KUALA LUMPUR: Bursa Malaysia Bhd's net profit decreased 59.5 per cent to RM50.13 million in the third quarter (Q3) ended Sep 30, 2022, from RM79.94 million recorded in the same quarter a year ago.
Revenue in Q3 eased 19.3 per cent to RM140.36 million.
For the nine months, Bursa Malaysia's net profit decreased 38.8 per cent to RM177.57 million from RM290.3 million, while revenue was 24 per cent lower at RM457.54 million from RM602.36 million.
In a statement today, Bursa Malaysia said the lower net profit and revenue recorded for the period were primarily caused by a decline in securities trading revenue.
Chief executive officer Datuk Muhamad Umar Swift said that as global volatility and the higher interest rate environment continue to challenge the securities market business, improvements in the performance of the derivatives market and market data businesses have helped contribute to its profit numbers during this financial period.
"We will continue to ensure that the Exchange innovates and remains agile to generate increased volumes, thus contributing to higher revenue streams in all segments of our business in this investment climate," he said.
For the current period, Bursa Malaysia's total derivatives trading revenue increased by 11.5 per cent to RM73.4 million from RM65.8 million recorded in the same period last year, contributed by higher collateral management income as well as a higher number of crude palm oil futures (FCPO) and FTSE Bursa Malaysia KLCI Futures (FKLI).
Average daily contacts (ADC) in the nine months rose 2.2 per cent with 78,540 contracts, compared to 76,836 contracts in the nine months of 2021.
Still, in the current period, Bursa Malaysia said the securities market registered a trading revenue of RM203.0 million, a decrease of 43.6 per cent compared to RM359.9 million in nine-month of 2021.
This is due to the lower average daily trading value (ADV) for the securities market's on-market trades (OMT) and direct business trades (DBT) in the nine-month of 2022 of RM2.2 billion against RM4.0 billion recorded in the same period last year.
Trading velocity during the same period was lower by 24 percentage points to 30 per cent compared to 54 per cent.
On new listings, funds raised through initial public offerings (IPOs) in the nine months totalled RM2.8 billion, higher than the RM2.3 billion raised in the same period in 2021.
Muhamad Umar said trading volume is facing strong global headwinds, but the exchange continues to actively engage with existing and potential market participants to highlight the market's value and appeal.
"To enhance the attractiveness of existing listed companies, the exchange has launched initiatives such as the Public Listed Companies Transformation Programme, the Bursa Research Incentive Scheme, Investor Relations & Public Relations Incentive Programme and the Bursa Digital Research.
"To entice domestic and foreign derivatives participants, other initiatives include a further extension of the after-hours (T+1) derivatives trading session," he added.