Bursa Malaysia Berhad, the Malaysian stock exchange, has reported a 17.4% decrease in its profit after tax and zakat for the first quarter ended 31 March 2023 (1Q2023).
The exchange recorded a PAT of RM56.2 million in Q1 2023, down from RM68.0 million in the previous corresponding quarter (1Q2022).
The decline was primarily due to a 13.4% decrease in the Securities Market’s operating revenue to RM100.0 million in 1Q2023 from RM115.6 million in 1Q2022.
Additionally, the exchange saw a 10.6% increase in total operating expenses to RM80.2 million from RM72.5 million in 1Q2022 due to higher expenses on marketing, developmental and technology costs, and depreciation expenses.
The exchange’s average daily trading value for On-Market Trades and Direct Business Trades decreased to RM2.3 billion from RM2.7 billion in 1Q2022, leading to a decrease in trading revenue.
Meanwhile, the Derivatives Market’s operating revenue increased by 13.5% to RM28.3 million from RM24.9 million in 1Q2022, mainly due to the conference fees and exhibition-related income that increased to RM6.7 million from RM1.5 million in 1Q2022.
Trading revenue in the Islamic Market increased by 18.5% to RM4.5 million in 1Q2023 from RM3.8 million in 1Q2022, while the data business segment saw a 5.7% increase in operating revenue.
Bursa Malaysia CEO, Datuk Muhamad Umar Swift, attributed the decline in operating revenue to various macroeconomic factors and expressed optimism for Malaysia’s economic prospects amid external volatility.
The exchange had 10 IPOs in 1Q2023, double the number of IPOs recorded in 1Q2022, demonstrating confidence that companies have in Bursa Malaysia as a valuable fundraising platform.
The exchange plans to implement initiatives to improve operational and cost efficiency while introducing new offerings to enhance market vibrancy and attractiveness to investors.
Bursa Malaysia aims to meet all five headline KPIs announced earlier in January 2023, provided no unforeseen circumstances arise during the year. – BusinessNewsAsia.com