Post on 24-Sep-2020
UNLOCKING THE POTENTIAL
OF OUR MARKETPLACE
3Q 2015 Financial Results
23 October 2015
2
AGENDA
FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE
FINANCIAL REVIEW
FOCUS AREA & CONCLUSION
APPENDICES
3
ROBUSTGROWTH
FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE
Financial Highlights
9 Months Financial Trend
Securities Market Overview
Derivatives Market Overview
Islamic Capital Market Overview
EXTRACTING
VALUE
4
Financial HighlightsGrowth in 9M 2015 PATAMI despite a challenging 3Q 2015
Growth in operating revenue attributed to solid performance from Derivatives and Islamic Capital
Market (ICM), while costs increased marginally.
Cost to Income ratio and ROE remained stable at 46% and 26% respectively in 9M 2015.
Financial Items 9M 2015
9M 2015
vs.
9M 2014
3Q 2015
3Q 2015
vs.
3Q 2014
Operating Revenue (RM million) 362.5 3.1% 122.0 0.9%
Operating Expenses (RM million) 174.7 1.0% 56.9 2.9%
PATAMI (RM million) 148.0 2.0% 51.5 3.1%
EPS (sen) 27.7 1.8% 9.6 4.0%
Cost to Income Ratio (%) 46% - 44% 1 percentage point
Annualised ROE (%) 26% - 27% 2 percentage points
9M2015 vs.9M2014:
237.0
296.5 293.9
335.9 351.6 362.5
82.4
112.9 114.8 139.2 145.1 148.0
9M 2010 9M 2011 9M 2012 9M 2013 9M 2014 9M 2015
55
50 48
45 46 46
14 18 18
23 26 26
5
9 Months Financial TrendContinuous improvement in the last 6 years
Operating Revenue
(RM mil)
PATAMI
(RM mil)
Cost to Income
Ratio (%)ROE (%)
1,774
1,597
30-Sep-2014 30-Sep-2015
1,846.31
1,621.04
6
Securities Market OverviewLower ADV due to lower retail participation
Average Daily Value (OMT)
(RM mil)
Market Capitalisation (RM bil) Fund Raised from New Listings &
Secondary Market (RM bil)
Velocity (%)
FBMKLCI
5.7
3.9
17.0
9.4
9M 2014 9M 2015
No. of New Listing
119
41.3%
Fund Raised from New Listings
Fund Raised from Secondary Market
ADV of Domestic Institutions
ADV of Retail
ADV of Foreign Institutions
1,063976
553456
489
542
9M 2014 9M 2015
3029
6.2%
2,1051,974
10.0%
22.7
13.3
1,712
Market Capitalisation
7%
16%
16%
20%
8.6 12.4
40.1
44.9
9M 2014 9M 2015
1%
7
Derivatives Market OverviewADC lifted by volatility in CPO prices & FBM KLCI
Average Daily Contracts (’000) and Volatility
Crude Palm Oil FuturesFBMKLCI Futures Others
Volatility of FBMKLCI Volatility of Crude Palm Oil Prices
Open Interest
1/9/10
111,548
26/7/13
258,001
30/9/15
234,675
4/9/14
319,476
2%
49.3
81%
17%
78%
21%
57.6
16.7%
23.0
18.4
12.8
14.2
30-Sep-2014 30-Sep-2015
32.6
35.8
30-Sep-2015
1,078
30-Sep-2014
21 21
4.4
12.3
1.4
1.5
9M 2014 9M 2015
86
106
8
% of Shariah Compliant StocksNo. of Trading Participants
Market Capitalisation of Shariah
Compliant Stocks (RM bil)
No. of Sukuk
Value of Listed Sukuk (USD$ bil)
7375
8.9% 5.4%
1,020
Domestic
137.7%
Bursa Suq Al-Sila’ ADV
(RM bil)
Market Capitalisation of Shariah
Compliant StocksForeign
5.8
13.8
Islamic Capital Market OverviewStrong growth in BSAS trading driven by the conversion of Murabaha
deposits, as well as growing interest in tenor based pricing
Domestic Foreign
9
STRENGTHENEDMARKETPLACE
Financial Review
Financial Snapshot
Operating Revenue
Operating Expenses
SUSTAINABILITY
& GOVERNANCEFORGING THE WAY
10
53.151.5
145.1148.0
3Q 2014 3Q 2015 9M 2014 9M 2015
121.0 122.0
351.6362.5
3Q 2014 3Q 2015 9M 2014 9M 2015
2.0%
3.1%
0.9%
55.3 56.9
172.9 174.7
3Q 2014 3Q 2015 9M 2014 9M 2015
2.9%
Financial SnapshotImproved 9 months performance despite lower 3Q results
Operating revenue (RM mil) Operating expenses (RM mil)
PATAMI (RM mil)
3.1%
4344
46 46
3Q 2014 3Q 2015 9M 2014 9M 2015
Cost to Income Ratio (%)
1 percentage
point
1.0%
180.6 173.3
51.6 64.0
6.4 11.840.6 38.4
26.8 28.722.7
24.916.615.6
6.35.8
9M 2014 9M 2015
11
Total
RM362.5 mil
3.1 %
Total
RM351.6 mil
Operating RevenueGrowth attributed to higher trading in Derivatives and ICM
Securities Trading Revenue
Derivatives Trading Revenue
Listing & Issuer Services
Depository Services
Market Data
Membership Services & Connectivity
BSAS Trading Revenue
Other Operating Revenue *
Note * - Other operating revenue mainly consists of conference & expo income.
(RM mil)
Growth contribution by revenue:
362.5
-7.3
-2.2
-1.0 -0.5
351.6
+12.4
+5.4+1.9
+2.2
9M 2014 9M 2015
4.1%
7.1%9.8%
5.3%
6.5% 7.4%
24.0%
84.5%
Securities trading revenue decreased due to lower trading participation
from retail investors and domestic institutions.
Derivatives trading revenue increased mainly contributed to higher average
daily contracts traded.
BSAS trading revenue increased due to higher conversion of deposits to
Murabaha, as well as growing interest in tenor based pricing.
Listing and issuer services revenue decreased resulting from the absence of
larger IPOs and lower number of corporate exercises in 9M 2015.
Market data revenue increased due to higher number of subscribers.
Operating ExpensesCost optimization; marginal increase
174.7
172.9
+1.7 -1.3
-1.1
-1.7
+3.9 +0.3
9M 2014 9M 2015
12
94.6 96.3
19.0 17.7
8.6 7.5
14.3 12.6
13.2 17.1
23.2 23.5
9M 2014 9M 2015
Total
RM172.9 mil
Total
RM174.7 mil
1.0%
(RM mil)Movement of expenses:
Note^ - Other operating expenses includes building maintenance, administrative expenses and CDS expenses.
30.2%
1.4%
Staff costs
Depreciation & amortisation
Marketing & development
IT maintenance
Service fees
Other operating expenses^
Higher staff costs due to salary increment and higher share grant expenses.
Depreciation and amortisation was lower following the retirement of the
Derivatives Order Management System in 2014.
Lower marketing and development expenses due to higher number of
conferences and activities in 9M 2014.
IT maintenance decreased due to completion of one-off maintenance
support services for Bursa Trade Securities 2 (“BTS 2”) at the end of 2014.
Service fees increased as a result of an increase in derivatives trading
volume in 9M 2015.
1.7%12.1%
7.3%
12.1%
FOCUS AREA AND CONCLUSION
13
STRONGER
COLLABORATION
Highlights of 9M 2015 Initiatives
Focus Areas
Moving Forward
BUILDING
CAPABILITIES
14
Highlights of 9M 2015 Initiatives
Create a More
Facilitative TRADING
ENVIRONMENT
SI 1
REGIONAL MARKETPLACE
with Global Access
(Centre of ASEAN)
SI 4
Obtained US CFTC approval to attract US-based commodity
traders into our Derivatives Market via direct market access
Won ‘Best Emerging Exchange of the year’ at Futures & Options
World Awards Asia
Won ‘Best Islamic Exchange 2015’ for Bursa Suq Al-Sila’
performance at the Global Islamic Finance Awards
Launched e-Services ie New Bursa Link and Online listing enquiry service
Organised CelebTraders - Learning how to invest and follow the celebs
trading journey
Issued guidance on rebate on commission for equities brokers
Facilitate More
TRADABLE ALTERNATIVES
SI 2 Introduced new ETF – MyETF MSCI SEA Islamic Dvidend
Introduced new call and put warrants over foreign indices
Signed Sustainable Stock Exchanges’ commitment to promote
sustainable performance
Launched Sustainability Guidebook & CSR framework for PLCs
Hosted Sustainability and Impact Investing Forum
Reshape
MARKET STRUCTURE &
FRAMEWORK
SI 3
15
LEVERAGE ON
ASEAN
GROWTH
LEVERAGE ON
DOMESTIC
LIQUIDITY
IMPROVING
MICROSTRUCTURE
Focus 1: Value Extraction Focus 2: Build for the Future
REVIEW
MACRO-
STRUCTURE
REVIEW
MARKET
FRAMEWORK
DEVELOP REGIONAL
PRESENCE &
NEW BUSINESS
Focus Areas
Create a More
Facilitative
TRADING
ENVIRONMENT
Reshape
MARKET
STRUCTURE &
FRAMEWORK
SI
1
Facilitate More
TRADABLE
ALTERNATIVES
SI
2
SI
3
REGIONAL
MARKETPLACE
with Global Access
(Centre of ASEAN)
SI
4
16
Moving Forward
Securities Market
Trading activities are expected to continue to be influenced by the global and domestic
developments as corporate earnings are likely to be impacted. The support from domestic
liquidity and our outreach programmes as well as the ability to provide diversified and
investable products to the existing and potential investors are crucial to the performance of
our market in this volatile environment.
Derivatives Market
The increased volatility of the underlying products for FCPO and FKLI has benefited the
Derivatives Market. Increasing palm oil imports by India, the effects from the hot El Nino
weather pattern and stocking up by China are the supporting elements amidst the recent
commodities rout. The uncertainty in FBM KLCI has also resulted in significant increased
trading activities on FKLI. The Derivatives Market is expected to continue to benefit from the
factors outlined above.
Islamic Capital Market
Malaysia remains amongst the healthiest Islamic economy environment worldwide1 that will
underpin the interest of its Shariah compliant securities, despite the current global economic
situation. Increased adoption of Murabaha and Tawarruq’ contracts in the domestic market
for liquidity management as well as the tenor based pricing have deepened the usage and
will further spur the growth of Bursa Suq Al-Sila’ (BSAS) activities.
1Source: State of the Global Islamic Economy Report, Dubai Islamic Economic Development Centre – September 2015
17
www.bursamalaysia.com
AppendicesAPPENDICES
23
4836
2835
28 31 37 4230 34
2734
27 28 25 2837 31 25 30 29 30 28 30 28 29
2023
34 3225
32
53
34 34 33 33 28 30 29 29RM mil
350 472 748 874
718 1,019
2,179
1,181 1,129 1,454
1,699 1,573 1,915 2,053 1,974
-
400
800
1,200
1,600
2,000
2,400
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 2015
Turnover Velocity (%)
18
Quarterly ADV Traded & Velocity
Average Daily Value Traded (OMT, RM mil)
Average Daily Value Traded (OMT, RM mil)Turnover Velocity (%)
Annual ADV Traded & Velocity
Securities Market Trading Activity
615
1,490 1,266
1,099
1,435 1,209
1,387
1,793
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
-
400
800
1,200
1,600
2,000
2,400
2,800
1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
RM mil
346
806
283 369 392 442
354424
530456
66 63
7667
73 74 77 7874 77
34 37 24 33 27 26 23 22 26 23
2006 2007 2008 2009 2010 2011 2012 2013 2014 9M2015
19
65 6358
73 73 74 74 74 7672
35 37 42 27 27 26 26 26 24 28
2006 2007 2008 2009 2010 2011 2012 2013 2014 9M2015
From 2006 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 ADV Traded
(RM mil)
Foreign ADV
Traded (RM mil)
Retail vs Institutions Foreign vs Local
Securities Market Trading Participation
357
806
496
323392 437 404
507 492549
22.377.7
26.2 27.2 28.2
21.9
22.7 23.9
23.5
23.2
23.1
23.0
23.1
23.4
23.4
23.4
23.6
23.5
23.5
23.6
23.8
23.6
23.6
23.6
23.6
23.2
22.9
22.7
22.6
22.3
2007
2008
2009
2010
2011
2012
2013
Jan-1
4
Feb-1
4
Mar-
14
Apr-
14
May-1
4
Jun-1
4
Jul-
14
Aug-1
4
Sep-1
4
Oct-
14
Nov-1
4
Dec-1
4
Jan-1
5
Feb-1
5
Mar-
15
Apr-
15
May-1
5
Jun-1
5
Jul-
15
Aug-1
5
Sep-1
5
20
Based on Market Capitalisation
(as at month end)
(%)
Securities Market Foreign Ownership
Foreign Ownership by Nationality (%)
Singapore
Hong Kong
UK
Foreign Nominees
China
Taiwan
USA
Mid-East
5.1
0.9
2.0
0.5
0.8
0.1
0.1
Others 12.8
21
Foreign Inflow / Outflow
Monthly Foreign Inflow/Outflow from October 2009 to September 2015
-8,000
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
2010
TNFI: RM15 bil
2011
TNFI: RM2.0 bil
2012
TNFI: RM13.6 bil2013
TNFI: RM2.6 bil
2014
TNFO: RM6.9 bil
TNFI: Total Net Foreign Inflow
9M 2015
TNFO: RM18.2 bil
(RM mil)
TNFO: Total Net Foreign Outflow
-1,501
-499 -302
-2,940-2,432
-408 -542
151
-2,545-3,175
-2,840
-4,068
-2,374
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15
Monthly Foreign Inflow/outflow from September 2014 to September 2015 (RM mil)
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
9M
2015
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
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
66
85
159
125
156
123 132152
214196 196
235
26%
117
142
123
129115
114
132136
162171
152
174
146
172
214
196213
204
196
218
239
288
196
207
229 235
25
Quarterly Average Daily Contracts (’000)
23
2824
50
22
Total Annual Contract (mil)
Crude Palm Oil FuturesOthersOpen Interest (’000)
21%
78%
2.6 2.5
4.2
6.2 6.1 6.1 6.2
8.4
FMBKLCI Futures
29
`
`
74%
2422
3732
343531
404244
9.6
45
10.7
4246
Derivatives Market Activity
42
12.5
44
54 55
60
51
10.6
62
23
31 19 14 16 16 13 15 15 20 21 19 17 18 20 18
45
48
45 43 4040 41 46
52 44 42 25 28 24 23
3
6
53
32
22
3
22
21 2
5
1423
3137 40
45 4237
2633 37
56 53 54 54
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 9M2015
(%)FKLI
40 38 35 33 35 31 25 27 36 34 34 36 33 34 32
15 2126 24 23
27
34 38
27 26 24 1917 15 15
4
64
3 2 1 11
11
1 1 1
27
21 1820 22 25 22
15 1715
13 1210 15 19
14 14 17 20 18 16 18 20 1925 28 32
39 35 33
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 9M2015
(%)FCPO
Local
Domestic Retail
Domestic Institutions
Foreign Institutions Local
Domestic RetailDomestic Institutions
Foreign Institutions Foreign Retail
June –
Dec
2012
June -
Dec
2012
Derivatives Market Demography
24
Islamic Capital Market Trading Activity
RM mil BSAS Average Daily Value
Local ADVForeign ADV
55 77 177 274 354 515 819 875 1,087 1,068 1,297 1,501 1,559 1,841
2,562 2,368 2,743
3,205 3,679 3,677
5,867
8,478
10,374
12,046
14,408
128 231 237 207 347 252
665 898 1,152
1,086 1,033
1,047
1,463 1,421
1,458
1,376
1,391
1,500
1,552
1,576
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
www.bursamalaysia.com
KOAY LEAN LEE
koayll@bursamalaysia.com
603-2034 7306
Disclaimer :
Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this Presentation.
Whilst the Company endeavours to ensure that the contents in the presentation booklet are accurate, complete or have been obtained from sources
believed by the Company to be accurate and reliable, neither the Company nor the Presenter 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 the Company be liable for any claim, howsoever arising, out of or in relation to this presentation booklet to the recipient of this
presentation booklet and/or to any other third party.
© Bursa Malaysia 2013
E-mail : ir@bursamalaysia.com
Fax : 603-2732 6160
RASMONA ABDUL RAHMAN
rasmona@bursamalaysia.com
603-2034 7175
ADRINA CHE AHMAD
adrina@bursamalaysia.com
603-2034 7488
RAFIDAH AZIZ
rafidahaziz@bursamalaysia.com
603-2034 7276
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