Bursa M’sia’s 3QFY17 earnings expected to fall within estimates
KUCHING: Bursa Malaysia Bhd’s ( Bursa Malaysia) third quarter of financial year 2017 (3QFY17) earnings are expected to fall within analysts’ estimates.
The research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research) expected bottomline to come in between RM47 million and RM51 million, or growth of around 6.6 per cent year on year ( y- o-y).
“The expected earnings expansion will be driven by stronger average daily value ( ADV) traded for securities market (OMT) and marginally higher average daily contracts ( ADC) traded in derivatives market,” MIDF Research said.
Overall the results are still expected by the research arm to fall within its estimates.
According to MIDF Research, ADV traded in 3QFY17 has increased to RM1.9b (+9.0 per cent y- o-y).
The research arm believed the upsurge in ADV was driven by the increase in trading activities among investors identified as foreign.
“Note that in the week ended September 29, the net amount off loaded by global investors reached - RM967.3 million.
“Notably, this was the highest weekly attrition recorded since the week ended November 18 last
The expected earnings expansion will be driven by stronger average daily value (ADV) traded for securities market (OMT) and marginally higher average daily contracts (ADC) traded in derivatives market.
year,” it said.
On a quarterly basis, MIDF Research observed that the amount offloaded has reached a net total of minus RM558.3 million in 3QFY17.
The research arm believed that these net selling activities were mainly driven by market uncertainties, stemming from ongoing geopolitical tensions.
On estimates, MIDF Research retained its FY forecasts at this juncture as the research arm expected the impending results to come in line with its estimates.
Cor responding ly, MIDF Research maintained its ‘neutral’ stance on Bursa Malaysia with an unchanged target price of RM11.00 per share.
The research arm’s valuation was based on FY18 earnings per share ( FY18EPS) of 43.4sen
MIDF Research
pegged to Bursa Malaysia’s fiveyear historical average of 25-fold (one- standard deviation below).
“However, we do not preclude the possibilities of an upward revision to our valuat ion following the upcoming 3QFY17 results announcement,” it said.