PETALING JAYA: Bursa Malaysia Bhd’s net profit fell 12.1% to RM45.56 million in the fourth quarter ended December 31, 2019 (Q4 19) from RM51.86 million reported in the same quarter of the previous year, mainly due to higher staff costs and operating expenses.
Revenue for the period improved marginally by 0.3% to RM129.33 million from RM128.92 million.
Its board of directors has approved and declared a final dividend of 10.4 sen per share for FY2019, amounting to about RM84.1 million, which is payable on February 28.
Bursa’s securities market segment recorded a profit of RM74.8 million for the quarter, a 2.6% decline from RM76.8 million reported previously, mainly due to higher operating expenses.
The derivatives market reported a segment profit of RM11.5 million, a marginal 0.9% increase from RM11.4 million reported in Q4 18, attributed to an increase in revenue despite higher operating expenses.
Its exchange holding company recorded a higher segment loss of RM5.4 million in Q4 19, mainly due to the recognition of an impairment loss allowance on computer software of RM3.3 million.
For the financial year ended December 31, 2019, Bursa reported a net profit of RM185.86 million, a 17% drop from RM224.04 million a year ago, while revenue was down 8.6% to RM502.49 million from RM550 million.
Its CEO Datuk Muhamad Umar Swift said that following a long period of strong growth, 2019 proved to be relatively challenging.
“Despite this, Malaysia continues to demonstrate long-term growth and offers compelling investment opportunities,” he said in a press statement.
Muhamad Umar highlighted that in 2019, the energy, construction and technology sectoral indices had performed positively, growing by 51%, 34% and 29% respectively.
He said the positive trend amongst small and mid-cap counters are also opportunities for investors to build upon.
“In 2019, Bursa Malaysia ranked second in Asean for the number of listings, testament to our strong fund-raising capabilities.”
He also noted the growing retail participation at 24.5% last year, a record high in the last five years.
For the year ahead, Bursa expects greater volatility in both the securities and derivatives markets arising from global and local developments such as the ongoing US-China trade negotiations and the recent novel coronavirus outbreak.
“Barring any unforeseen circumstances, the exchange is expected to benefit from this volatility which will provide greater activity in the respective markets. The exchange will continue to expand and strengthen its products and service offerings to enhance the market attractiveness and vibrancy.”
At the midday break, Bursa’s share price was 2 sen lower at RM5.84 on 226,000 shares done.
