Bursa’s FY19 to close with CNP of RM183.3 million

KUCHING: Bursa Malaysia Bhd’s (Bursa) financial year 2019 (FY19) is projected to close with core net profit (CNP) of RM183.3 million, while 2020 looks to be be er, analysts opine.

According to the research arm of Kenanga Investment Bank Bhd (Kenanga Research), full-year average daily values (ADV) stands at RM1.93 billion, slightly short of its expectation of RM1.97 billion.

From its extractions from Bloomberg, the fourth quarter of FY19 ( 4QFY19) ADV came in at RM1.79 billion versus Kenanga Research’s expected RM1.95 billion.

“Much like the prior year (2018), market forces were tepid and failed to muster an anticipated window dressing during the final trading hours,” the research arm said in a company update on the bourse.

“The FBM KLCI also closed weaker at 1,588.76 pts, down six per cent year on year (y-oy), against hopes that it could trail at technical support levels of 1,600.

“To recap, 2019 poor trading sentiment could be a ributed to paring down of contract values of various mega projects, disruptive US-China trade wars and local currency weakness.”

Moving forward, 2020 looks to be be er, Kenanga Research opined.

“In the first few trading days for 2020, year to date (YTD) January 13, the market was spurred by the rise of crude palm oil (CPO) prices during the tail-end of 2019 (rising from RM2,000 per metric tonne (mt) to circa RM2,600 per mt, painting a more robust ADV of RM1.88 billion (from

RM1.84 billion in the same 2019 period).”

Kenanga Research highlighted that the boon to plantation counters could reinvigorate the sector from its previous lull.

Coinciding with the research arm’s strategist’s view, the construction sector may also see new excitement with the possible revival of megaprojects much needed to induce economic activity.

“Meanwhile, though USChina trade war tensions are still ongoing, its damage to market sentiment seems to be easing and may stir less discomfort to foreign investors.

“Our in-house FBM KLCI target for 2020 is 1,712.00 pts with US dollar-ringgit rates at 4.100.”

Much like the prior year (2018), market forces were tepid and failed to muster an anticipated window dressing during the final trading hours. Kenanga Research