BURSA MALAYSIA BHD []'s net profit for the second quarter ended June 30, 2010 (2Q10) fell by 21% or RM7.5 million to RM27.5 million from RM35 million a year ago.
In a statement on Friday, July 16, it said 2Q revenue dipped to RM84.27 million from RM94.58 million a year ago. For the six months ended June 30, Bursa’s net profit rose to RM55.55 million from RM50.52 million a year earlier.
The stock market operator declared an interim single-tier dividend of 9.5 sen per share.
Bursa said equities trading revenue decreased by 23% to RM36.8 million in 2Q10 compared to 2Q09. Daily average trading value for on-market trades (OMT) and direct business trades (DBT) was lower at RM1.29 billion (2Q09: RM1.56 billion), it said.
Derivatives trading revenue decreased by 23% to RM9 million in 2Q10 compared to 2Q09. Total contracts traded in 2Q10 were 1.44 million compared to 1.88 million traded in 2Q09.
Stable revenue increased by 13% to RM26.7 million in 2Q10 compared to 2Q09 primarily due to higher listing fees and issue fees as a result of an increase in initial public offerings (IPOs), structured warrants and secondary issues.
The increase in stable revenue was also due to the recognition of CDS fees billed to Authorised Depository Agents from September 2009, said Bursa.
Other operating revenue increased by 7% mainly due to the new processing fee income streams effective August 2009. This was partially offset by lower interest earned from participants' contributions in 2Q10 compared to 2Q09, it said. Other income remained fairly stable at RM7.8 million in 2Q10 and 2Q09, it said.
Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said its financial performance reflected its continued focus on delivering sustainability and overall business growth.
As demonstrated by the higher trading value for the period under review, the market sentiment improved somewhat although many investors still adopted a cautious outlook.
Nonetheless, we hope to see greater interest in our market moving forward with the inclusion of new investment "offerings such as Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs), as well as Callable Bull/Bear Certificates (CBBC).
"In addition, as a result of the recognition given by China’s Qualified Domestic Institutional Investor (QDII) which now allows the inflow of China funds to the Malaysian finance and capital markets, we hope to see greater foreign investor attention,” added Yusli.
Written by Surin Murugiah
The Edge Malaysia
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