Latest news with #Fad'l
The Star
an hour ago
- Business
- The Star
Malaysia bourse sees IPO boost from Asia energy transition plan
Bursa Malaysia Bhd chief executive officer Datuk Fad'l Mohamed Malaysia's pipeline of initial public offerings is expected to get a boost from firms seeking capital for energy transition projects as Asia weans itself off fossil fuels, according to the top official at the local bourse. Some of these are large companies and "as projects actually come through, where there are sustainable cash flows and generated income, they will be looking at capital markets to IPO,' Datuk Fad'l Mohamed, chief executive officer of Bursa Malaysia Bhd ., said at the Bloomberg Sustainable Business Summit in Singapore. There are also enough investors in the market to support demand for sustainable assets, he added. The local new-share sales market has been gaining traction, with 38 new listings so far this year. Bursa Malaysia is targeting 60 IPOs for 2025, after reporting 55 debuts last year. While uncertainty from US tariffs has weighed on the stock benchmark index, making it among the world's worst performers this year, Fad'l remained optimistic on the outlook for Malaysia's markets. There'll be "a lot more liquidity coming into the system,' likely in the fourth quarter, supported by high cash holdings by local fund managers and a recent interest-rate cut by Bank Negara Malaysia, he said. A reshaping of global supply chains due to tariffs may also "open up new opportunities for partnerships or collaborations' for local companies, Fad'l said. - Bloomberg
Barnama
3 hours ago
- Business
- Barnama
Bursa Malaysia Maintains Pre-tax Profit Projection For FY2025
Bursa Malaysia Maintains Pre-tax Profit Projection For FY2025 - CEO KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia Bhd is maintaining its pre-tax profit (PBT) target of between RM369 million and RM408 million for the financial year ending Dec 31, 2025 (FY2025). Its chief executive officer, Datuk Fad'l Mohamed, said the projection remains amid strong liquidity from the domestic market and stable economic growth. He pointed out that the target is part of Bursa Malaysia's headline key performance indicator for the year and sees its earnings would potentially come from its derivatives and non-trading revenues to remain strong in the second half of its FY2025. Fad'l added that Bursa Malaysia anticipates a double-digit growth in its non-trading revenues over the next three years. 'Local investors, in particular, are noteworthy. I understand that many fund managers are currently holding cash. Data indicates that as of May, fund managers are holding approximately 11.5 per cent cash, which is the highest level since January 2024. 'We hope to see a greater level of trading activities once that cash is deployed,' he told reporters after announcing Bursa Malaysia's financial performance results for the first half of 2025 today. Fad'l said a better performance for FY2025 would also be supported with favourable aspects such as the attractive valuation of FBM KLCI, which currently stood at a discount of 17 per cent to its 10-year mean. He added that Bursa Malaysia is on track to capture 60 initial public offerings (IPOs) throughout 2025, with RM40.2 billion in total IPO market capitalisation. He added that the preemptive move undertaken by Bank Negara Malaysia to reduce interest rates by 25 basis points would bring additional liquidity to the financial system, and the FBM KLCI would have an upside from its current level of 1,530. In the first half of 2025, Bursa Malaysia recorded 32 IPOs, comprising six in the main market, 23 in ACE and three in LEAP. Meanwhile, trading activities in Bursa Malaysia are expected to recover in the second half of 2025, supported by capital deployment from funds currently holding high levels of cash. 'A lot of it will be dependent on capital flows. And I think quite clearly, for us, we see that funds are already sitting on a lot of cash. So, they will want to deploy that cash,' said Fad'l. He added that Bursa Malaysia still holds to the annual average daily trading value (ADV) consensus of RM2.6 billion. Fad'l believes that foreign funds may return to the Malaysian market as current valuations present an attractive entry point and strategic imperatives begin to take shape. He added that towards the end of last year, the bourse operator saw some movements with foreign funds that were looking to find safe havens. 'There was a lot of uncertainty towards the end of last year, including the ASEAN markets, which recorded foreign outflows. I think right now would be a good time, given where valuations are, for foreign funds to come back," Fad'l said. -- BERNAMA
The Star
15 hours ago
- Business
- The Star
Bursa sees growth in non-trading revenue
Bursa Malaysia Bhd chief executive officer Datuk Fad'l Mohamed. KUALA LUMPUR: Bursa Malaysia will continue to focus on its role as the key fundraising platform while serving as an enabler for the country's economic growth. Chief executive officer Datuk Fad'l Mohamed said key drivers would include strong cash position by fund managers looking for yield and attractive FBM KLCI valuation. The consensus expectation for FBM KLCI 2025 level is 1,664 versus the current levels of 1,530. According to him, the stock exchange has set a double-digit growth target for the next three years for the non-trading revenue segment. The segment registered an increase of 7.6% year-on-year on the back of higher contributions across all segments. 'Except for our Securities Market, all business segments saw revenue in the first half of 2025 (1H25) rise year on-year. 'This reflects the importance of the exchange's strategy to diversify revenue lines by enhancing our offerings across multiple asset classes,' he told a media briefing on the first-half financial results here yesterday. He added that Bursa would continue to maintain its guidance for the second half of the year, supported by a comeback of trading activities since there is clear and strong local liquidity from investors, particularly local investors. The local bourse has kept its 2025 pre-tax profit target of between RM369mil and RM408mil. 'We're maintaining our guidance. Ultimately, it ties back to Malaysia's economic trajectory, with gross domestic product growth for 2025 projected between 4% and 4.8%,' said Fad'l. He pointed out that local fund managers are holding record cash levels at 11.5% as of May – the highest since January 2024. 'We hope to see a greater level of trading activities once those cash are deployed. 'And I think also with the pre-emptive move undertaken by Bank Negara to reduce interest rates by 25 basis points, will bring in additional liquidity to the financial system,' he explained. He added that the initial public offering (IPO) activities are also on track, as market capitalisation more than doubled this time around compared with a year ago. 'The target is still 60 IPO's this year with RM40.2bil in total IPO market capitalisation,' Fad'l said. He noted other positive factors include government bond yields and the ringgit that had remained resilient so far. Bursa saw its net profit fall 29.07% to RM56.51mil in the second quarter ended June 30 from RM80.45mil a year ago. For 1H25, net profit declined 19.29% to RM125.48mil from RM155.48mil a year ago while revenue dropped 7.8% to RM356.96mil. 'The total operating revenue decreased 8.1% due to the lower average daily value of trades recorded, as security trading remained the largest contributor to the total at 42%. 'Derivatives trading revenue, which represents 16% of the group's total operating revenue in the first half of 2025, saw a notable increase of 8.1% year-on-year,' he said. He added that this was mainly due to the higher average daily contract of the crude palm oil (CPO) futures contracts, as there was higher volatility of the underlying CPO prices during this period. Fad'l said at the same time, operating expenses had increased 6.6% to RM189.3mil primarily due to higher staff costs and technology related expenses to support product expansion across asset classes, and capacity building, as well as an increase in administrative and building management expenses. Bursa declared a dividend of 14 sen per share for the first half, amounting to RM113.3mil corresponding to a dividend payout ratio of 90.3%.
Business Times
a day ago
- Business
- Business Times
Despite profit dip, Bursa Malaysia's IPO growth attracts Singapore firms' interest
[KUALA LUMPUR] Bursa Malaysia is emerging as a key listing venue for Singapore-based companies, even as the bourse operator reported a 19.3 per cent year-on-year (yoy) drop in net profit to RM125.5 million (S$37.8 million) for the first half of 2025. The exchange is seeing rising interest from Singapore companies seeking secondary or dual listings, buoyed by its strong performance in the Asean initial public offering (IPO) market. These developments come despite weaker overall trading volumes that have weighed on Bursa's financial performance. Fad'l Mohamed, chief executive officer of Bursa Malaysia, told a results briefing on Tuesday (Jul 29): 'We are seeing more interest from Singapore companies. One of them is UMS Integration , which will be listed on the main market... this Friday.' The high-precision engineering and manufacturing company is pursuing a secondary listing on Bursa Malaysia through an introductory route to broaden its investor base and boost stock liquidity. No new shares will be issued; instead, initial liquidity will be supported by a market-making arrangement involving shares borrowed from CEO Andy Luong. The listing's reference price will be pegged to UMS Integration's Jul 31 closing price on the Singapore Exchange, ahead of its debut on Bursa Malaysia on Aug 1. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Meanwhile, Oiltek International and Q&M Dental Group – also Singapore-based companies – have proposed secondary listings on Bursa as well. Precision manufacturing and assembly solutions provider Grand Venture Technology was also pursuing a secondary listing on Bursa's main market but halted the plan in June , despite receiving approval from Securities Commission Malaysia approval months earlier. 'Bursa Malaysia continued to top other bourses in Asean in the first half of 2025 across three key metrics of IPOs: number of IPOs, total IPO market capitalisation, and total IPO funds raised,' noted Fad'l. The exchange hosted 32 IPOs in H1, raising RM4 billion and posting a total IPO market capitalisation of RM17.4 billion. This compares with 21 IPOs and RM2.2 billion raised during the same period in 2024. According to Deloitte, Bursa Malaysia captured over 67 per cent of the IPO proceeds in South-east Asia , which overall had 53 IPOs and raised more than US$1.4 billion in H1 2025. 'We have a healthy pipeline of IPOs in the coming months and are well on track to achieve our annual target of 60 IPOs and RM40.2 billion in total market capitalisation by end-2025,' Fad'l added. Profit squeeze from lower trading activity Despite the strong IPO pipeline, Bursa Malaysia's financial results were hit by a downturn in trading activity amid global market headwinds. H1 revenue fell 7.8 per cent to RM357 million, dragged by a 15.5 per cent drop in trading revenue to RM213 million. Second-quarter net profit fell 29 per cent yoy to RM57.1 million, while revenue declined 13.9 per cent to RM172.6 million. 'Global developments, including the United States' ongoing tariff negotiations with its trading partners and persistent geopolitical tensions, impacted market sentiment and weighed on equity markets,' Fad'l explained. Securities market trading revenue dropped nearly 24 per cent to RM146.4 million, with average daily trading value down 24.8 per cent at RM2.5 billion. Trading velocity also fell to 32 per cent from 42 per cent a year earlier. Nevertheless, Bursa Malaysia declared an interim dividend of 14 sen per share, translating to a total payout of RM113.3 million, or 90.3 per cent of net profit – offering a yield of 3.7 per cent. Optimism for second half Bursa Malaysia's financial results for H1 2025 were impacted by a downturn in trading activity. PHOTO: BT FILE Despite the current conditions, Fad'l remains optimistic, anticipating improved market sentiment in the coming quarters. 'Funds are currently sitting on cash, but we anticipate they will start deploying it, capitalising on forward-looking catalysts and expected growth opportunities in 2026,' he said. He noted that the second half of the year will be the prime time for fund managers to capture the upside of 2026. 'With this elevated cash being injected into the market, it's set to propel the average daily trading value.' Citing analysts' estimates, he believes that the average daily trading value will increase to RM2.6 billion in H2. Therefore, Bursa is maintaining its 2025 profit before tax target at the RM369 million to RM408 million range, a key performance indicator. Derivatives, Islamic and data segments show growth Bursa's derivatives market revenue rose 8.1 per cent to RM56.1 million in H1, supported by active trading in crude palm oil futures. The exchange also relaunched its Single Stock Futures contracts in March with new specifications to widen its investor base. Revenue from the Islamic capital market jumped 23 per cent year on year to RM11 million, while non-trading revenue – covering listing, issuer and depository services – increased by 7.6 per cent to RM130.5 million. Data business revenue grew 6.4 per cent to RM40.5 million, driven by expanding licensing subscriptions and rising demand for high-quality, actionable financial and sustainability data. As at Jun 30, Bursa Malaysia's total market capitalisation stood at RM1.9 trillion, down 6.1 per cent from a year earlier.
The Sun
a day ago
- Business
- The Sun
Bursa Malaysia confident securities trading will pick up in second half of 2025
KUALA LUMPUR: Bursa Malaysia Bhd is optimistic that securities trading activity will improve in the second half of 2025 on the back of strong domestic liquidity and improved sentiment. CEO Datuk Fad'l Mohamed said Malaysia has 'very strong domestic liquidity', with asset managers currently holding substantial cash positions. 'So they will want to deploy that cash. We expect the second half to be more optimistic, with higher levels of ADB (average daily trading value) being traded. 'If you look at where consensus is, analyst consensus remains at about RM2.6 billion in terms of ADB. So we still hold to that,' he said at a media briefing on the group's first-half 2025 financial results today. He added that current market valuations also support the outlook for a recovery in the latter half of the year. 'Also, with valuations where they are today, we certainly are very optimistic about the market having a better second half of 2025,' Fad'l said. Securities trading contributed 42% to Bursa Malaysia's total earnings in the first half of 2025. The drop in operating revenue was largely due to a 24.8% decline in average daily value (ADV) for On-Market Trades, which fell to RM2.5 billion from RM3.3 billion a year ago. Fad'l said the decline in securities trading volume was cyclical rather than structural. 'Like every other market, quite clearly, we go through cycles of optimism and correction. We have to accept that. For us, we are clearly looking ahead,' he said. He noted that investor optimism and capital deployment in 2025 are being driven by expectations of stronger earnings recovery in 2026. 'We expect 2025 growth to be driven by forward-looking catalysts. With current valuations, this is the time when you will see capital being deployed to capture the upside in 2026,' he said. He added that this anticipated shift in sentiment and capital flows could help spark a recovery in trading activity in the near term. 'So we hope that some of the elevated cash holdings will also be channelled into the market to help propel it forward,' Fad'l said. As a result of weaker trading revenue, Bursa Malaysia posted a 19.3% drop in net profit to RM125.5 million for the first half of 2025. The stock exchange's total revenue for the first half stood at RM356.96 million, down 7.8% from RM387.14 million a year earlier. It has declared an interim dividend of 14 sen per share for the financial year ending Dec 31, 2025. This amounts to RM113.3 million, corresponding to a dividend payout ratio of 90.3%.
