Written by Joseph Chin
Friday, 16 October 2009 12:55
KUALA LUMPUR: BURSA MALAYSIA BHD [] reported a 52% increase in net profit of RM30.75 million for the third quarter ended Sept 30, 2009 as the stock exchange operator benefited from the higher trading volume.
It said on Friday, Oct 16 that revenue rose to RM86.29 million from RM73.63 million while earnings per shares were 5.80 sen compared with 3.80 sen.
On the higher earnings, it said this was mainly due to improved investors' sentiment as a result of improving global economic statistics which boosted trading revenue from the securities market.
However, the total number of contracts traded on the derivatives market decreased by 80,000 contracts to 1.51 million contracts in 3Q09 (3Q08: 1.59 million), resulting in a drop in trading revenue from the derivatives market by 18% to RM9.2 million in 3Q09 compared to 3Q08.
The decrease was mainly due to a lower number of FKLI contracts traded (3Q09: 500,000 contracts; 3Q08: 700,000 contracts). This was partially offset by the increase in number of FCPO contracts traded (3Q09: 1.03 million contracts; 3Q08: 0.85 million contracts).
Bursa Malaysia said stable revenue increased by 13% to RM29.1 million in 3Q09 compared to 3Q08 primarily due to higher CDS fees (of which RM4.7 million was attributed to prior periods). This increase was partially offset by lower annual listing fees as a result of lower market capitalisation of RM660 billion as at Dec 31, 2008 compared to RM1.11 trillion as at Dec 31, 2007.
The increase was further offset by a reduction in broker services income following the phasing out of older network equipment.
The on-market trades (OMT) on the securities market recorded a velocity of 36% (3Q08: 25%) and a daily average trading value for OMT and direct business trades (DBT) of RM1.38 billion (3Q08: RM890 million).
This resulted in an increase in trading revenue from the securities market by 46% to RM38.0 million in 3Q09 compared to 3Q08.
Other income increased marginally by 3 per cent to RM7.2 million in 3Q09 compared to 3Q08. The increase was due to a gain from disposal of motor vehicles and the recognition of the ETP Phase II grant. Interest income reduced as a result of a lower level of funds available for investment and lower return on investment.
BURSA
Bursa Malaysia said the Group recorded a lower profit before tax of RM43.8 million for 3Q09 compared to RM48.3 million in 2Q, which was a decrease of RM4.6 million or 9%.
Trading revenue from the securities market decreased by 21% to RM38.0 million in 3Q09 compared to RM47.9 million in 2Q09 mainly due to the lacklustre market as investors remained cautious over uncertainties in the strength of the domestic economic growth and global economic recovery.
The securities market recorded a velocity for OMT of 36% (2Q09: 48%) and a daily average trading value for OMT and DBT of RM1.38 billion (2Q09: RM1.56 billion).
Trading revenue from the derivatives market decreased by 21% to RM9.2 million in 3Q09 compared to RM11.7 million in 2Q09 mainly due to decrease in total number of contracts traded by 20% to 1.51 million in 3Q09 from 1.88 million in 2Q09.