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New Straits Times
30-07-2025
- Business
- New Straits Times
Bursa earnings to improve in 2H25 as market sentiment recovers, says CIMB
KUALA LUMPUR: Bursa Malaysia Bhd's earnings are projected to recover in the second half of 2025 (2H25), driven by an anticipated rebound in average daily value (ADV) and improved policy visibility stemming from ongoing US reciprocal tariff negotiations, said CIMB Securities Research. Bursa reported a second quarter (Q2) 2025 net profit of RM57.1 million, marking a 16.6 per cent quarter on quarter (QoQ) decline. The dip was primarily driven by ADV and average daily contracts (ADC) falling 15.0 per cent and 10.1 per cent QoQ, respectively, compounded by a 7.5 per cent QoQ increase in staff costs. As a result, Bursa's net profit for the first half of 2025 (1H25) stood at RM125.5 million, reflecting a 19.3 per cent year-on-year (YoY) decline. Despite the softer performance, CIMB Securities noted that the results were broadly within expectations, meeting 47.3 per cent of its full-year FY25 forecast and 45.5 per cent of the consensus estimate. "We expect earnings to improve in 2H25F, supported by a recovery in ADV as market sentiment stabilises and policy clarity emerges from the ongoing US reciprocal tariff negotiations," it said. Meanwhile, CIMB Securities noted that a dividend per share (DPS) of 14 sen was declared, translating into a 90.3 per cent payout ratio. The firm said this is in line with its full-year DPS forecast of 31.1 sen. "We expect a higher payout in 2H25, consistent with our projection of improved earnings in 2H25," it added. CIMB Securities has maintained its Hold rating on Bursa Malaysia, with an unchanged target price of RM7.40.
New Straits Times
29-07-2025
- Business
- New Straits Times
Bursa posts RM57.1mil net profit in Q2, fundraising activity still firm amid global headwinds
KUALA LUMPUR: Bursa Malaysia Bhd reported a net profit of RM57.1 million for the second quarter of 2025, from RM80.4 million in the same quarter last year. Global headwinds, including the United States' ongoing tariff negotiations with its trading partners and persistent geopolitical tensions, impacted market sentiment and weighed on equity markets. However, fundraising activity on the exchange remained strong, supporting business expansion initiatives, Bursa Malaysia chief executive officer Datuk Fad'l Mohamed said. He added that all business segments, except the securities market, recorded year-on-year revenue growth in 1H25. This highlights the importance of the exchange's strategy to diversify its income streams by strengthening offerings across various asset classes, Fad'l said. Bursa's quarterly revenue fell 13.7 per cent to RM172.6 million from RM199.9 million, mainly due to a drop in operating revenue from its securities market segment. Its revenue from the securities market contracted 21.9 per cent to RM110.3 million from RM141.4 million. In the first half of 2025 (1H25), the decline in securities market revenue was largely due to softer trading activity, with average daily trading value (ADV) for On-Market Trades falling 24.8 per cent to RM2.5 billion from RM3.3 billion in the first half of 2024 (1H24). Conversely, trading revenue from the derivatives market rose 8.1 per cent to RM56.1 million in 1H25, up from RM51.9 million in 1H24, mainly supported by higher average daily contracts traded for crude palm oil futures. The Islamic market segment also saw growth, with operating revenue increasing 23 per cent to RM11.0 million in 1H25 from RM9.0 million a year earlier, driven by stronger Bursa Suq Al-Sila' trading revenue of RM9.6 million compared to RM8.3 million in 1H24. Bursa said revenue from the data business rose 6.4 per cent to RM40.5 million in 1H25 from RM38.0 million previously. This was supported by growing licensing subscriptions amid rising demand for high-quality, actionable data in financial and sustainability sectors. The company declared an interim dividend of 14.0 sen per share for the financial year ending Dec 31, 2025, amounting to RM113.3 million, which represents a payout ratio of 90.3 per cent. Fad'l noted that Bursa Malaysia continued to top other bourses in Asean in 1H25 across three key metrics of initial public offering (IPO) - number of IPOs, total IPO market capitalisation and total IPO funds raised. On the outlook, he said Malaysia's capital market remains resilient, backed by solid economic fundamentals, supportive monetary policies, and clear government direction that is driving growth in key strategic sectors. He added that the exchange remains focused on developing Bursa Malaysia into a multi-asset exchange as outlined in its 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. "Guided by the headline key performance indicators introduced earlier this year, we will strive forward as we continue to monitor global developments and market impact," he said.
