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Bursa Malaysia - 1Q2016 Financial Results

Mohd Noordin
By Mohd Noordin
5 years ago
Bursa Malaysia - 1Q2016 Financial Results

Ard, Islam, Mal, Murabaha , Shariah , Shariah compliant, Sukuk , Participation


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  1. 1Q2016 Financial Results 25 April 2016 DRIVING SUSTAINABILITY AND INCLUSIVENESS UNLOCKING THE POTENTIAL OF OUR MARKETPLACE
  2. AGENDA      KEY FINANCIAL HIGHLIGHTS MARKET PERFORMANCE FOCUS AREAS MOVING FORWARD APPENDICES 2
  3. KEY FINANCIAL HIGHLIGHTS    HIGHLIGHTS FOR 1Q2016 OPERATING REVENUE OPERATING EXPENSES 3
  4. Highlights For 1Q2016 Best 1st quarter financial performance since 2008 1Q2016 1Q2016 vs . 1Q2015 1Q2016 vs. 4Q2015 Operating Revenue (RM million) 126.1 5.3% 0.7% Operating Expenses (RM million) 63.3 5.1% 2.6% PATAMI (RM million) 49.9 6.1% 1.3% 9.3 sen 5.7% 2.1% Financial Items EPS Cost to Income Ratio 47% Annualised ROE 26% 1 percentage point 1Q2016 vs. 1Q2015:   Higher operating revenue contributed by all three market segments. Higher operating expenses mainly due to higher manpower and technology costs. 4
  5. Operating Revenue Growth contributed mainly by Derivatives trading , and listing & issuer services Total RM119.8 mil Total RM126.1 mil 5.7 5.7 5.0 20.5 (RM mil) 5.4 8.2 9.4 8.2 8.4 10.9 3.8 Growth contribution by revenue streams: 13.3 + 2.4 4.7 5.3% 22.5 + 2.0 57.5 57.1 1Q2015 1Q2016 Securities Trading Revenue Derivatives Trading Revenue BSAS Trading Revenue Listing & Issuer Services Depository Services Market Data Member Services & Connectivity Other Operating Revenue* 119.8 0.7% 114.6 9.6% 114.6 116.6 1Q2015 + 0.4 8.2% 11.1% + 0.9 25.7% - 0.4 + 1.0 22.4% 119.9 126.1 120.9 117.5 1Q2016  Derivatives Market trading revenue increased mainly contributed by the higher volume of FKLI traded.  BSAS trading revenue increased following the adoption of the Murabaha concept and wider acceptance of tenor based pricing.  Listing & issuer services revenue increased due to higher number of corporate exercises and IPOs.  Depository services revenue increased mainly due to higher CDS custody fees and ROD fees. Note* - Other operating revenue mainly includes conference & exposition income 5
  6. Operating Expenses Higher manpower and technology costs Total RM60 .2 mil Total RM63.3 mil Movement of expenses: (RM mil) 8.6 7.9 + 0.7 5.7 5.0 4.6 6.1 5.6 4.5 4.9 5.7 + 1.7 + 0.4 6.8% - 0.3 6.1% + 0.5 + 0.1 1.9% 63.3 8.3% 12.2% 5.1% 31.6 33.3 60.2 1Q2015 1Q2016 1Q2015 Staff costs Depreciation & amortisation Marketing & development IT maintenance Service fees Other operating expenses^ 5.4% 1Q2016  Staff costs increased due to the annual salary increment.  Higher depreciation expenses and IT maintenance cost following the replacement of Bursa LINK system in April 2015.  Other operating expenses increased mainly due to reversal of unrealised gain on dividend received in USD. Note^ - Other operating expenses include building maintenance, administrative expenses and CDS expenses. 6
  7. MARKET PERFORMANCE    SECURITIES MARKET OVERVIEW DERIVATIVES MARKET OVERVIEW ISLAMIC CAPITAL MARKET OVERVIEW 7
  8. Securities Market Overview Strong foreign inflows sustained market performance Average Daily Value (OMT)(RM mil) 30 30 29 Market Capitalisation (RM bil) 1,830.78 Fund Raised from New Listings & Secondary Market (RM bil) 2 1,717.58 1,692.51 2 0 1.7% 4.8% 2,081 2,042 596 520 74.3% 8.2 1,981 539 6.0 490 467 436 1,738 0.7% 3.0% 1,032 1,018 1Q2015 4Q2015 1,006 1Q2016 7.8 1,707 1,695 81.1% 6.0 1.5 1.3 31 Mar 2015 31 Dec 2015 31 Mar 2016 1Q2015 0.4 0.2 4Q2015 1Q2016 Velocity (%) FBMKLCI No. of New Listing ADV of Foreign Institutions Market Capitalisation Fund raised from secondary market Fund raised from new listings ADV of Retail ADV of Domestic Institutions 8
  9. Derivatives Market Overview Higher trades in FKLI cushioned the impact of lower ADC in FCPO Average Daily Contracts (’000) & Volatility 26% 18% 17% 18% 13% 13% 4.1% 60.3 82% 49.5 10 Sep 14 321,077 25 Aug 15 290,672 31 Dec 14 196,413 31 Mar 16 282,871 31 Dec 15 230,376 57.9 56.0 78% Open Interest (No. of contract) 77% 44.5 43.8 3.4% 18% 10.6 1Q2015 22% 23% 12.1 13.1 4Q2015 1Q2016 FBMKLCI Futures Crude Palm Oil Futures Volatility of FBMKLCI Volatility of Crude Palm Oil Prices Others 9
  10. Islamic Capital Market Overview Higher trades on BSAS following the adoption of Murabaha concept Bursa Suq Al-Sila ’ ADV (RM bil) 100 109 111 Value of Listed Sukuk (USD bil) 20 22 57.7% 19.0 2.1 22 Market Capitalisation of Shariah Compliant Stocks (RM bil) 74% 5.9% 18.7 34.0 34.6 13.2 14.2 12.9% 36.0 2.5 14.2 11.9 1.5 16.9 10.4 1Q2015 4Q2015 1Q2016 20.8 20.4 1Q2015 4Q2015 No. of Trading Participants No. of Sukuk Domestic Domestic Foreign 4.0% 11.8% 21.8 1Q2016 Foreign 1,214 1,086 1,075 16.2 1.5% 74% 74% 31 Mar 2015 31 Dec 2015 31 Mar 2016 No. of Shariah Compliant Stocks (%) Market Capitalisation of Shariah Compliant Stocks 10
  11. FOCUS AREAS  FOCUS AREAS 11
  12. Focus Areas Focus 1 : Value Extraction LEVERAGE ON ASEAN GROWTH Focus 2: Build for the Future REVIEW MACROSTRUCTURE LEVERAGE ON DOMESTIC LIQUIDITY DEVELOP REGIONAL PRESENCE & NEW BUSINESS IMPROVING MICROSTRUCTURE SI 1 Create a More Facilitative TRADING ENVIRONMENT REVIEW MARKET FRAMEWORK SI 2 Facilitate More TRADABLE ALTERNATIVES SI 3 Reshape MARKET STRUCTURE & FRAMEWORK SI 4 REGIONAL MARKETPLACE with Global Access (Centre of ASEAN) 12
  13. MOVING FORWARD  MOVING FORWARD BUILDING CAPABILITIES 13
  14. Moving Forward SECURITIES MARKET • Recent S&P, Fitch and Moody affirmations on their stable outlook for Malaysia have stimulated foreign investors’ confidence. • Foreign as well as domestic institutions will continue to be major market contributors. • The Exchange will continue with its initiatives to attract more retail players to the market. DERIVATIVES MARKET • Derivatives Market activities will be further spurred by the volatility in commodity prices and FBM KLCI. ISLAMIC CAPITAL MARKET • Transactions on Bursa Suq Al-Sila’ are expected to be supported by wider acceptance of tenor based pricing and the continued demand for Murabaha contracts in the domestic market for liquidity management. Given the factors mentioned above, the Exchange is cautiously optimistic that we will continue to achieve a good financial performance for 2016. 14
  15. 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 15
  16. Securities Market Trading Activity Quarterly ADV Traded & Velocity 48 23 1,490 615 1Q09 2Q09 36 28 35 28 1,793 1,266 1,099 1,435 1,209 1,387 3Q09 4Q09 1Q10 2Q10 42 37 31 3Q10 4Q10 34 30 34 27 28 27 25 2,308 2,161 1,579 1,732 1Q11 37 28 2Q11 3Q11 1,341 1,841 4Q11 1Q12 1,439 1,595 2Q12 3Q12 1,430 4Q12 1,643 1Q13 2Q13 31 2,002 25 1,686 3Q13 4Q 13 30 30 29 2,068 2,053 1Q14 2Q14 2,196 3Q14 30 28 28 29 30 29 1,901 2,081 1,913 1,933 2,042 1,981 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%) Annual ADV Traded & Velocity 53 20 23 34 32 25 34 32 34 33 33 28 30 2,179 1,454 350 472 2001 2002 748 2003 874 2004 1,019 1,181 1,129 2008 2009 1,699 1,915 29 30 29 2,053 1,991 1,981 2014 2015 1Q16 1,573 718 2005 2006 Turnover Velocity (%) 2007 2010 2011 2012 2013 Average Daily Value Traded (OMT, RM mil) 16
  17. Securities Market Trading Participation Retail vs Institution Foreign vs Local 806 806 346 34 283 37 24 76 66 63 2006 2007 2008 530 464 436 369 392 442 354 33 27 26 23 22 26 23 22 73 74 77 78 74 77 78 67 2009 2010 Retail ADV Traded (RM mil) 2011 2012 Retail (%) 424 2013 2014 2015 Institutions (%) 1Q16 496 357 35 323 392 37 42 65 63 2006 2007 437 404 507 492 544 546 27 27 26 26 26 24 27 28 73 73 74 74 74 76 73 72 2009 2010 2011 2012 2013 2014 58 2008 Foreign ADV Traded (RM mil) 2015 1Q16 Foreign (%) From 2006 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based on Bursa’s internal system. Local (%) 17
  18. Securities Market Foreign Ownership Based on Market Capitalisation (%) 24.4 24.3 24.0 24.1 24.0 24.1 24.1 23.7 23.4 23.1 23.3 23.1 23.0 22.8 22.8 22.5 22.3 22.3 22.3 22.5 Note: Previously, foreign shareholdings are computed based on the investor’s country of incorporation. To be more reflective of the actual foreign shareholdings in the equity market, from January 2016 onward, the foreign shareholdings are computed based on the nationality of investors. On this basis, we have adjusted all the numbers above accordingly. 18
  19. Foreign Inflow /Outflow Monthly foreign inflow/outflow from 2011 to 2016 (RM mil) 10,000 5,000 0 -5,000 -10,000 2011 TNFI: RM2.0 bil 2012 TNFI: RM13.6 bil 2013 TNFI: RM2.6 bil TNFI: Total Net Foreign Inflow 2014 TNFO: RM6.9 bil 2015 TNFO: RM19.7 bil 1Q2016 TNFI: RM5.5 bil TNFO: Total Net Foreign Outflow Monthly foreign inflow/outflow from Mar 2015 to Mar 2016 8000 6000 4000 2000 0 -2000 -4000 -6000 6,065 -844 -542 -2,545 Mar-15 432 608 151 -3,175 Apr-15 May-15 Jun-15 -2,840 Jul-15 -2,374 -1,193 -1,001 -4,068 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 19
  20. Derivatives Market Activity Quarterly Average Daily Contracts (’000) Total Annual Contract (mil) 283 288 283 230 239 214 171 115 152 28 40 42 44 45 42 46 62 54 55 56 156 152 123 10.7 9.6 85 51 12.5 132 58 8.4 66 44 42 14.1 159 60 50 37 35 32 34 31 230 125 146 136 196 196 196 172 114 24 23 25 207 196 196 162 132 204 218 235 6.2 77% 129 174 213 229 214 6.1 6.1 6.2 4.2 3.5 Open Interest (’000) Others Crude Palm Oil Futures 1Q16 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 ` ` 2004 1Q16 4Q15 3Q15 2Q15 1Q15 4Q14 3Q14 2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12 2Q12 1Q12 4Q11 3Q11 2Q11 1Q11 4Q10 3Q10 2Q10 1Q10 23% 23% 77% 2.6 2.5 FMBKLCI Futures 20
  21. Derivatives Market Demography FKLI (%) 14 FCPO (%) 23 3 31 26 37 40 45 42 37 6 14 14 17 20 18 16 18 20 19 33 37 55 53 54 55 57 3 5 3 3 2 2 2 2 2 2 45 48 45 43 40 40 41 46 52 44 42 21 18 27 1 2 5 4 24 23 23 28 28 4 20 22 25 22 15 17 25 28 32 32 33 39 35 15 13 12 3 2 1 1 10 15 21 4 1 1 23 1 1 15 21 1 27 26 24 19 26 24 23 17 15 15 27 18 34 38 6 1 31 19 14 16 16 13 15 15 20 21 19 15 18 20 18 16 40 38 35 33 35 31 25 27 36 34 34 36 33 34 31 26 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q16 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q16 Foreign Institutions Domestic Retail Foreign Institutions Foreign Retail Domestic Institutions Local Domestic Institutions Domestic Retail Local 21
  22. Islamic Capital Market Activity (RM bil) 19.02 18.73 BSAS Average Daily Value 2.14 15.99 1.58 16.88 2.55 16.18 13.60 14.41 11.87 9.87 1.39 1.50 1.55 12.05 10.37 7.25 8.48 1.38 4.67 3.65 2.99 2.17 2.46 1.15 1.09 3.40 1.03 5.10 5.14 5.87 3.79 1.46 1.42 1.46 1.05 2.56 2.37 2.74 1.30 1.42 1.55 0.67 0.90 1.05 1.12 0.21 0.35 0.25 1.84 0.65 0.35 0.13 0.23 0.24 1.50 1.56 1.09 0.06 0.08 0. 18 0.27 1.30 1.07 0.52 0.82 0.88 3.21 3.68 3.68 3Q094Q091Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q16 Foreign ADV Local ADV 22
  23. INVESTOR RELATIONS CONTACT INFORMATION KOAY LEAN LEE koayll @bursamalaysia.com 603-2034 7306 ADRINA CHE AHMAD [email protected] 603-2034 7488 ABDUL MUIZ [email protected] 603-2034 7611 RAFIDAH AZIZ [email protected] 603-2034 7262 E-mail : [email protected] 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 2016 www.bursamalaysia.com