% growth for the total number of derivatives contracts in 2008 against the earlier set target of 50% growth.
The total number of derivatives contracts traded dropped by 1%, at 6.1 million contracts in 2008 versus 6.2 million contracts in the same period in 2007.
