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Bursa Malaysia’s 1H2025 Report: Resilience Amidst Market Headwinds and a Dividend Treat
Bursa Malaysia, the heart of our nation’s capital market, recently unveiled its financial results for the first half of 2025 (1H2025). The report paints a mixed but fascinating picture: while profits saw a dip amidst global economic uncertainties, the Exchange’s strategic diversification is clearly paying off, and it has rewarded shareholders with a generous interim dividend. Let’s dive deep into the numbers and what they mean for the market.
Core Financials: A Closer Look at the Numbers
For the first half ended 30 June 2025, Bursa Malaysia faced a challenging environment. The headline figures show a decrease in profitability compared to the same period last year, primarily driven by lower trading activity in the securities market and a planned increase in operational spending.
1H 2025 (Current Period)
Profit After Tax (PATAMI): RM125.5 million
Operating Revenue: RM344.3 million
Basic Earnings Per Share: 15.5 sen
1H 2024 (Comparison Period)
Profit After Tax (PATAMI): RM155.5 million
Operating Revenue: RM374.5 million
Basic Earnings Per Share: 19.2 sen
The 19.3% decrease in Profit After Tax, Zakat and Minority Interest (PATAMI) can be traced back to two main factors. Firstly, operating revenue fell by 8.1%, largely due to a 24.8% drop in the Average Daily Trading Value (ADV) for the Securities Market, which settled at RM2.5 billion. This reflects the cautious sentiment among investors influenced by global geopolitical tensions and trade negotiations. Secondly, total operating expenses rose by 6.6% to RM189.3 million, a strategic move to invest in technology, product expansion, and talent.
Shareholder Payout: A Silver Lining
Despite the lower profit, the Board declared an interim dividend of 14.0 sen per share, amounting to a total payout of RM113.3 million. This translates to an impressive dividend payout ratio of 90.3%, signaling strong confidence in the Exchange’s financial health and commitment to its shareholders.
Business Segments: A Story of Diversification
As CEO Dato’ Fad’l Mohamed highlighted, the Exchange’s strategy to diversify its revenue streams is proving crucial. While the Securities Market felt the pressure, other segments demonstrated robust growth, showcasing the success of the multi-asset class strategy.
- Securities Market: Trading revenue declined due to lower market activity, which was a trend seen across many global equity markets. However, Bursa Malaysia continued to be a leader in ASEAN for IPOs, recording 32 listings that raised a total of RM4.0 billion in 1H2025.
- Derivatives Market: This segment was a star performer, with trading revenue increasing by 8.1% to RM56.1 million. The growth was driven by higher trading volumes in Crude Palm Oil Futures (FCPO) and the relaunch of Single Stock Futures.
- Islamic Market: The Islamic segment saw remarkable growth, with operating revenue surging by 23.0% to RM11.0 million, thanks to higher trading on Bursa Suq Al-Sila’ (BSAS) and a doubling of revenue from Bursa Gold Dinar.
- Data Business: Reflecting the growing demand for quality financial data, this segment’s revenue grew by 6.4% to RM40.5 million, driven by an expansion in licensing subscriptions.
Detailed Financial Breakdown
For those who love to dig into the details, here is a summary of the income statement for the first half of 2025 compared to the same period in 2024.
| Financial Item | 1H2025 (RM million) | 1H2024 (RM million) | Change (%) |
|---|---|---|---|
| Operating revenue | 344.3 | 374.5 | (8.1) |
| Total revenue | 356.9 | 387.1 | (7.8) |
| Profit from operations | 167.6 | 209.5 | (20.0) |
| Profit before tax and zakat | 167.3 | 209.2 | (20.0) |
| PATAMI | 125.5 | 155.5 | (19.3) |
Risks and Strategic Outlook
Looking ahead, Bursa Malaysia acknowledges the impact of global market sentiment but remains optimistic, citing Malaysia’s resilient economic fundamentals and supportive government policies. The Exchange is focused on its Strategic Roadmap 2024–2026, which aims to establish it as a leading Multi-Asset Exchange.
Key strategies include enhancing its role as a fundraising platform, boosting market vibrancy and liquidity, and expanding the data business. These initiatives are designed to build a more resilient and diversified business model that can thrive even when specific asset classes face headwinds.
Summary and Investment Recommendations
Disclaimer: This section provides a summary and analysis based on the published financial report. It is intended for informational purposes only and should not be construed as financial or investment advice. Readers should conduct their own research and consult with a professional advisor before making any investment decisions.
In summary, Bursa Malaysia’s 1H2025 results reflect a company in transition, navigating a tough external environment while strategically investing for the future. The decline in securities trading revenue was a significant headwind, but the impressive growth in the Derivatives, Islamic, and Data segments validates its diversification strategy. The strong dividend payout is a testament to its solid financial position and shareholder-friendly approach.
Key points for investors to monitor going forward include:
- Global Economic Climate: The performance of the core Securities Market will remain closely tied to global investor sentiment and capital flows.
- Execution of Strategy: The successful implementation of the “Multi-Asset Exchange” roadmap will be critical for long-term, sustainable growth.
- Growth Momentum: Whether the Derivatives, Islamic, and Data segments can continue their strong growth trajectory to further offset potential weakness in equities.
Final Thoughts
From my perspective as a market observer, while the headline profit decline might catch the eye, the underlying story is one of strategic resilience. Bursa Malaysia is not just passively riding market waves; it is actively building a more robust, all-weather vessel. The growth in its diversified businesses is not just a footnote—it’s the main plot of the company’s future narrative.
What are your thoughts on Bursa Malaysia’s performance? Do you believe its diversification strategy is enough to ensure consistent growth in the years to come? Share your views in the comments below!
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