BURSA (1818) - Stock With Momentum: Bursa Malaysia

By Asia Analytica / The Edge Financial Daily   | July 22, 2016 : 10:40 AM MYT

This article first appeared in The Edge Financial Daily, on July 22, 2016.

Bursa Malaysia Bhd (+ve)

SHARES in Bursa Malaysia (fundamental: 2.3/3, valuation: 1.5/3) triggered our momentum algorithm yesterday after its share price declined one sen or 0.11% to RM8.89 with 2.43 million shares changing hands. At the current price, Bursa Malaysia has a market capitalisation of RM4.77 billion.

For the first quarter ended March 31, 2016 (1QFY16), Bursa’s net profit rose 6.12% to RM49.94 million, while revenue grew 5.38% to RM133.93 million, from RM127.09 million in 1QFY15.

Bursa Malaysia’s explanatory note showed that the derivatives market was the main driver behind this growth, due to higher guarantee fees and collateral management fees earned. Bursa Malaysia said foreign and domestic institutions continued to be major market contributors, encouraged by the recovery in commodity prices and the delay in the US interest rate hike. Therefore, the exchange said it will continue its initiatives to attract more retail players to the market. It is cautiously optimistic to continue charting a “good” financial performance for FY16.

BURSA (1818) - Stock With Momentum: Bursa Malaysia