Bursa M’sia expects 2017 to be another challenging year
Bursa Malaysia remains focused on its role as both a frontline regulator of an efficient market and value creator for our stakeholders.
KUALA LUMPUR: Bursa Malaysia Bhd expects 2017 to be another challenging year, with prospects for global growth and trade remaining far from certain.
Chairman Tan Sri Amirsham A Aziz said however, the local bourse can draw confidence from the fact that it is making progress on the next phase of the strategic roadmap.
“The entire organisation is committed to adapting in the times of uncertainty.
“We are also encouraged by the International Monetary Fund’s 4.6 per cent growth projection for the Malaysian economy in 2017.
“Bursa Malaysia remains focused on its role as both a frontline regulator of an efficient market and value creator for our stakeholders,” he said in the company’s Annual Report 2016 released yesterday.
Amirsham said in 2016, capital markets globally experienced significant volatility amidst uncertainty over growth prospects on the back of fluctuating commodity prices, slower global growth and unexpected result of the United Kingdom’s European Union referendum that weighed heavily on global investor sentiment.
However, strong fundamentals contributed to the resilience of the Malaysian capital market.
Amirsham said the slowdown
Tan Sri Amirsham A Aziz, Bursa Malaysia chairman
in the Chinese economy also affected the equities market, while volatile commodity prices created opportunities for the derivatives market.
He said weaker market sentiment saw a reduction in the number of Initial Public Offerings (IPOs) across many regional markets, including Malaysia.
“In 2016, funds raised from eleven IPOs and the secondary market totalled RM0.6 billion and RM12.2 billion respectively, compared with RM4.1 billion and RM17.1 billion previously.
“Despite the strong headwinds, we have sustained our financial performance.
“Higher trading revenue from the derivatives market and improved revenue from the market data segment, helped cushion contraction in the trading revenue of the securities market,” said Amirsham.
He said Malaysia ranked fourth among 139 economies for Strength of Investor Protection and 30th Best Regulated Securities Market as reported in the World Economic Forum - Global Competitive Report 2016-2017.
Malaysia also ranked third among 190 economies for Protecting Minority Investors based on the World Bank – Doing Business 2017 Report.
As at Dec 31, 2016, Bursa Malaysia raised RM12.8 billion in funds, RM1.7 trillion in equity market capitalisation and 3.8 per cent in dividend yield as well as 34 sen in net dividend in 2016.
Pre-tax profit for the financial year ended Dec 31, 2016 (FY16) fell by 2.93 per cent to RM270.6 million compared with RM278.8 million in FY15.
Revenue eased by 2.26 per cent to RM506.78 million versus RM518.50 million in 2015. — Bernama