Kuala lumpur: Bursa Malaysia Bhd is holding firm to its pre-tax profit target ranging from RM369 million to RM408 million for the financial year ending December 31, 2025 (FY2025), as announced by its chief executive officer, Datuk Fad’l Mohamed. This target is set against a backdrop of strong liquidity in the domestic market and stable economic growth.
According to BERNAMA News Agency, Datuk Fad’l Mohamed highlighted that the projected pre-tax profit aligns with Bursa Malaysia’s headline key performance indicator for the year. He expressed confidence that the company’s earnings would be bolstered by robust derivatives and non-trading revenues in the latter half of FY2025. Additionally, Bursa Malaysia anticipates a double-digit growth in non-trading revenues over the next three years.
Datuk Fad’l noted the significant role of local investors, mentioning that fund managers are currently holding approximately 11.5 percent cash, marking the highest level since January 2024. He indicated that this cash reserve could potentially lead to increased trading activities once deployed. This was shared during a briefing on Bursa Malaysia’s financial performance results for the first half of 2025.
Fad’l also pointed out that Bursa Malaysia is on course to achieve 60 initial public offerings (IPOs) in 2025, with an expected total IPO market capitalisation of RM40.2 billion. The attractive valuation of FBM KLCI, with a 17 percent discount to its 10-year mean, is seen as a favorable factor for improving performance in FY2025.
Additionally, the preemptive reduction of interest rates by Bank Negara Malaysia is expected to enhance liquidity in the financial system, potentially boosting the FBM KLCI from its current level of 1,530. In the first half of 2025, Bursa Malaysia recorded 32 IPOs, comprising six in the main market, 23 in ACE, and three in LEAP.
Trading activities are anticipated to recover in the second half of 2025, largely driven by the deployment of capital from funds currently holding substantial cash reserves. The annual average daily trading value (ADV) consensus remains at RM2.6 billion.
Fad’l expressed optimism about the potential return of foreign funds to the Malaysian market, citing current valuations as an attractive entry point. He observed that towards the end of the previous year, there was movement among foreign funds seeking safe havens due to uncertainties, including those in the ASEAN markets. He believes that the current market conditions are conducive for foreign fund inflows.