Stock Market – Kenanga positive aspects from strong stock market

PETALING JAYA: Kenanga Funding Bank Bhd has benefited from a strong stock market with its pre-tax revenue for the primary 9 months of its monetary yr 2020 rising to greater than a decade excessive.

Pre-tax revenue for the three quarters of its monetary yr hit RM81.6mil whereas pre-tax revenue for the third quarter topped RM63.3mil, a seven-fold hike from the identical interval final yr.

Earnings had been largely pushed by elevated brokerage charges, larger internet curiosity earnings, buying and selling and funding earnings, in addition to administration charge earnings, the funding bank mentioned.

It additionally recorded a share of earnings from its joint-venture firm, Rakuten Commerce.

For the quarter beneath evaluation, Kenanga mentioned its internet earnings stood at RM289.5mil, a surge from the corresponding interval of RM110.5mil. Web earnings for the nine-month interval ended Sept 30,2020, stood at RM577mil, a rise of 72% from the identical interval final yr.

“This yr has been a unprecedented yr for the fairness markets globally, boosted by heightened retail participation. Kenanga Group’s robust foothold within the retail section, augmented by digital transformation that we kick-started a couple of years in the past, put us in a pole place this yr to capitalise on sudden buyer shift to on-line broking and the surge in buying and selling volumes.

“Regardless of the extraordinary aggressive panorama, we proceed to develop market share and intention to maintain this traction by new digital merchandise and progressive options which are within the pipeline, ” commented group managing director Datuk Chay Wai Leong.

“On many levels, this year has validated the importance of being in the forefront of technology. We are on track with our digitisation blueprint and will continue to build a robust ecosystem for our customers, accelerate growth, reinforce resilience and safeguard the interests of our stakeholders. It has been a strong year for us and we are well-positioned to move into the new year on a positive note, ” he mentioned.

Taking a look at digital merchandise included Kenanga’s acquisition of 4.99% fairness curiosity in Merchantrade Asia, an e-money participant to discover digital alternatives, it mentioned.

Kenanga additionally introduced a partnership with provide chain financing firm, Bay Group Holdings Sdn Bhd (CapBay), in a bid to rework the normal factoring market in Malaysia.

These ventures be part of a three way partnership with Japan-based Rakuten Inc to introduce Rakuten Commerce as the primary totally on-line stock buying and selling platform in Malaysia.

Kenanga had additionally this yr offered its first-in-the market algorithmic buying and selling calls, which generates buying and selling methods for the retail section.

The group is anticipated to roll-out a robo-advisory platform by the primary quarter of subsequent yr.