{
  "id": 15839798,
  "title": "Derivatives strength to cushion Bursa Malaysia's Q3 earnings",
  "url": "https://urgent.news/2026/10/21/derivatives-strength-to-cushion-bursa-malaysias-q3-earnings",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-21T03:12:35.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/10/1560384/derivatives-strength-cushion-bursa-malaysias-q3-earnings"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: Bursa Malaysia Bhd is anticipated to maintain relatively stable earnings in the third quarter (Q3) of 2026, backed by heightened derivatives trading activity and extra trading days. Hong Leong Investment Bank Bhd (HLIB) anticipates Bursa Malaysia's slightly weaker average daily trading value (ADV) in Q3 2026 to be countered by a higher average daily contracts (ADC) from derivatives. HLIB predicts Bursa Malaysia's quarterly earnings for the period to be RM70 million, resulting in a total of RM215 million for the nine months of 2026, which is 75% or 76% of their consensus full-year forecast.\n\nBursa Malaysia is set to disclose its Q3 2026 results on October 28. HLIB incorporated the anticipated quarterly decline in ADV into their full-year estimate of RM3.05 billion, which they believe is still feasible considering the year-to-date ADV of RM3.18 billion. They have identified several factors that could bolster ADV, including the growth of the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI), the 16th General Election (GE16), and a potential downgrade of Indonesia by MSCI.\n\nHLIB maintains a 'Buy' rating on Bursa Malaysia, although their target price has been revised to RM9.38. Despite year-to-date ADV matching the annual high post-pandemic in 2024, Bursa Malaysia's market capitalisation-to-ADV ratio is still 0.3 standard deviation below the post-global financial crisis average.",
  "summary": "KUALA LUMPUR: Bursa Malaysia Bhd is expected to record largely stable earnings in the third quarter (Q3) of 2026, supported by stronger derivatives trading activity and additional trading days.",
  "key_points": [
    "Bursa Malaysia expected to maintain stable Q3 2026 earnings of RM70 million",
    "Derivatives trading activity and extra trading days to cushion earnings",
    "HLIB predicts Bursa Malaysia's Q3 2026 ADV to be higher than average"
  ],
  "editors_take": "Increased derivatives trading volume provides a vital buffer against declining equity values, ensuring the exchange maintains stable earnings despite a projected slowdown in average daily trading value.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}