KUALA LUMPUR, MALAYSIA: Malaysia's stock market operator said Friday (18 Apr) its net profit shrank 40% in the first quarter as the U.S. credit crisis and domestic political uncertainties sapped trading activity.
Bursa Malaysia Bhd. said its net profit in the three months through March was 42.1 million ringgit (US$13.4 million) compared to 70.2 million ringgit a year earlier.
Revenue fell to 101.3 million (US$32.2 million) from 136.1 million last year.
"This was mainly attributed to a decrease in trading revenue from the equity market as a result of investor caution towards the escalating (U.S.) subprime related issues and recent local political issues," Bursa Malaysia said.
Prime Minister Abdullah Ahmad Badawi's ruling coalition suffered its worst performance ever in March 8 general elections, losing control of five states to the opposition and failing to retain its traditional two-thirds majority in Parliament.
Bursa Malaysia warned that meeting its key performance targets for 2008 may prove a challenge if market sentiment does not improve.
"Developments on the local political front are expected to continue to influence the market performance in the remaining quarters although underlying economic and business fundamentals remain intact," Bursa Malaysia said.
Associated Press
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