Bursa confident positive momentum will continue
However, Tajuddin says it will not be as strong as in the first half
KUALA LUMPUR: The investment momentum in the second half of the year will not be as strong as in the first half, according to Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan.
He reckoned that the positive trend seen in the first half of the year would continue until the end of the year, driven by recoveries in several developed economies as well as more fund-raising activities from initial public offerings (IPOs).
“We think that in the second half, the positive investment momentum will continue because globally, there is recovery in some developed markets that will have a spillover effect on emerging markets.
“I believe it will continue, notwithstanding some correction in between,” Tajuddin told reporters at Bursa’s results briefing yesterday.
On whether it would be as strong as in the first half of the year, he said: “I don’t think it will reach the same level.”
Bursa Malaysia posted stellar performance for its first half ended June 30, 2017, driven by high trading activity.
The average daily trading value for the on-market trades rose to RM2.6bil in the first half of 2017, the highest since 2008.
Bursa saw its top line and bottom line improving significantly during the period.
Its net profit for the period rose 16.8% to RM116.2mil on the back of an 8.5% increase in its revenue to RM269.4mil.
Tajuddin said that the revenue for the first half of 2017 was the best first-half revenue reported since its listing in 2005.
“In terms of net profit, it was the best since 2008,” he said.
The stock exchange operator has also declared an interim and a special dividend of 20 sen per share and 15 sen per share, respectively.
“We are seeing renewed interest, especially from foreign funds which are returning to Malaysia’s capital market since the start of the year,” said Tajuddin.
He said on a year-to-date basis, net foreign inflow into Malaysia stood at RM11.2bil.
The first half of 2017 saw eight IPOs raising a total of RM3.5bil compared with five listings which raised RM400mil a year ago.
Tajuddin said there would be more IPOs coming into the market, including one major listing.
It has been reported that Bank Islam Brunei Darussalam, Brunei’s largest lender, is seeking to list its shares on the local bourse.
On the new platform to trade small firms – the Leading Entrepreneur Accelerator Platform (Leap) market – Tajuddin said Bursa is not expecting a significant revenue contribution from it.
“The Leap market is not meant for revenue generation. We have the infrastructure to work on the exchange, it would involve a huge cost to run it,” he said.
He pointed out that Bursa is working on listing the first company on the Leap exchange before the end of the year.