Bursa Malaysia’s third quarter 2024 (3Q24) Average Daily Volume (ADV) of RM3.52 billion is within market expectation, leaning into an earnings range of RM75 million – RM80 million, as the exchange holding company predicts year-end trading volume in line with positive market development.
Analysts have cited factors that will keep the local market vibrant coming to year-end, including the return of foreign investors, post-Budget 2025 clarity especially in November and December that encourages entry into the stock market, as well as strengthening ringgit that could possibly trigger profit-taking and thus adding to the trading volume.
On the backdrop of the ringgit’s appreciation, investors may also position themselves with net importers that are set to benefit from cost savings in the coming quarters.
With 39 Initial Public Offerings (IPO) out of 42 targeted for 2024 already met, Bursa believes it could well achieve up to 50 in 2025, encompassing heavyweight sectors such as healthcare and telecommunications.
Analysts believe more IPO listing could be stimulated by the more robust trading environment with widespread participation which could encourage sentiment as fairer valuation could be met.
Also, Bursa is mulling on a formalised framework where listed companies may be given targets related to fundamentals such as valuation, return on equity and liquidity as a bid to improve the overall quality of Malaysian equities to better attract investors.
Kenanga Investment Bank Bhd’s ADV outlook for Bursa for 2024 and 2025 remains unchanged at RM3.5 billion to RM3.6 billion.
Kenanga Research maintains its MARKET PERFORM call and sets a target price of RM10.00 for Bursa.
As at 10:25am Oct 8, Bursa Malaysia, the exchange holding company, traded at RM9.48. (Stock updates from www.klsescreener.com)
