Bursa still on track to achieve target of 60 IPOs

PETALING JAYA: Facing a challenging global market environment, Bursa Malaysia Bhd reports a first-quarter (1Q25) net profit of RM68.42mil, down from RM75.03mil in 1Q24.

Revenue was also slightly lower, at RM184.38mil against RM187.2mil in the same period last year.

Earnings per share slid to 8.5 sen from 9.3 sen previously.

Bursa Malaysia’s total operating expenses increased 6.7% to RM92.9mil in 1Q25 mainly due to higher technology expenses and subscription costs associated with the Centralised Sustainability Intelligence platform, which was launched in June 2024.

Bursa Malaysia chief executive officer Datuk Fad’l Mohamed noted that external factors had impacted equity markets in 1Q25.

“The 1Q25 proved to be a challenging period for global markets, weighed down by external factors affecting equity market performance.

“Notwithstanding the headwinds, Malaysia’s capital market remains resilient, supported by strong economic fundamentals and the government’s clear policy direction, supported by outlined national roadmaps in key growth areas,” he said in a statement.

He added that the 16 initial public offerings (IPO) on the market to-date were promising, and puts the exchange on track to meeting its full-year target of 60 IPOs.

Bursa Malaysia reported a smaller securities turnover in 1Q25.

The average daily trading value for on-market trades and direct business trades declined 11.9% to RM2.8bil in 1Q25 from RM3.2bil in 1Q24.

Trading velocity also fell by six percentage points to 33%, with two fewer trading days in 1Q25 compared to 1Q24, which contributed to the decrease in operating revenue.

The securities market’s operating revenue dipped 7.2% to RM114.3mil compared to RM123.1mil in 1Q24.

On the other hand, the derivatives market saw a 13.7% increase in trading revenue to RM28.9mil in 1Q25, underpinned by an increase in average daily contracts traded for crude palm oil futures.

There was also a 12.1% increase in revenue contribution from conference and exhibitions to RM7.1mil, driven by the higher number of participants at the Palm and Lauric Oils Price Outlook Conference and Exhibition.

Operating revenue from the Islamic market jumped 23% year-on-year to RM5.5mil, mainly owing to higher Bursa Suq Al-Sila trading revenue.

Revenue from Bursa Gold Dinar improved to RM600,000 in 1Q25 from RM200,000 in the year-ago quarter, while the data business segment posted a 2.1% increase in operating revenue to RM19.4mil.