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Bursa Malaysia’s 1H 2025 Results: Navigating Headwinds with Strategic Resilience
Bursa Malaysia, the nation’s stock exchange operator, has just released its financial results for the first half of 2025. While the headline numbers show a dip in profits amidst a challenging global environment, a closer look reveals a story of strategic diversification and resilience. Despite a slowdown in the securities market, the Exchange declared a generous interim dividend of 14.0 sen per share, signaling confidence to its shareholders. Let’s dive deep into the numbers and what they mean for the Malaysian market.
Core Financial Performance: A Mixed Picture
The first half of 2025 saw Bursa Malaysia’s overall financial performance impacted by softer trading activities in the equity market. This was largely influenced by global factors, including ongoing trade negotiations and geopolitical tensions that dampened investor sentiment.
The company reported a Profit After Tax, Zakat and Minority Interest (PATAMI) of RM125.5 million, a decrease of 19.3% from the previous year. This was primarily driven by a decline in operating revenue and a simultaneous increase in operating expenses.
PATAMI (1H 2025)
RM125.5 million
PATAMI (1H 2024)
RM155.5 million
Operating Revenue (1H 2025)
RM344.3 million
Operating Revenue (1H 2024)
RM374.5 million
Operating expenses rose by 6.6% to RM189.3 million, attributed to higher staff costs and technology investments aimed at supporting product expansion and enhancing capacity. Consequently, basic earnings per share (EPS) stood at 15.5 sen, down from 19.2 sen in the corresponding period last year.
Segment Performance: A Tale of Two Markets
The report highlights a crucial aspect of Bursa Malaysia’s strategy: revenue diversification. While the traditional Securities Market faced headwinds, other segments demonstrated robust growth, showcasing the success of the Exchange’s multi-asset strategy.
Securities Market
The Securities Market saw its operating revenue decline, mainly due to a 24.8% drop in the Average Daily Trading Value (ADV) for on-market trades, which fell to RM2.5 billion. However, a significant bright spot was the fundraising activity. Bursa Malaysia led ASEAN exchanges in the first half of the year in terms of the number of IPOs (32), total funds raised (RM4.0 billion), and total IPO market capitalisation (RM17.4 billion).
Derivatives, Islamic, and Data Segments Shine
In contrast to the securities segment, other business units posted impressive year-on-year growth:
| Business Segment | 1H 2025 Revenue | 1H 2024 Revenue | Growth | Key Drivers |
|---|---|---|---|---|
| Derivatives Market | RM56.1 million | RM51.9 million | +8.1% | Higher trading in Crude Palm Oil Futures (FCPO) and relaunch of Single Stock Futures. |
| Islamic Market | RM11.0 million | RM9.0 million | +23.0% | Increased trading on Bursa Suq Al-Sila’ (BSAS) and doubling of revenue from Bursa Gold Dinar. |
| Data Business | RM40.5 million | RM38.0 million | +6.4% | Growing demand and expansion of licensing subscriptions for high-quality financial and sustainability data. |
As CEO Dato’ Fad’l Mohamed noted, “Except for our Securities Market, all business segments saw revenue in 1H2025 rise year-on-year. This reflects the importance of the Exchange’s strategy to diversify revenue lines by enhancing our offerings across multiple asset classes.”
Risks and Strategic Outlook
Bursa Malaysia acknowledges the impact of global uncertainties on market sentiment. However, the management remains optimistic about the resilience of Malaysia’s capital market, supported by strong domestic economic fundamentals and clear government policies fostering growth in strategic sectors.
The Exchange is committed to its Strategic Roadmap 2024–2026, focusing on becoming a “Multi-Asset Exchange.” Key priorities include:
- Enhancing its position as the preferred fundraising platform for businesses.
- Improving market vibrancy and liquidity.
- Expanding the data business through innovative solutions.
These initiatives, guided by transparent Key Performance Indicators (KPIs), are designed to navigate market fluctuations and drive long-term, sustainable growth.
Summary and Investment Recommendations
Bursa Malaysia’s 1H 2025 results present a narrative of resilience amidst adversity. The decline in net profit reflects the cyclical nature of the securities market, which was impacted by global economic pressures. However, the strong performance in the Derivatives, Islamic, and Data segments validates the Exchange’s diversification strategy. The continued leadership in ASEAN’s IPO market and a healthy dividend payout demonstrate underlying strength and a commitment to shareholder returns. While short-term profitability is under pressure, the strategic initiatives to build a multi-asset exchange lay a solid foundation for future growth.
Investors should consider the following key factors and risks:
- Market Volatility: The performance of the Securities Market, a major revenue contributor, remains highly sensitive to global economic conditions and investor sentiment.
- Rising Costs: Increased operating expenses, while necessary for strategic growth and technology upgrades, are currently compressing profit margins.
- Execution of Strategy: The success of the “Multi-Asset Exchange” roadmap depends on the effective execution of plans to boost liquidity and expand new product offerings.
Final Thoughts
From a professional standpoint, while the dip in profit is a key headline, the more important story is the structural shift happening within Bursa Malaysia. The growth in non-trading revenue streams is creating a more balanced and resilient business model that is less dependent on equity market sentiment alone. This strategic pivot is crucial for long-term stability and growth.
What are your thoughts on these results? Do you think Bursa Malaysia’s diversification strategy is potent enough to fuel growth in the coming years?
Share your views in the comments below! And if you found this analysis helpful, consider reading our other articles on Malaysian market trends.
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