Bursa Malaysia posts weaker revenue in 1H on securities trading slump

KUALA LUMPUR: Lower trading volume on Bursa Malaysia Bhd's securities market dragged on operating revenue in the first half of 2025 (1HFY25), the stock exchange said in its results announcement today.

However, the decline in revenue from securities trading was partially mitigated by improved revenue contribution from other business segments.

“Except for our securities market, all business segments saw revenue in 1H25 rise year-on-year (y-o-y). 

"This reflects the importance of the Exchange’s strategy to diversify revenue lines by enhancing our offerings across multiple asset classes,” said Datuk Fad’l Mohamed, CEO of Bursa Malaysia, in a statement.

In the second quarter ended June 30, 2025 (2QFY25), Bursa Malaysia's net profit dropped to RM57.06mil from RM80.45mil in the previous corresponding quarter, which translated to a lower earnings per share of 7.1 sen as compared to 9.9 sen previously.

The group's revenue during the quarter dipped to RM172.58mil from RM199.94mil in 2QFY24.

For 1HFY25, Bursa Malaysia's net profit fell to RM125.48mil from RM155.48mil in 1HFY24, while revenue narrowed to RM356.96mil from RM387.14mil in the comparative period.

Apart from the lower revenue reported in the securities market, the bourse said operating expenses were also up 6.6% during the six-month period to RM189.3mil, against RM177.6mil in 1HFY24.

The board of directors declared an interim dividend of 14 sen per share with ex and payment dates on Aug 19 and Aug 27, 2025, respectively.

According to the stock exchange operator, there was a 24.8% y-o-y decline in average daily traded value (ADV) for on-market trades to RM2.5bil in 1H25, wich dragged on operating revenue in the securities market.

"Global developments, including the US' ongoing tariff negotiations with its trading partners and persistent geopolitical tensions, impacted market sentiment and weighed on equity markets," it said.

This was in contrast to the derivatives market, which saw an 8.1% y-o-y increase in trading revenue to RM56.1mil. 

The improved revenue was mainly owing to higher average daily contracts (ADC) traded for crude palm oil futures, said the Exchange, while noting the launch of Single Stock Futures in 1HFY25 to grow the derivatives business.

Meanwhile, the Islamic market recorded a 23% y-o-y increase in operating revenue to RM11mil, mainly on the back of higher Bursa Suq Al-Sila’ (BSAS) trading revenue of RM9.6mil in 1H25.

Operating revenue from the data business segment increased 6.4% y-o-y to RM40.5mil in 1HFY25 from RM38mil in 1HFY24, as a result of licensing subscriptions expansion, driven by rising demand for high-quality, actionable data across financial and sustainability domains.

Fad’l said Malaysia's capital market remains resilient and supported by strong economic fundamentals, accommodative monetary policies and clear government policies.

"We are committed to advancing Bursa Malaysia as a Multi-Asset Exchange under our Strategic Roadmap 2024–2026. 

"Our key focus areas include being the fundraising platform of choice for businesses, improving market vibrancy and liquidity, as well as exploring fresh ways to propel the data business," he said.

He added that the bourse will continue to monitor global developments and market impact with the headline key performance indicators introduced earlier this year as a guide.