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Bursa Malaysia’s Q2 2025 Report: Navigating Headwinds with Dividend Payout
Bursa Malaysia, the heart of our nation’s capital markets, has just unveiled its financial results for the second quarter ended June 30, 2025. The report paints a picture of a company navigating significant global economic headwinds, which have impacted its core securities trading business. However, the story isn’t one-sided. Impressive growth in its Derivatives, Islamic, and Data segments showcases the strength of its diversification strategy. To top it off, the board has declared an interim dividend, a welcome sign for investors.
Let’s break down the numbers and explore what they mean for the exchange moving forward.
Core Data Highlights
A Snapshot of Q2 2025 Financials
The overall financial performance for the second quarter of 2025 reflects the challenging market conditions when compared to the same period last year. A notable decline in securities trading activity was the primary driver behind the reduced top and bottom-line figures.
Q2 2025 (Current Quarter)
Operating Revenue: RM166.7 million
Profit Before Tax (PBT): RM76.0 million
Profit Attributable to Owners: RM57.1 million
Earnings Per Share (EPS): 7.1 sen
Q2 2024 (Comparative Quarter)
Operating Revenue: RM193.8 million
Profit Before Tax (PBT): RM109.3 million
Profit Attributable to Owners: RM80.4 million
Earnings Per Share (EPS): 9.9 sen
The Group’s profit before tax saw a significant 30.4% decrease year-on-year. This was largely due to lower trading revenue from the Securities Market, which saw its Average Daily Trading Value (ADV) for on-market trades and direct business transactions fall by 39.0% to RM2.4 billion.
Segment Performance: A Story of Diversification
While the Securities Market faced a slowdown, Bursa Malaysia’s other business segments demonstrated remarkable resilience and growth, highlighting the success of its strategic diversification.
| Segment | Q2 2025 Revenue (RM million) | Q2 2024 Revenue (RM million) | Change |
|---|---|---|---|
| Securities Market | 110.3 | 141.4 | -22.0% |
| Derivatives Market | 27.3 | 26.6 | +2.5% |
| Islamic Market | 5.5 | 4.5 | +23.0% |
| Data Business | 21.1 | 19.0 | +10.7% |
The Derivatives Market posted a healthy 2.5% revenue increase, primarily driven by higher trading volumes in Crude Palm Oil Futures (FCPO) contracts. The star performers, however, were the Islamic Market and Data Business. The Islamic Market’s revenue surged by an impressive 23.0%, thanks to higher trading activity on the Bursa Suq Al-Sila’ (BSAS) platform. Similarly, the Data Business grew by 10.7%, fueled by a higher number of subscribers and fees from its new Centralised Sustainability Intelligence (CSI) solution.
Commitment to Shareholders: Dividend Declared
In a sign of confidence and commitment to its shareholders, the Board has declared an interim dividend despite the challenging quarter.
An interim single-tier dividend of 14.0 sen per share has been declared for the financial year ending 31 December 2025. The dividend will be payable on 27 August 2025, with the entitlement date set for 20 August 2025.
Risk and Prospect Analysis
The Road Ahead: Navigating Global Uncertainties
Bursa Malaysia’s performance continues to be influenced by the global landscape. The report acknowledges risks such as slowing global growth, ongoing trade negotiations, and geopolitical tensions, which can impact market sentiment and trading volumes. The World Bank’s revised 2025 growth projection for Malaysia to 3.9% underscores this cautious outlook.
However, the Exchange is actively implementing strategies to remain resilient. It expects the IPO momentum to continue in the second half of 2025, with a target of 60 IPOs for the full year. Domestically, increased investment activity and initiatives like MYBURSA are expected to support the Securities Market. Furthermore, the Exchange is focused on expanding its offerings in high-growth areas:
- Islamic Finance: Broadening the range of Shariah-compliant products to enhance market breadth.
- Derivatives: Strengthening the derivatives ecosystem and introducing new products.
- Sustainability: Driving adoption of the CSI platform and expanding offerings through the Bursa Carbon Exchange.
The management has set a headline Key Performance Indicator (KPI) for its 2025 Profit Before Tax (PBT) to be in the range of RM369 million to RM408 million, reflecting its strategic goals for the year.
Summary and Outlook
Disclaimer: The following summary is for informational purposes only and does not constitute any form of investment advice or recommendation. All investors should conduct their own due diligence.
Bursa Malaysia’s second quarter of 2025 tells a story of resilience in the face of adversity. While a slowdown in the core securities trading segment impacted overall profitability, the strong performance from the Derivatives, Islamic, and Data Business segments highlights the success of its diversification strategy. The declaration of an interim dividend further underscores a commitment to delivering shareholder value.
Looking forward, the Exchange’s journey will be influenced by global economic tides. However, its strategic initiatives—from building a robust IPO pipeline to pioneering in sustainability and Islamic finance—position it to capture future growth opportunities. This report reflects a company navigating short-term challenges while investing in long-term strategic pillars for sustainable growth.
Key points for investors to monitor:
- Global Economic Factors: Ongoing global trade negotiations and geopolitical tensions will continue to influence market sentiment and trading activity.
- Securities Market Recovery: The recovery of the Average Daily Trading Value (ADV) in the Securities Market is a critical factor for future revenue growth.
- Growth Segment Momentum: Continued expansion in the Derivatives, Islamic, and Data Business segments is essential to offset potential volatility in securities trading.
- Execution of Strategic Initiatives: Progress on the IPO pipeline, adoption of the CSI platform, and development of new products will be key indicators of long-term success.
Final Thoughts
From my perspective, this report offers a transparent view of the realities facing a modern stock exchange. The dip in securities revenue is a concern, but it reflects a broader market phenomenon rather than a company-specific failure. What is encouraging is the proactive strategy to diversify revenue streams and set clear goals for the future. The growth in the non-trading segments is a powerful testament to this forward-thinking approach.
What are your thoughts on Bursa Malaysia’s performance this quarter? Do you think its diversification strategy is robust enough to navigate the current economic climate?
Share your insights and join the conversation in the comments below!
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