24
9M2018 Financial Results 29 October 2018
9M2018 Financial Results
29 October 2018
2
Agenda
Key Financial Highlights & Market Performance
Financial Review
Highlights & Conclusion
Appendices
3
Key Financial Highlights & Market Performance
Financial Highlights for 9M2018
9 Months Financial Trend
Securities Market Overview
Derivatives Market Overview
Islamic Capital Market Overview
4
Financial Highlights for 9M2018
Operating revenue increased mainly due to higher Securities Trading revenue. The
increase was partially offset by lower trading revenue from Derivatives Market.
Cost to income ratio maintained at 44% while ROE improved by 1 percentage point to
28%.
9M2018 vs. 9M2017:
Financial Items 9M2018
9M2018
vs.
9M2017
3Q2018
3Q2018
vs.
3Q2017
Operating Revenue (RM million) 402.3 2.6% 123.2 0.4%
Operating Expenses (RM million) 184.2 0.1% 60.7 2.8%
PATAMI (RM million) 172.2 2.6% 50.2 2.7%
EPS (sen) 21.3 2.4% 6.2 3.1%
Cost to Income Ratio (%) 44% 47%2 percentage
points
Annualised ROE (%) 28%1 percentage
point 24%
5
9 Months Financial TrendHighest operating revenue since listing
Operating Revenue
(RM mil)
PATAMI
(RM mil)Cost to Income
Ratio (%)ROE (%)
293.9
335.9 351.6 362.5 360.2
392.1 402.3
114.8
139.2 145.1 148.0 143.5 167.8
172.2
9M2012 9M2013 9M2014 9M2015 9M2016 9M2017 9M2018
4845 46 46 47
44 44
18
2326 26
2427 28
6
Securities Market OverviewHighest ADV since listing
32
34
1,845 1,835
9M2017 9M2018
0.5%
Average Daily Value (“ADV”)
(OMT)(RM mil)Market Capitalisation (RM bil) Fund Raised from New Listings
& Secondary Market (RM bil)
1,284 1,314
539 569
490 674
9M2017 9M2018
2,313
2,557
Velocity (%)
1,756
1,793
FBMKLCI
7.4
0.6
10.6
4.5
9M2017 9M2018
No. of New Listing (including LEAP
Market)
Fund raised from new listings
Fund raised from secondary market
ADV of Domestic Institutions
ADV of Retail
ADV of Foreign Institutions Market Capitalisation
10
16
71.7%
10.5%
5.1
18.0
7
ADC - Crude Palm Oil Futures
Volatility of Crude Palm Oil
Prices
Derivatives Market OverviewFCPO trades influenced by the volatility of the underlying
ADC - OthersADC – FBMKLCI Futures
Volatility of FBMKLCI
Average Daily Contracts (“ADC”)
& VolatilityOpen Interest (No. of Contract)
8,636 10,417
49,943 43,644
238
1,718
9M2017 9M2018
18% 14%
5%9%
85%
15%
78%
19%
5.2%
55,779
58,817
3%
28 Aug
2018
317,788
1 Sept 2010
111,548
31 Jan
2017
221,138
30 Sept
2018
306,375
8
Islamic Capital Market OverviewHigher foreign trades under volume-based pricing
No. of Shariah Compliant
Stocks (%)
No. of Trading Participants
Bursa Suq Al-Sila’ (“BSAS”)
ADV (RM bil)
Market Capitalisation of
Shariah Compliant Stocks
(RM bil)
No. of Sukuk
Value of Listed Sukuk (USD bil)
Domestic ForeignMarket Capitalisation of
Shariah Compliant Stocks
Domestic Foreign
14.8 15.5
4.1
6.0
9M2017 9M2018
18.9
21.5
13.9%
135
160
24.8 25.0
30.6 30.7
30 SEPT 2017 30 SEPT 2018
55.4 55.7
25 25
0.5%1,145 1,144
30 SEPT 2017 30 SEPT 2018
0.1%
75%76%
9
Financial Review
Financial Snapshot
Operating Revenue
Operating Expenses
10
122.6 123.2
392.1 402.3
3Q2017 3Q2018 9M2017 9M2018
2.6%
Financial SnapshotHighest 9-month PAT since 2007 and highest operating revenue
since listing
Operating revenue (RM mil) Operating expenses (RM mil)
PATAMI (RM mil) Cost to income ratio (%)
0.4%
59.1 60.7
183.9 184.2
3Q2017 3Q2018 9M2017 9M2018
2.8%
45
47
44 44
3Q2017 3Q2018 9M2017 9M2018
2 percentage
points
0.1%
51.6 50.2
167.8 172.2
3Q2017 3Q2018 9M2017 9M2018
2.7%
2.6%
11
Operating RevenueGrowth mainly contributed by higher Securities Trading Revenue
Increase in Securities Trading Revenue from higher ADV-OMT.
Decrease in Derivatives Trading Revenue due to lower number of FCPO contract
traded and guarantee fees earned, as well as higher market incentives incurred in
9M2018.
Lower BSAS Trading Revenue despite increase in its ADV due to volume-based
pricing.
Higher Market Data due to higher number of subscribers.
(RM mil)
Total
RM402.3mil
Total
RM392.1 milGrowth contribution by revenue streams:
392.1
402.3
9M2017 9M2018
Securities Trading Revenue
Derivatives Trading Revenue
Listing & Issuer Services
Depository Services
Market Data
Member Services & Connectivity
BSAS Trading Revenue
Conference Fee & Exhibition Related Income
195.0 207.7
60.557.6
11.710.8
45.445.2
31.431.8
26.027.3
16.116.46.0
5.5
9M2017 9M2018
2.6%
+12.7 -2.9-0.9 -0.2 +0.4 +1.3 +0.3 -0.5
6.5%
4.8% 7.4% 0.4% 1.2% 4.8% 1.8% 7.9%
12
Total
RM183.9 milTotal
RM184.2 mil
Operating ExpensesFairly stable y-on-y with a marginal increase of 0.1%
Note^ - Other operating expenses include building maintenance, administrative expenses and CDS expenses.
Increase in staff cost due to annual salary increment, provision for variable staff
costs and higher manpower.
Decrease in Globex fees due to lower number of derivatives contracts traded.
Lower depreciation as some IT assets are fully depreciated
Staff costs
Depreciation & amortisation
Marketing & development
IT maintenance
Service fees
Other operating expenses^
100.2 106.4
18.016.5
8.17.7
14.514.2
18.5 15.4
24.6 24.0
9M2017 9M2018
0.1%
(RM mil)
Movement of expenses:
183.9 184.2
9M2017 9M2018
6.2%
8.2% 4.5% 2.3%
16.7%2.4%
+6.2 -1.5
-0.4 -0.3 -3.1
-0.6
13
Highlights & Conclusion
Highlights of 9M2018 Initiatives
Moving Forward
14
Highlights of 9M2018 Initiatives
Create a More Facilitative
TRADING ENVIRONMENT
SI 1
REGIONAL MARKETPLACE
with Global Access
(Centre of ASEAN)
Launched BURSASUSTAIN, a comprehensive online portal designed as a one-
stop knowledge and information hub on corporate governance and
sustainability.
Launched the “Invest Bursa, Invest in You” campaign.
Facilitate More
TRADABLE ALTERNATIVES
Implementation of Intra Day Short Selling (IDSS) for all investors.
Introduced enhanced US Dollar denominated Palm Olein Futures Contract.
Introduction of a new category of traders known as “trading specialists” who
trade on their own account.
Launched the Mini FTSE Bursa Malaysia Mid 70 Index Futures Contract (FM70).
Exemption of stamp duty on shares of mid and small cap companies traded on
Bursa Malaysia for 3 years from Mar’18 – Feb’21.
Waiver on trading and clearing fees for 6 months for new individual investors.
Enhancements of FCPO contract.
Liberalisation of margin financing rules.
Introduction of volume-based incentive programme.
Announced new sector classification and sectorial index series.
Reshape
MARKET STRUCTURE &
FRAMEWORK
SI 2
SI 3
SI 4 Organised the Palm and Lauric Oils Price Outlook Conference & Exhibition
2018.
Organised the Shariah Investing Fair 2018.
15
Moving Forward
SECURITIES MARKET• The Securities Market is expected to be resilient, given the sound economic fundamentals and anticipated
growth momentum.
• Trading volatility is expected to continue in the last quarter of 2018 and will be influenced by external and
domestic events.
DERIVATIVES MARKET• Recent broader price range and volatility in crude palm oil prices are expected to stimulate trading and hedging
activities in FCPO and US Dollar-denominated FPOL contracts.
• The recently introduced FTSE Bursa Malaysia Mid 70 Index (FM70) mini-futures contract which complements the
existing FKLI contracts, has seen encouraging trades in September 2018 and is expected to attract broader
investor participation going-forward.
ISLAMIC CAPITAL MARKET• Bursa Malaysia expects to see increased participation of institutional investors to trade on the Bursa Malaysia-i
platform whilst the promotion of Shariah-compliant investing will continue through engagements with market
players and retail investors.
• Bursa Suq Al-Sila’, on the other hand will continue to expand its global reach into selective African and Central
Asian regions in 2018.
Bursa Malaysia will continue with its initiatives to enhance the breadth and depth of the ecosystem. Despite the
slower growth projected for global and domestic economy in 2018, the Exchange expects to achieve a sustainable
performance for the current financial year.
16
Appendices
Securities Market Trading Activity
Securities Market Trading Participation
Securities Market Foreign Ownership
Foreign Inflow/Outflow
Derivatives Market Activity
Derivatives Market Demography
Islamic Capital Market Activity
17
2,161
1,579 1,732
1,341
1,841
1,439 1,595
1,430 1,643
2,308
2,002
1,686
2,068 2,053 2,196
1,901 2,081
1,913 1,933 2,042 1,981
1,842 1,740 1,690
2,378
2,621
1,951
2,316
2,716 2,730
2,227
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
42
3034
27
34
27 2825
28
3731
2530 29 30 28 30 28 29 30 29 27 26 25
34 35
2631
35 37
30
34 34 33 3328 30 29 30
2732
34
1,181 1,129 1,454
1,699 1,573 1,915
2,053 1,991 1,812
2,314 2,557
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9M18
Turnover Velocity (%)
Quarterly ADV Traded & Velocity
Average Daily Value Traded (RM mil)
Average Daily Value Traded (RM mil)Turnover Velocity (%)
Annual ADV Traded & Velocity
Securities Market Trading Activity
18
283
369 392 442
354 424
530
464
372
525 569
7667 73 74 77 78 74 77 79 77 78
2433 27 26 23 22 26 23 21 23 22
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
9M
18
5873 73 74 74 74 76 73 73 78 73
4227 27 26 26 26 24 27 27 22 27
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
9M
18
From 2008 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics
were based on Bursa’s internal system.
Retail
(%)
Institutions
(%)Local(%)
Foreign(%)
Retail ADVTraded (RM mil)
Foreign ADV
Traded (RM mil)
Retail vs. Institution Foreign vs. Local
Securities Market Trading Participation
496
323 392 437 404
507 492 544
491 506
682
19
Securities Market Foreign Ownership
22.3
23.1
24.4
24.0
24.3
22.8
22.322.322.3 22.4
22.7
22.923.0
23.4 23.4 23.323.3
23.123.2
23.4
23.6
24.224.1 24.1
23.9
23.523.6
23.6
Based on Market Capitalisation (%)
20
-10,000
-5,000
0
5,000
10,000
2015
TNFO: RM19.7 bil
2013
TNFI: RM2.6 bil
2014
TNFO: RM6.9 bil
TNFI: Total Net Foreign Inflow
(RM mil)
TNFO: Total Net Foreign Outflow
Foreign Inflow/Outflow
Monthly foreign inflow/outflow from 2013 to Sept 2018
-738-231
-15
959
3,376
-1,120
-64
1,507
-5,604-4,927
-1,678
-99
66
-7,000-6,000-5,000-4,000-3,000-2,000-1,000
01,0002,0003,0004,000
Monthly foreign inflow/outflow from Sept 2017 to Sept 2018(RM mil)
2016
TNFO: RM3.2 bil
9M2018
TNFO: RM8.5 bil
2017
TNFI: RM10.8 bil
21
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
9M
18
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
17%
136
162171
152
174
146
172
214
196
213
204196
218
239
288
196
207
229
235
230
283
293
226
237
262263
261
295
283
290
306
40
Quarterly Average Daily Contracts (’000)
31
42
35
60
Total Annual Contract (mil)
Crude Palm Oil FuturesOthersOpen Interest (’000)
19%
78%
6.1 6.1 6.2
8.4
9.6
FBMKLCI Futures
37
`
`
76
%3234
4445
4246
42
10.7
50
12.5
44
54
Derivatives Market Activity
55
14.2
62
51
62
56
14.0
5856
62
55
as
14.1
57 5754
156
123
132
152
214196 196
230
237
295
306
5410.056
58
`
`
7%
3%
22
15 20 21 19 15 18 20 18 14 11 14
46
5244
42
2828 24
23
1918
24
2
3
22
21 2
5
33
3
37
2633
37
55 53 54 55
6468
59
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9M18
(%)FKLI
27
36 34 34 36 33 34 31 2823
18
3827
26 24 1917 15
1516
2024
1
11
1 11
1 1
15 17
1513
12
10 15 2121 23
21
20 1925 28
3239
35 32 34 33 36
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9M18
(%)FCPO
1
Local
Domestic Retail
Domestic
Institutions
Foreign Institutions Local
Domestic RetailDomestic
Institutions
Foreign Institutions Foreign Retail
Derivatives Market Demography
23
0.9 1.6 2.75.5
13.5 13.4 15.1 15.5
0.2 0.71.2
1.4
1.7 2.9
4.56.0
2011 2012 2013 2014 2015 2016 2017 9M18
BSAS Annual Average Daily Value
Local ADV Foreign ADV
1.22.3 3.9
6.9
15.2 16.319.6
21.5(RM bil)
BSAS ADV (RM bil)
13.5
0.9
0.8 0.9 1.1 1.1 1.3 1.5 1.6 1.8 2.6 2.4 2.7 3.2 3.7 3.7 5.9
8.5 10.4
12.0 14.4
16.9 16.1
12.7 12.2 12.6 13.6 15.1 15.5 16.1 16.2
14.3 15.9
0.2 0.2 0.2 0.3 0.3 0.7 0.9 1.2 1.1 1.0 1.1 1.5 1.4 1.5
1.4
1.4
1.5 1.6
1.6
2.1 2.6
2.7 3.0 3.2 3.8
3.7 4.9
5.6 6.4
5.9 5.7
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
BSAS Quarterly Average Daily Value(RM bil)
Islamic Capital Market Activity
DISCLAIMER:
These presentation slides are owned by Bursa Malaysia Berhad and/or the Bursa Malaysia group of companies (”Bursa Malaysia”). Whilst Bursa Malaysia endeavors to
ensure that the contents in this presentation are accurate, complete, current and have been obtained from sources believed by Bursa Malaysia to be accurate and
reliable, neither Bursa Malaysia or the presenter of this presentation make any warranty, express or implied, nor assume any legal liability or responsibility for the
accuracy, completeness or currency of the contents of this presentation. In no event shall Bursa Malaysia be liable for any claim, however arising, out of or in relation to
this presentation.
Copyright Bursa Malaysia Berhad 2018 (30632-P)
www.bursamalaysia.com
RASMONA ABDUL RAHMAN
603-2034 7175
E-mail : [email protected]
RAFIDAH AZIZ
603-2034 7262
ADAM ISKANDAR AHMAD ZAHAR
603-2034 7351
INVESTOR RELATIONS CONTACT INFORMATION
