KUALA LUMPUR: Bursa Malaysia Bhd recorded a net profit of RM67.97mil in the first quarter of 2022, a 44% decline from the previous corresponding quarter as securities trading revenue continued to normalise.

       The stock exchange operator reported overall revenue of RM165.3mil in the quarter under review, which was 28.84% lower than in the year-ago quarter.

       “The average daily trading value of securities continued to normalise to pre-pandemic levels which contributed to the decline in profit for the 1Q2022 compared to 1Q2021.

       "However, PAT is 4.6% higher than the fourth quarter ended 31 December 2021 of RM65mil, mainly contributed by a 2.8% higher average daily trading value registered this quarter," said CEO Datuk Muhamad Umar Swift in a statement.

       He said the securities market registered a trading revenue of RM80.4mil, a 46.7% decline from RM150.9mil in 1Q2021, owing to the lower average daily trading value (ADV) of RM2.7bil against RM5.2bil in 1Q2021.

       Trading velocity meanwhile dropped 34 percentage points to 36% compared to 70% in 1Q2021.

       However, funds raised through initial public offerings during the quarter came to RM1.5bil, which was much higher than RM200mil raise in 1Q2021.

       In the derivatives market, trading revenue rose 3.4% to RM23.3mil from the year-ago quarter due to higher collateral management fees, and despite a drop in contract numbers to 77,513 from 80,338 in 1Q2021.

       The Bursa Suq Al-Sila Islamic market also saw an increase in trading revenue, by 12.2% to RM3.8mil as a result of higher trading activity.

       Moving forward, Muhamad Umar said the better economic growth forecast and transition to the endemic phase will lead to more trading opportunities for investors, due to movements in CPO prices, interest rate policies and the FBM KLCI.

       “To ensure we sustain the interest of global investors, we will continue to enhance the attractiveness of listed issuers through initiatives such as the PLC Transformation programme launched earlier this year.

       “Further, and in line with the Sustainable and Responsible Investment and Environmental Social Governance agendas, the Exchange will continue to deliver new product and service offerings as well as the new voluntary carbon trading platform, which will enhance the breadth and depth of the ecosystem," he added.