KUALA LUMPUR (July 29): Bursa Malaysia Bhd (KL:BURSA) is maintaining its 2025 profit-before-tax (PBT) target of RM369 million to RM408 million, banking on stronger liquidity in the market and expected recovery in investor sentiment in the second half of the year.
“We’re maintaining our guidance,” said CEO Datuk Fad’l Mohamed during the media briefing on the first-half financial results. “Ultimately, it ties back to Malaysia’s economic trajectory, with GDP growth for 2025 projected between 4% and 4.8%.”
He highlighted that local fund managers are holding record cash levels — 11.5% as of May, the highest since January 2024 — signalling potential trading momentum.
“We hope to see greater trading activity once that cash is deployed,” said Fad'l.
On market valuations, he pointed to attractive entry points in the local equity market. “The KLCI is trading at a 17% discount to its 10-year average. With consensus placing FBM KLCI at 1,664 versus the current 1,530, there’s clear upside.”
He added that Bank Negara Malaysia’s decision to reduce the overnight policy rate by 25 basis points could further stimulate activity. “That also will bring in additional liquidity into the financial system,” he said.
Bursa saw a subdued first half as geopolitical tensions weighed on securities trading activities, although performance improved in derivatives, business trading and non-trading income.
Non-trading income remains a strategic focus, with targeted growth of 5% to 7% by year-end.
“Going forward, I would be looking at targeting, say, [in] the next three years, double-digit growth for our non-trading businesses,” said Fad’l. “It is important that we also cushion the volatility of average daily volumes.”
Bursa also aims to meet its target of 60 new listings in 2025, with a combined market capitalisation of RM40.2 billion, contingent on one sizeable IPO materialising.
Key strategic priorities for 2025-2026
Looking ahead, Bursa will focus on six strategic pillars in 2025-2026: reinforcing its role as a key fundraising platform, enhancing market vibrancy and liquidity, advancing the Islamic capital market, leveraging technology and data, driving sustainability through decarbonisation, and elevating customer experience and marketing.
It wants to expand fundraising avenues and encourage more listings from SMEs and high-growth sectors such as data centres and semiconductors, Fad’l said.
To enhance local market liquidity, the Vibrancy Initiative Programme will be introduced — which aims to stimulate trading activity through structured incentives to liquidity providers and proprietary trading firms.
Additional priorities include broadening the derivatives product suite, expanding the international footprint of Bursa Suq Al-Sila’ (BSAS) — a Shariah-compliant electronic commodity trading platform developed by Bursa — and accelerating growth in new ventures such as Bursa Carbon Exchange, Bursa Gold Dinar and BR Capital.
Fad’l also noted that under the Sustainability Accelerator Programme, large public listed companies are expected to deliver more robust climate-related disclosures by year-end.
As of Tuesday’s close, shares in Bursa Malaysia rose two sen or 0.3% to RM7.66, giving it a market capitalisation of RM6.2 billion. The counter is down over 14% this year.