Bursa Malaysia's Q1 net profit falls 8.8% on lower trading revenue
Revenue fell 1.5 per cent to RM184.4 million from a year earlier, as lower trading revenue and higher expenses weighed on performance, Bursa Malaysia chief executive officer Fad'l Mohamed said in a statement.
The average daily trading value on the securities market dropped nearly 12 per cent to RM2.8 billion, compared to RM3.2 billion in the first quarter of 2024. Fewer trading days – 58 versus 60 a year earlier – also contributed to the revenue decline, he said.
Trading velocity slipped to 33 per cent from 39 per cent over the same period.
'The first quarter of 2025 proved to be a challenging period for global markets, weighed down by external factors affecting equity market performance,' Fad'l said.
Bursa Malaysia chief executive officer Fad'l Mohamed notes that Malaysia's capital market remains resilient, supported by strong economic fundamentals and government policy direction. PHOTO: BURSA MALAYSIA
Still, he stressed that Malaysia's capital market remains resilient, supported by strong economic fundamentals and government policy direction, including national roadmaps for key growth sectors.
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Despite softer trading activity, Bursa Malaysia has recorded 16 initial public offerings (IPOs) so far this year, keeping it on track to meet its full-year target of 60 listings, Fad'l said.
As at Mar 31, Bursa Malaysia's market capitalisation stood at RM1.9 trillion, down 1.9 per cent from a year earlier.
Last year, Bursa hosted 55 listings that raised RM7.4 billion, making it the most active exchange by deal count in South-east Asia.
This year, market sentiment has been hit by global uncertainties. Cuckoo International and SPB Development deferred their IPO plans, citing unstable conditions.
Bloomberg also reported that advisers for South Korea's OCI Holdings have paused work on the IPO of its Malaysian polysilicon unit due to market volatility.
On Monday, the benchmark FBM KLCI closed at 1,521.59 points, 0.8 per cent higher from the previous trading day, with 2.6 billion shares traded. Year-to-date, the index has fallen nearly 7 per cent from 1,632.87 points at the start of the year.
Robust activities in derivatives market
The derivatives market provided some support, with revenue up 13.7 per cent to RM28.9 million, driven by higher trading activity in crude palm oil futures and FTSE Bursa Malaysia KLCI Futures contracts.
Revenue from the Islamic capital market rose 23 per cent year on year to RM5.5 million.
Non-trading revenue, which includes listing and issuer services as well as depository services, grew 4.9 per cent to RM66.5 million.
Bursa Malaysia's financial results note indicated that securities market activity remains sensitive to global and local factors – including US policy uncertainties, risks of escalating trade tensions, monetary policy shifts, geopolitical risks and corporate earnings performance.
'The derivatives market's activity was influenced by volatility in commodity prices, delays in Indonesia's biodiesel policy implementation, production levels in palm oil-producing nations, and movements in the broader equity markets,' said the exchange.
For Islamic markets, Bursa Malaysia noted that it remains focused on improving investor accessibility through its Islamic investing platform, and aims to attract a broader range of investors amid growing demand for ethical and syariah-compliant investments.
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