KUALA LUMPUR: RHB Research has reduced Bursa Malaysia Bhd's core profit forecast for fiscal year 2023 (FY23) by two per cent, citing a lower initial public offering (IPO) assumption of 31 from 37 previously.
However, the firm raised its Bursa forecasts for FY24–FY25 by two per cent as it reduced its operational expenditure assumption to better align with the corporate internet reporting (CIR) guidance.
It noted that Bursa's nine-month headline net profit of RM192.8 million was 79 percent of what was expected but exceeded full-year forecasts by 82 per cent.
It also said that October's securities average daily value of RM2.24 billion, which was down seven per cent month on month, could indicate a slowing in trading momentum, which is suspected due to weakened investor sentiment on Asian equities.
"Nevertheless, we expect trading activity to rebound moving into 2024, in line with RHB Economics' view of improving growth in the Asian and domestic economies.
"Elsewhere, Bursa has stepped up efforts to encourage listings on the LEAP market, including publishing a new framework for transfers from the LEAP to the ACE market.
"In the meantime, the group is also exploring new products to be introduced via the data business and Bursa Carbon Exchange," it added.
RHB Research kept its "buy" call on Bursa but raised its target price to RM7.60 from RM7.50 previously.