Bursa Malaysia Quarterly Net Rises 30% on Trading Volume

Bursa Malaysia Bhd. (BURSA), the country’s stock exchange operator, said second-quarter profit increased 30 percent as government efforts to spur economic growth bolstered trading volumes.

Net income in the three months ended June 30 climbed to 35.7 million ringgit ($12 million), or 6.7 sen a share, from 27.5 million ringgit, or 5.2 sen a share, a year ago, the Kuala Lumpur-based company said in a statement today. Sales advanced 20 percent to 101.1 million ringgit, it said.

“The acceleration in the implementation of various government transformation programs and prospects for greater merger and acquisition activities remain immediate key domestic market drivers,” Bursa said. “Malaysia’s strong economic and corporate fundamentals will provide support to the securities market amidst the external uncertainties.”

The average daily trading volume on the Southeast Asian nation’s stock exchange rose 26 percent to 993.7 million shares in the second quarter, compared with 787.6 million shares in the same period a year earlier, according to data compiled by Bloomberg. The benchmark FTSE Bursa Malaysia KLCI (FBMKLCI) Index climbed 2.2 percent in the second quarter, a fourth straight increase.

Malaysia’s Transformation

Malaysia aims to double the size of its capital markets by 2020 as the government eases regulations and divests state companies to draw investors, Prime Minister Najib Razak said on April 12. In September, Najib’s government identified $444 billion of private-sector led projects this decade, ranging from mass rail to energy and pledged to transform the country into a developed economy by 2020.

Revenue from trading in equities climbed 25 percent in the period to 46.1 million ringgit, Bursa said today. Derivatives trading revenue advanced 36 percent to 12.3 million ringgit, it said. The company declared an interim dividend of 13 sen per share, compared with 9.5 sen a year earlier, it said.

The bourse’s shares dropped 1.2 percent to 7.54 ringgit at the 12:30 p.m. local-time break, before the release of the results. The stock has fallen 3.3 percent this year, compared with a 2.4 percent gain in the benchmark stock index.

Bursa is targeting profit to grow at least 20 percent per annum on average over the next three years, the company said in a separate e-mailed statement today.

The bourse plans to engage with foreign and local investors, it said.

To contact the reporter responsible for this story: Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net

To contact the editor responsible for this story: Darren Boey in Hong Kong at dboey@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.