Bursa Malaysia's Net Profit Decreased! This Is What Really Happened


'Usually in the middle of the year, this stock trade is less active.'

Bursa Malaysia Bhd's 3rd quarter earnings report ending 30 September 2022 (Q3 FY22) saw a decline of 37%.

Looking at the published report, its net profit decreased by 37.3% at RM50.13 million from RM79.94 million for the same period last year due to low securities trading revenue.

It was explained that operating income for the Bursa securities market segment declined from RM140.7 million to RM100.4 million which brought a 34.9% year-on-year profit contraction at RM76.5 million.

It indirectly also pulled down segment profit in the quarter by 26% at RM94.6 million from RM127.9 million.

Touching on the company's revenue, the total fell from RM173.98 million to RM140.36 million with trading revenue declining 40.5% year-on-year at RM55.8 million.

It was underlined that the decline occurred when the Bursa's daily trading value for the investor market and business investment continued to fall by 42.1% year-on-year at RM1.75 million this quarter.

Overall, for the last 9-month financial period, Bursa's net profit fell 38.8% year-on-year to RM177.57 and revenue decreased 24% to RM457.54 million.

Meanwhile, Bursa Malaysia Bhd shares were seen falling during the early morning trading session with the counter down 1.4% (9 sen) at RM6.36 while 54,500 shares changed hands as of 10am.

Even so, Kenanga Investment Bank Bhd comments that Q4 will record a strengthening since there is a general election which is expected to increase the average daily volume of purchases.

The basis was reached based on previous history which saw an increase in trading activity ahead of the last general election.