‘All sorts of things can happen in 1 quarter.’
Bursa Malaysia Bhd saw net profit for the first quarter of 2022 (1QFY22) fall due to lower trading results.
An official statement from Bursa saw 1QFY22's net profit record RM67.97 million while last year it recorded RM121.39 million, a decrease of 44.01%.
In addition, its quarterly revenue also declined 28.83% to RM165.3 million from RM232.28 million.
According to Bursa's Chief Executive Officer (CEO), Datuk Muhamad Umar Swift, the average daily trading value of securities has returned to normal to pre-pandemic levels and has indirectly led to a decline in profits.
Turnover for the most recent quarter recorded a decrease of 46.7% to RM80.4 million from RM150.9 million reported in 1QFY21.
Meanwhile, the trading velocity at 1QFY22 is seen to be 36% lower than 1QFY21 at 70%.
Meanwhile, funds raised through initial public offerings (IPOs) for the current quarter amounted to RM1.5 billion, slightly higher than the RM0.2 billion recorded in the previous quarter.
On the other hand, the average daily contract of the derivatives market fell by 3.5%, to 77,513 contracts for 1QFY22 compared to 80,338 contracts during 1QFY21.
The Islamic market for higher trading activity on Bursa Suq Al-Sila ’showed an increase in trading revenue of 12.2% to RM3.8 million from RM3.4 million.
Listing and publishing services rose 7.2% to RM16.9 million from RM15.8 million while the market data business rose 4.8% to RM14.8 million from RM14.1 million.
Total operating expenses jumped 4.6% to RM72.5 million from RM69.4 million, due to provisions for depreciation other than amortization as well as increased technology, marketing and administrative expenses.
Umar added that Bursa expects more trading opportunities for investors due to the movement in crude palm oil prices, interest rate policy and the reopening of the economy as well as international borders.
