Chief Executive Officer's Message

FINANCIAL REVIEW

2008 was a very challenging year for us, with quarter-on-quarter profits showing a downward trend. We ended the year with a profit after tax of RM104.4 million, a 57% reduction compared to 2007.

1. Operating Revenue

Total revenue amounted to RM290.3 million, down by 35%. Despite the poor performance of the securities market in 2008, this sector remained the largest contributor to Bursa Malaysia's operating revenue.

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a. Equities Trading Revenue

Equities trading revenue which declined by 54% to RM136.8 million was affected by cautious investor sentiment. The downward revision in clearing fees was intended to spur investor interest and trading activities. However, volumes responded more to global pressure and daily average trading value declined by 43% to RM1.3 billion.

b. Derivatives Trading Revenue

Trading revenue from the derivatives market was fairly stable at RM43.6 million. The number of contracts traded also showed little change. The total number of contracts traded in 2008 was 6.1 million compared to 6.2 million in 2007. Our FCPO benefited from the volatility in palm oil prices, while our FKLI traded with caution throughout the year. The performance of our key derivatives products is as follows:

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