Embed Size (px)
Citation preview
FY2018 Financial Results
Analyst & Media Briefing
30 January 2019
Datuk Seri Tajuddin AtanChief Executive Officer
Rosidah BaharomChief Financial Officer
2
Agenda
Market Recap
Key Financial Highlights & Market Performance
Financial Review
Highlights & Conclusion
Appendices
3
Market Recap
4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
Traded Volume (rhs) FBMKLCI (lhs)
Recapping on selected key global and local events
FBMKLCI(point)
Traded Volume (million)
6 FebruaryGlobal equity
market sell-
off led by
the US
markets
21 - 22 MarchUS Fed rate hike;
US Gov announced
plans to impose
tariffs of USD60B
on China Imports
29 MayUS stated that
it would impose
tariffs on USD50
billion worth of
China’s goods
22 JuneIn retaliation,
EU activated its
previous tariff
threat of
USD3.2B on US
25 Jan BNM rate
hike
8 MarchUS imposed
25% tariffs on
Chinese steel
and 10% on
aluminium
13 JuneSecond US
rate hike
of the year4 April
China planned
retaliate
tariffs on 106
US products
FBMKLCI Year-to-date (YTD) Performance For year 2018
9 MayMalaysia
14th GE
6 JulyUS 25% tariff
on USD34B
Chinese goods
took effect
17 SepUS announced
10% tariffs on
USD200B
Chinese goods
10 OctMY Gov
planned
to unveil
new
taxed
2 NovMalaysia
Budget
2019
18 SepChina plans to
retaliate with
tariffs on USD60B
US products 1 NovUS and China
resumed trade
talk after a phone
call between
Trump and Xi
19 DecFourth US
rate hike
(to 2.50%)
30 NovUS-Mexico-
Canada
Agreement
signed
5
FBMKLCI has been relatively resilient amid a challenging environment
-16.6%
-15.6%
-11.3%
-10.4%
-5.9%
MSCI Emerging Market
MSCI Asia Pacific
MSCI Asean
MSCI World
FBMKLCI
Performance of FBMKLCI against MSCI Indices YoY Growth (2018 vs 2017)
Source: Bloomberg
• Recapping 2018, the global equity market has suffered heavy losses, due to the various headwinds (e.g.
signs of global economic slowdown, tightened monetary policy, geo-political tensions and uncertainties,
the various trade wars between global superpowers, and more)
-12.8%
-10.8%
-9.8%
-9.3%
-5.9%
-2.5%
PCOMP
SET
Straits Times
VN-Index
FBMKLCI
Jakarta Composite
Performance of FBMKLCI against ASEAN Indices YoY Growth (2018 vs 2017)
Source: Bloomberg
6
Putting foreign funds outflow into perspective..
-50,284
-12,231
-8,913
-5,676
-4,557
-3,656
-2,885
-1,080
1,887
Japan
Taiwan
Thailand
South Korea
India
Indonesia
Malaysia
Philippines
Vietnam
Foreign Funds Flow (FFF) in Asian Equity Market For year 2018
• Amid exude of foreign funds in the Asian equity market,
Malaysia’s foreign outflows of USD2.9 billion is relatively small,
equivalent to 0.7% of the total market capitalisation.
% of Market CapitalisationPercentage (%)
1.1
0.4
0.2
0.8
0.7
1.1
4.7
0.4
1.9
Source: Bloomberg
3,3
76
-1,1
20 -6
4
1,5
07
-5,6
04
-4,9
27
-1,6
78
-99
66
-1,4
15
-719
-1,0
22
0%
5%
10%
15%
20%
25%
-9,000
-6,000
-3,000
0
3,000
6,000
9,000
Jan-1
8
Feb-1
8
Mar-
18
Apr-
18
May-1
8
Jun-1
8
Jul-
18
Aug-1
8
Sep-1
8
Oct-
18
Nov-1
8
Dec-1
8
Foreign Funds Flow (lhs)
Foreign Shareholdings (by MarketCapitalisation) (rhs)
Source: Bursa MIS
RMmillion
%
Bursa Foreign Funds Flow vs Foreign ShareholdingsFor year 2018
• Foreign shareholdings (by market capitalisation)
have also been stable amid the exits of foreign
funds.
7
Key Financial Highlights & Market Performance
Financial Highlights
Financial Trends
Securities Market Overview
Derivatives Market Overview
Islamic Capital Market Overview
Dividends
8
Financial HighlightsSustained financial performance despite a challenging year
Increase in operating revenue contributed by higher trades in Securities Market. The increase was
partially offset by lower revenue from Derivatives Market.
Operating expenses decreased mainly due to lower technology costs.
Cost to income ratio improved by 1 percentage point while ROE remained the same.
Second interim dividend of 11.6 sen, equivalent to 92% payout to be paid on 28-Feb-2019.
2018 vs. 2017:
Financial Items 2018
2018
vs.
2017
4Q2018
4Q2018
vs.
4Q2017
Operating Revenue (RM million) 523.3 0.2% 121.0 6.9%
Operating Expenses (RM million) 241.3 3.6% 57.1 14.0%
PATAMI (RM million) 224.0 0.4% 51.9 6.2%
EPS (sen) 27.8 0.4% 6.4 7.2%
Cost to Income Ratio 44%1 percentage
point44%
3 percentage
points
Annualised ROE 26% 25%2 percentage
points
9
Financial TrendsContinuous improvement in key financial indicators
Operating Revenue
(RM mil)
PATAMI
(RM mil)Cost to Income
Ratio (%)ROE (%)
382 389
440 471
488 473
522 523
143 151 173
198 199 194 223 224
2011 2012 2013 2014 2015 2016 2017 2018
17 18
21
25 26
23
26 26
51 49 48
46 46 47 45 44
10
Securities Market OverviewHigher ADV supported by strong performance in the first
9 months of 2018
32 32
1,907
1,700
31 DEC 2017 31 DEC 2018
10.8%
Average Daily Value (“ADV”)
(OMT)(RM mil)
Market Capitalisation (RM bil) Fund Raised from IPOs &
Secondary Market (RM bil)
1,291 1,214
525538
498 640
2017 2018
2,314 2,392
Velocity (%)
1,797
1,691
FBMKLCI
7.4
0.7
14.8
8.5
2017 2018
No. of IPOs
Fund Raised from IPOs
Fund Raised from Secondary Market
ADV of Domestic Institutions
ADV of Retail
ADV of Foreign Institutions Market Capitalisation
13
21
58.6%
3.4%
9.2
22.2
11
ADC - Crude Palm Oil Futures
Volatility of Crude Palm Oil
Prices
Derivatives Market OverviewLower FCPO trades influenced by lower volatility in CPO prices
ADC - OthersADC – FBMKLCI Futures
Volatility of FBMKLCI
Average Daily Contracts (“ADC”)
& VolatilityOpen Interest (No. of Contracts)
8,371 10,278
49,051 43,092
255 3,118
2017 2018
19%16%
5%
10%
85%
15%
76%
18%
2.1%
56,48857,677
6%
28 Aug
2018
317,788
1 Sept 2010
111,548
31 Dec
2018
245,14331 Jan
2017
221,138
12
Islamic Capital Market OverviewHigher trades under volume-based pricing scheme
No. of Shariah Compliant
Stocks (%)
No. of Trading Participants
Bursa Suq Al-Sila’ (“BSAS”)
ADV (RM bil)
Market Capitalisation of
Shariah Compliant Stocks
(RM bil)
No. of Sukuk
Value of Listed Sukuk (USD bil)
Domestic Foreign Market Capitalisation of Shariah
Compliant Stocks
Domestic Foreign
15.1
18.1
4.5
6.2
2017 2018
19.6
24.3
24.4%
141 173
25.4 23.3
30.630.2
31 DEC 2017 31 DEC 2018
56.0
53.5
25
24
4.5%1,154
1,055
31 DEC 2017 31 DEC 2018
8.6%
76% 76%
13
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Mala
yan B
ankin
g
Genti
ng M
ala
ysi
a
CIM
B G
roup H
old
ings
MIS
C
Dig
i.com
IOI C
orp
Petr
onas
Gas
Tenaga N
asi
onal
Petr
onas
Dagangan
Hap S
eng C
onso
lidate
d
Maxis
Sim
e D
arb
y P
lanta
tion
AM
MB H
old
ings
Petr
onas
Chem
icals
Gro
up
Sim
e D
arb
y
RH
B B
ank
Genti
ng
Public B
ank
Hong L
eong B
ank
Hong L
eong F
inancia
l G
roup
Kuala
Lum
pur
Kepong
Axia
ta G
roup
Nest
le M
ala
ysi
a
Top G
love C
orp
Mala
ysi
an A
irport
s H
old
ings
Hart
ale
ga H
old
ings
PPB G
roup
Pre
ss M
eta
l A
lum
iniu
m H
old
ings
Dia
log G
roup
IHH
Healt
hcare
BU
RSA
MA
LA
YSIA
Dividend Yield (annualised) – Bursa vs. FBMKLCI Constituents
@ 31-Dec-18
4.9
Source: Bloomberg and Bursa Malaysia
16.0 16.5 17.0 20.014.0
18.0 18.0 17.018.5
11.6
20.015.0
8.0
2014 2015 2016 2017 2018
Special Dividend
(sen)
2nd Interim Dividend
(sen)
* Exclude special dividend
Payout
94%
Payout
92% *
Payout
93%
Declared second interim dividend of 11.6 sen. The entitlement and payment dates are on the 19th and 28th of
February 2019 respectively.
1st Interim Dividend
(sen)
DividendsTotal dividend of 33.6 sen for FY2018 was declared
%
Payout
93%*
Payout
92%*
14
Financial Review
Financial Snapshot
Operating Revenue
Operating Expenses
15
130.0 121.0
522.1 523.3
4Q2017 4Q2018 2017 2018
0.2%
Financial SnapshotStable performance in 2018 results
Operating revenue (RM mil) Operating expenses (RM mil)
PATAMI (RM mil) Cost to income ratio (%)
6.9%
66.4 57.1
250.4 241.3
4Q2017 4Q2018 2017 2018
14.0%
47
4445
44
4Q2017 4Q2018 2017 2018
3 percentage
points
3.6%
1 percentage
point
55.3 51.9
223.0 224.0
4Q2017 4Q2018 2017 2018
6.2%
0.4%
16
Operating RevenueGrowth from Securities Trading revenue while Non-Trading
revenue remain stable
Increase in Securities Trading Revenue from higher ADV-OMT.
Higher Market Data revenue due to increase in number of subscribers.
Decrease in Derivatives Trading Revenue due to lower number of ADC.
Lower BSAS Trading Revenue despite growth in its ADV due to the impact of
volume-based pricing.
(RM mil)
Total
RM523.3 mil
Total
RM522.1 milGrowth contribution by revenue streams:
522.1
- - - - - - - -
523.3
2017 2018
Securities Trading Revenue
Derivatives Trading Revenue
Listing & Issuer Services
Depository Services
Market Data
Member Services & Connectivity
BSAS Trading Revenue
Conference Fee & Exhibition Related Income
259.6 265.8
80.6 76.7
15.8 14.9
61.8 60.1
42.4 42.2
34.5 36.2
21.4 21.96.0 5.5
2017 2018
0.2%2.4%
+6.2 -3.9
-0.9-1.7
-0.2+1.7
+0.5 -0.54.8% 5.6%
2.7% 0.5% 4.9%2.0% 7.9%
17
Total
RM250.4 milTotal
RM241.3 mil
Operating ExpensesReduction in technology costs and lower manpower costs
Note^ - Other operating expenses include building maintenance, administrative expenses and CDS expenses.
Lower Depreciation as certain IT assets have fully depreciated.
Decrease in Service Fees due to lower Globex fees resulting from lower number of
derivatives contracts traded.
Staff Costs
Depreciation & Amortisation
Marketing & Development
IT Maintenance
Service Fees
Other Operating Expenses^
137.5 135.3
23.8 22.0
11.4 12.0
19.6 18.3
23.419.2
34.734.5
2017 2018
3.6%
(RM mil)
Movement of expenses:
250.4
241.3
2017 2018
-2.2
-1.8
+0.6 -1.3
-4.2
-0.2
1.6%
7.7% 5.1%6.4%
17.9% 0.6%
18
Highlights & Conclusion
Highlights of 2018 Initiatives
Moving Forward
19
Highlights of 2018 Initiatives
Create a More Facilitative
TRADING ENVIRONMENT
SI 1
REGIONAL MARKETPLACE
with Global Access
(Centre of ASEAN)
Implementation of Intra Day Short Selling (IDSS) for all investors.
Introduction of a new category of traders known as “trading specialists” who
trade on their own account.
Launched the “Invest Bursa, Invest in You” campaign.
Expanded Green Lane incentives to reward companies for good corporate
governance and disclosure practices.
Facilitate More
TRADABLE ALTERNATIVES
Enhancements of FCPO contract.
Introduced enhanced US Dollar denominated Palm Olein Futures Contract
(FPOL).
Launched the Mini FTSE Bursa Malaysia Mid 70 Index Futures Contract (FM70).
Waiver on trading and clearing fees for 6 months for new individual investors.
Liberalisation of margin financing rules.
Introduction of volume-based incentive programme.
Launched BURSASUSTAIN, a comprehensive online portal designed as a one-
stop knowledge and information hub on corporate governance and
sustainability.
Announced new sector classification and sectorial index series.
Enhanced ETF Framework to spur further growth and innovation in the market.
Reshape
MARKET STRUCTURE &
FRAMEWORK
SI 2
SI 3
SI 4 Organised the Palm and Lauric Oils Price Outlook Conference & Exhibition
2018.
Organised the Shariah Investing Fair 2018.
20
Moving Forward
SECURITIES MARKET• The Securities Market performance in 2019 is expected to be influenced by domestic and global
developments such as Malaysia’s corporate earnings results, United States-China trade tension and
China’s economic growth, amongst others.
• Nevertheless, the market is expected to continue to be resilient given the country’s sound economic
fundamentals, and the market’s diversified economic sectors and investor base.
DERIVATIVES MARKET• Developments in global markets in 2019 will have an impact on commodities, equities and financial
assets which will influence trading and hedging activities.
• The ongoing initiatives to attract new participants is expected to further broaden the derivatives
trading community.
ISLAMIC CAPITAL MARKET• With the continuous engagement and effective marketing efforts carried out in 2018, the Exchange
expects greater participation of institutional investors on the Bursa Malaysia-i platform.
• Bursa Suq Al-Sila’, on the other hand, will continue to be expanded in its global reach into selective
African and Central Asian countries as well as its services being promoted to local non-bank financial
institutions.
Notwithstanding the challenges ahead, Bursa Malaysia will continue with its initiatives to enhance the
breadth and depth of the ecosystem through, amongst others, capitalising on technology to improve
market efficiency and trading experience, and greater diversification of the investor base.
21
2018 Financial Results Analyst & Media Briefing
Q&A
22
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
23
2,161
1,579 1,732
1,341
1,841
1,439 1,595
1,430 1,643
2,308
2,002
1,686
2,068 2,053 2,196
1,901 2,081
1,913 1,933 2,042 1,981
1,842 1,740 1,690
2,378
2,621
1,951
2,316
2,716 2,730
2,227
1,929
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
42
3034
27
34
27 2825
28
3731
2530 29 30 28 30 28 29 30 29 27 26 25
34 35
2631
35 37
30 28
34 34 33 3328 30 29 30
2732 32
1,181 1,129 1,454
1,699 1,573 1,915
2,053 1,991 1,812
2,314 2,392
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Turnover Velocity (%)
Quarterly ADV Traded & Velocity
Average Daily Value Traded (RM mil)
Average Daily Value Traded (RM mil)Turnover Velocity (%)
Annual ADV Traded & Velocity
Securities Market Trading Activity
24
283
369 392 442
354 424
530
464
372
525
538
7667 73 74 77 78 74 77 79 77 78
2433 27 26 23 22 26 23 21 23 22
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
5873 73 74 74 74 76 73 73 78 73
4227 27 26 26 26 24 27 27 22 27
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
From 2008 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics
were based on Bursa’s internal system.
Retail
(%)
Institutions
(%)Local(%)
Foreign(%)
Retail ADVTraded (RM mil)
Foreign ADV
Traded (RM mil)
Retail vs. Institution Foreign vs. Local
Securities Market Trading Participation
496
323 392 437 404
507 492 544
491 506
647
25
Securities Market Foreign Ownership
22.3
23.1
24.4
24.0
24.3
22.8
22.322.322.322.4
22.7
22.923.0
23.423.423.323.3
23.123.2
23.4
23.6
24.224.124.1
23.9
23.523.6
23.623.4
23.7
23.4
2010
2011
2012
2013
2014
2015
2016
Jan-1
7
Feb-1
7
Mar-
17
Apr-
17
May-1
7
Jun-1
7
Jul-
17
Aug-1
7
Sep-1
7
Oct-
17
Nov-1
7
Dec-1
7
Jan-1
8
Feb-1
8
Mar-
18
Apr-
18
May-1
8
Jun-1
8
Jul-
18
Aug-1
8
Sep-1
8
Oct-
18
Nov-1
8
Dec-1
8
Based on Market Capitalisation (%)
26
-10,000
-5,000
0
5,000
10,000
2015
TNFO: RM19.7 bil
2013
TNFI: RM2.6 bil
2014
TNFO: RM6.9 bil
TNFI: Total Net Foreign Inflow
(RM mil)
TNFO: Total Net Foreign Outflow
Foreign Inflow/Outflow
Monthly foreign inflow/outflow from 2013 to 2018
959
3,376
-1,120
-64
1,507
-5,604-4,927
-1,678
-99
66
-1,415
-719-1,022
-7,000-6,000-5,000-4,000-3,000-2,000-1,000
01,0002,0003,0004,000
Monthly foreign inflow/outflow from Dec 2017 to Dec 2018(RM mil)
2016
TNFO: RM3.2 bil
2018
TNFO: RM11.7 bil
2017
TNFI: RM10.8 bil
27
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
17%
136
162171
152
174
146
172
214
196
213
204196
218
239
288
196
207
229
235
230
283
293
226
237
262263
261
295
283
290
306
245
40
Quarterly Average Daily Contracts (’000)
31
42
35
60
Total Annual Contract (mil)
Crude Palm Oil FuturesOthersOpen Interest (’000)
18%
76%
6.1 6.1 6.2
8.4
9.6
FBMKLCI Futures
37
`
`
71
%3234
4445
4246
42
10.7
50
12.5
44
54
Derivatives Market Activity
55
14.2
62
51
62
56
14.0
5856
62
55
14.1
57 5754
156
123
132
152
214196 196
230
237
295
245
54
13.7
5658
`
`
12%
6%
59
28
15 20 21 19 15 18 20 18 14 11 14
46
5244
42
2828 24
23
1918
25
2
3
22
21 2
5
33
3
37
2633
37
55 53 54 55
6468
58
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
(%)FKLI
27
36 34 34 36 33 34 31 2823
18
3827
26 24 1917 15
1516
2024
1
11
1 11
1 1
15 17
1513
12
10 15 2121 23
20
20 1925 28
3239
35 32 34 3337
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
(%)FCPO
1
Local
Domestic Retail
Domestic
Institutions
Foreign Institutions Local
Domestic RetailDomestic
Institutions
Foreign Institutions Foreign Retail
Derivatives Market Demography
29
0.9 1.6 2.75.5
13.5 13.4 15.118.1
0.2 0.7 1.2
1.4
1.7 2.94.5
6.2
2011 2012 2013 2014 2015 2016 2017 2018
BSAS Annual Average Daily Value
Local ADV Foreign ADV
1.22.3 3.9
6.9
15.2 16.319.6
24.3(RM bil)
BSAS ADV (RM bil)
13.5
0.8 0.9 1.1 1.1 1.3 1.5 1.6 1.8 2.6 2.4 2.7 3.2 3.7 3.7 5.9
8.5 10.4 12.0 14.4
16.9 16.1 12.7 12.2 12.6 13.6 15.1 15.5 16.1 16.2
14.3 15.9
25.7
0.2 0.2 0.2 0.3 0.3 0.7 0.9 1.2 1.1 1.0 1.1 1.5 1.4 1.5
1.4
1.4 1.5
1.6 1.6
2.1 2.6
2.7 3.0 3.2 3.8
3.7 4.9 5.6 6.4 5.9
5.7
6.8
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
BSAS Quarterly Average Daily Value(RM bil)
Islamic Capital Market Activity
DISCLAIMER:
Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this presentation. Whilst the company endeavors to ensure that
the contents in this presentation 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.
Copyright Bursa Malaysia Berhad 2017 (30632-P)
www.bursamalaysia.com
RASMONA ABDUL RAHMAN
603-2034 7175
E-mail : [email protected]
RAFIDAH AZIZ
603-2034 7262
ADAM ISKANDAR AHMAD ZAHAR
603-2034 7351
INVESTOR RELATIONS CONTACT INFORMATION
