Bursa Malaysia records RM377.7 mln PATZAMI for FY2020

The amount is a 103.2 per cent increase from RM185.9 million reported in the previous financial year ended Dec 31, 2019 (FY2019).

The higher PATZAMI was due to improved performance in the Securities and Derivatives Markets, which recorded a higher operating revenue of RM778.8 million from RM480.1 million in FY2019, an increase of 62.2 per cent.

It is Bursa Malaysia’s highest full-year financial results since its listing in 2005.

Meanwhile, total operating expenses in FY2020 increased by 18.5 per cent to RM291.8 million from RM246.2 million in FY2019, mainly due to higher staff costs, information technology maintenance costs and professional fees.

Chairman Tan Sri Abdul Wahid Omar said despite the ongoing health and economic challenges, most capital markets with strong domestic liquidity such as Malaysia have benefited from the increased presence of domestic retail investors.

“Aided by the convenience of online broking and conducive low-interest-rate environment, the Average Daily Trading Value (ADV) of securities doubled from RM1.93 billion in FY2019 to RM4.21 billion in FY2020.

“Our ability to handle the significant increase in volume and achieve this exceptional financial performance is a testament to the steadfast and unwavering commitment we have made through continued investment in our growth initiatives,” he said in a virtual press conference on Bursa Malaysia’s FY2020 financial performance.

He said Bursa Malaysia’s commitment provided a solid foundation and contributed to the resilience of the Malaysian capital market which has been one of the strongest in the ASEAN region.

“The benchmark FBMKLCI ended the year 2.4 per cent higher at 1,627.21, one of the best performing equities markets in ASEAN, reflecting the confidence and sentiment of investors in our market,” he noted.

Chief executive officer, Datuk Muhamad Umar Swift said despite the global health pandemic, Malaysian equities has demonstrated resilience.

“The continued operation of our markets has helped preserve the flow of capital in our economy to meet the needs of businesses and individuals alike. Retail investors have had a positive impact on improving liquidity and depth,” he said.

According to him, in FY2020, retail ADV increased by 236 per cent to 1.6 billion, the highest in Bursa Malaysia’s history.

“Improved financial literacy among retail investors demonstrates the increased effectiveness of our outreach programmes in recent years.”

He noted that 65 per cent of the total central depository system (CDS) accounts opened were by millennials (age 25-40 years).

“The increase of millennial investors is a positive development for the long-term sustainability of the market, as they are key drivers of socially responsible investing,” he added.

He said the ongoing developments surrounding the pandemic continued to drive investment flows, higher market activity in the Securities and Derivatives Markets, and increased demand in services.

Abdul Wahid said while Bursa Malaysia is hopeful for the year ahead, uncertainties continue to linger in the global and domestic markets.

“The exchange aims to build a sustainable momentum by driving the sustainability agenda, with renewed focus to help deliver equitable growth for all stakeholders. This is reflected in our refined vision to be ASEAN’s leading, sustainable and globally-connected marketplace.

“We will be implementing a three-year strategic framework that is future-focused and embeds sustainability in our organisation and offerings. We have also pledged to contribute 1.0 per cent of our profits after tax for FY2020 towards community projects that will have a positive change and benefit society.”

Abdul Wahid added that the contribution was inclusive of the inaugural RM667,000 zakat provided by Bursa Malaysia in FY2020.

Muhamad Umar said moving forward, Bursa Malaysia will focus on developing and growing the Islamic Capital Market by promoting Shariah-compliant stocks and introducing new Islamic products and services such as Waqaf exchange-traded fund (ETF) and Hibah.

“We are also looking to forge new partnerships to grow the exchange’s non-traditional revenue stream. One such area is through data collaboration with various players, allowing the exchange to expand our datasets beyond market data.

“Creating enriched datasets will help facilitate Bursa Malaysia into a sustainable and attractive ecosystem, beyond a traditional exchange marketplace,” he said.

Additionally, he said, the board of directors has approved and declared a final dividend of 26.0 sen per share and a special dividend of 8.0 sen per share for FY2020, amounting to approximately RM210.3 million and RM64.7 million, respectively.

“This brings the total dividend payout for FY2020 to 51.0 sen per share, 145 per cent higher than the total dividend of 20.8 sen per share paid in respect of the previous FY2019,” he added.