Bursa Malaysia's 4Q Net Profit Expected To Be Weaker On Lower Datv -- Aminvestment Bank

KUALA LUMPUR, Jan 14 (Bernama) -- Bursa Malaysia Bhd’s net profit for the fourth quarter (4Q) ended Dec 31, 2024, is expected to be weaker than that in 3Q 2024 due to a lower daily average trading value (DATV) for the securities market, according to AmInvestment Bank Bhd.

It said that 4Q 2024 DATV (of on-market transactions) for equities slipped to RM2.6 billion from RM3.6 billion in 3Q 2024.

“We expect the 4Q 2024 earnings to be RM64 million -- down 25.4 per cent quarter-on-quarter (q-o-q) -- contributed largely by lower securities market trading revenue.

 “This is expected to bring the core 12-month 2024 net profit to RM306 million, up 37 per cent year-on-year (y-o-y),” the investment bank said in a note today.

It projected Bursa Malaysia’s operating revenue for the 12 months to rise by 124.5 per cent to RM738 million, supported by improved securities and derivatives trading revenue.

Bursa Malaysia is scheduled to release its financial results for 4Q 2024 on Jan 27, 2025.

AmInvestment Bank said all headline financial key performance indicator targets for FY2024 are expected to be met.

 “Looking ahead, domestic liquidity and pipeline for initial public offerings in the securities market remain healthy. Nevertheless, challenges continue to be seen on foreign fund inflows due to the elevated interest rates in the United States (US) supporting a strong US dollar.

“Besides, there remain uncertainties on the impact of US trade and fiscal policies,” said the bank, which maintained its “hold” call on Bursa Malaysia with an unchanged target price of RM9.10 per share. 

On Bursa Malaysia’s derivatives market, AmInvestment Bank noted that the quarterly daily average contracts (ADC) traded rose by 18.1 per cent q-o-q to 107,000 contracts in 4Q 2024 contributed by a higher ADC traded for crude palm oil futures (FCPO), partially offset by a drop in ADC for FTSE Bursa Malaysia KLCI futures (FKLI).

“With the continued volatility in the market, ADC traded rose to 92,106 in FY2024 versus 72,896 in FY2023,” it said. 

It noted that foreign funds outflow of RM7.8 billion cumulatively from the securities market was recorded in 4Q 2024, compared with an inflow of RM4.4 billion in 3Q 2024.

The bank said 2024 saw an outflow of foreign funds from the securities market totalling RM4.2 billion, an increase from an outflow of RM2.3 billion in the preceding year.

-- BERNAMA