Bullish market but caution is advised on potential risks with the looming threat of a US recession and geopolitical tensions while "Investors tread cautiously"
Bursa Malaysia’s earnings for the first quarter of 2024 exceeded expectations, mainly due to higher revenues from trading activities and other services. Bursa’s Strong Performance is here explained.
Because of the positive momentum expected to continue, analysts have raised their earnings forecasts for Bursa Malaysia for the years 2024, 2025, and 2026.
Bursa chief executive officer Datuk Muhamad Umar Swift notes that the exchange had started the year on a firm footing, drawing upon the positive momentum of the past year.
He says the average daily trading value (ADV) for the securities market’s on-market trades (OMT) continues to grow, rising by 36.9 per cent y-o-y to RM2.9 billion from RM2.1 billion in 1Q 2023, substantially contributing to a higher operating revenue this quarter.
“While key economic indicators are pointing towards a brighter outlook for the Malaysian economy, the ongoing global and local developments will continue to influence the volatility and performance of the securities and derivatives markets.
“We have been working closely with other regulators to ensure market efficiency and improved market accessibility and liquidity to support participants during this period,” he said.
Bursa Malaysia’s net profit increased by 34% year-over-year in the first quarter of 2024, driven by higher trading revenues in both equity and derivatives markets, as well as increased revenues from non-trading services.
Non-trading revenue also rose (+12% YoY, +16% QoQ) as revenue from listing & issuer services, depository services, and market data rose. Opex growth trailed top-line growth and this was mainly due to higher staff and IT co
Factors Driving Future Growth
Analysts expect trading activities to remain robust in the future due to initiatives launched by the government and improved corporate earnings. This leads to higher revenue projections for Bursa Malaysia in the coming years.
Company’s Goals for 2024
Bursa Malaysia has set specific targets for 2024, including achieving a certain level of profit before tax, increasing non-trading revenue, facilitating a certain number of initial public offerings, and reducing emissions. These goals reflect the company’s commitment to growth and sustainability.
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