Bursa Malaysia Q2 net profit falls 56pc

The Malaysian stock exchange operator reports that net profit stands at RM28.6 million for the quarter and announces a gross dividend of 16.5 sen a share.

MALAYSIA'S stock exchange operator, Bursa Malaysia Bhd, reported a 56 per cent fall in second-quarter net profit as volumes shrank amid weak global equity markets and growing domestic political uncertainty. It also said today that investor sentiment is likely to remain cautious in the remaining year, which analysts say would mean a further fall in profits for the company. “The Malaysian equity market remained lacklustre during the first half, being continually challenged by the slowing US and global economy, rising crude oil, commodity and food prices, and domestic uncertainties,” Bursa said in a statement. “While some measure of stability is expected on the local scene, investor sentiment is expected to continue to be cautious for the remainder of the year.”

Bursa, whose profits are driven by the fees it charges for trading in Malaysian shares, posted a net profit of RM28.6 million (US$8.87 million) for the three months ended June 30, compared with RM65 million in the year-ago period.. It also set a gross dividend of 16.5 sen per share, compared with 32 sens paid in the corresponding quarter last year. Daily average trading value in the equity market halved to RM1.3 billion in the quarter from RM2.6 billion a year ago, Bursa said. Bursa shares fell 18 per cent in the second quarter, underperforming a 5 per cent drop in the benchmark index. Bursa’s net profit is expected to fall to RM166.3 million on consensus this year, compared with RM240.6 million in 2007, Reuters Estimates show. - Reuters