kuala lumpur: Bursa Malaysia Bhd is optimistic that it can achieve its pre-tax profit target of RM361 million-379 million for the financial year ending Dec 31, 2024.
Bursa Malaysia chairman Tan Sri Abdul Wahid Omar also expressed confidence that the bank would achieve 42 initial public offerings (IPOs) this year.
“We have conducted 28 IPOs so far and the new IPO market this year has seen robust growth, so we are confident of achieving our IPO target this year. We are introducing new asset classes into the stock market to support traditional businesses and attract more investors,” he told reporters after announcing Bursa Malaysia’s first-half results today.
He said market signals indicate that investor sentiment is rooted in positive fundamentals, and Bursa Malaysia is expected to experience robust growth in 2024.
“According to the latest estimates from the Department of Statistics Malaysia, Malaysia’s GDP is expected to expand by 5.8 percent in the second quarter of this year, signaling higher growth and growing interest from global investors in the country’s ongoing reform efforts.”
“This interest is likely to have a positive impact on market momentum and stimulate capital markets activity.
“As Malaysia’s economic conditions are expected to remain favorable, we are optimistic that Bursa Malaysia’s performance in the second half of the year will reflect positive results,” Abdul Wahid said.
Bursa Malaysia said its net profit for the second quarter ended June 30 (2QFY24) rose to RM80.44 million from RM76.24 million a year ago. Quarterly revenue rose to RM199.94 million from RM144.59 million a year ago.
Transaction volume in the second quarter of 2024 increased 81.3% to RM104.8 million from RM57.8 million in the same period last year.
The increase was mainly due to an increase in the average daily transaction value (ADV) of market transactions. Direct business transactions increased 105.3% to RM3.9 billion in 2Q24 from RM1.9 billion in 2Q23.
Deposit services revenue increased 14.9% to RM15.9 million in 2Q2024 from RM13.8 million in 2Q2023, mainly due to an increase in account opening fees.
The Islamic market recorded a segment profit of RM1.3 million in 2QFY24, down 48.2% from RM2.5 million in 2QFY23, mainly due to higher operating expenses.
For the first half of 2024 (H1’24), Bursa Malaysia announced a net profit after zakat and minority interests of RM155.5 million, up 17.4% from RM132.4 million in H1’23.
Total revenue from derivatives trading increased 16.8% to RM51.9 million in 1H24 from RM44.5 million in 1H23. This was mainly due to an increase in trading volume in Crude Palm Oil Futures and FTSE Bursa Malaysia KLCI Futures contracts as well as higher collateral management fees earned in 1H24.
The average number of daily contracts in the derivatives market increased by 13.6% from 74,735 in the first half of 2023 to 84,927 in the first half of 2024.
Bursa Malaysia’s board of directors said it would pay a dividend of 18 sen per share by the end of this month.
Bursa Malaysia CEO Datuk Muhammad Umar Swift said Malaysia’s capital market had begun the year performing well in the first half of 2024, hitting several record highs, despite continued external macroeconomic headwinds.
He said these included market capitalisation reaching a record high of over RM2 trillion in May this year and the FBM KLCI breaking through the psychological threshold of 1,600 points to hit a three-year high.
“Trending in the securities market is active and is contributing significantly to the performance of the exchange.”
“Given the current economic situation and improving market sentiment, we are optimistic that this positive momentum can be sustained.
“We are committed to enhancing the attractiveness of Bursa Malaysia to create value for shareholders while promoting economic growth,” he said.