Bursa Malaysia Bhd, the nation’s stock and derivatives exchange operator, rose to a six-month high after brokerages including Credit Suisse Group AG raised their share-price estimates to reflect better growth prospects.
The stock gained as much as 2.7 per cent to RM7.72 in Kuala Lumpur trading, the highest intraday level since July 29.
It traded at RM7.60 at 11.51 am local time. Fourth- quarter net income rose 5.2 per cent to RM31.3 million (US$10.3 million), bolstered by higher trading revenue on the derivatives market, it said in a statement yesterday.
“Bursa’s earnings are highly leveraged to improving market activity, with January 2012 volumes boding well,” Arjan van Veen, an analyst at Credit Suisse, wrote in a report today.
“Bursa has capacity to lift pricing as well as utilize the current excess capital on its balance sheet.”
He raised his price estimate to RM7.50 from RM6.94 and kept his “neutral” rating.
The average daily trading volume on the Southeast Asian nation’s stock exchange jumped 20 per cent to 1.8 billion shares in the past three months compared with the same period a year earlier, according to data compiled by Bloomberg.
Trading volume surged to 4.4 billion shares at the close on Feb 8, the highest since February 2007. Derivatives trading also surged, led by palm oil futures.
CIMB Group Holdings Bhd increased its price estimate for Bursa to RM7.65 from RM7.18, while Kenanga Investment Bank Bhd raised its target price to RM8 from RM7.40, they said in separate reports today.
Chan Ken Yew, an analyst at Kenanga, increased his 2012 earnings estimates by 5.3 per cent and 13 per cent for 2013.
The stock exchange operator’s 2012 profit may be similar to last year’s “if not better,” Bursa Chief Executive Officer Tajuddin Atan told reporters in Kuala Lumpur yesterday.
The bourse is open to strategic alliances to boost market access and improve efficiency, he said, without giving details.
Shares of Bursa have gained 13 per cent this year, outpacing a 2.1 per cent increase in the benchmark FTSE Bursa Malaysia KLCI Index. - Bloomberg
The stock gained as much as 2.7 per cent to RM7.72 in Kuala Lumpur trading, the highest intraday level since July 29.
It traded at RM7.60 at 11.51 am local time. Fourth- quarter net income rose 5.2 per cent to RM31.3 million (US$10.3 million), bolstered by higher trading revenue on the derivatives market, it said in a statement yesterday.
“Bursa’s earnings are highly leveraged to improving market activity, with January 2012 volumes boding well,” Arjan van Veen, an analyst at Credit Suisse, wrote in a report today.
“Bursa has capacity to lift pricing as well as utilize the current excess capital on its balance sheet.”
He raised his price estimate to RM7.50 from RM6.94 and kept his “neutral” rating.
The average daily trading volume on the Southeast Asian nation’s stock exchange jumped 20 per cent to 1.8 billion shares in the past three months compared with the same period a year earlier, according to data compiled by Bloomberg.
Trading volume surged to 4.4 billion shares at the close on Feb 8, the highest since February 2007. Derivatives trading also surged, led by palm oil futures.
CIMB Group Holdings Bhd increased its price estimate for Bursa to RM7.65 from RM7.18, while Kenanga Investment Bank Bhd raised its target price to RM8 from RM7.40, they said in separate reports today.
Chan Ken Yew, an analyst at Kenanga, increased his 2012 earnings estimates by 5.3 per cent and 13 per cent for 2013.
The stock exchange operator’s 2012 profit may be similar to last year’s “if not better,” Bursa Chief Executive Officer Tajuddin Atan told reporters in Kuala Lumpur yesterday.
The bourse is open to strategic alliances to boost market access and improve efficiency, he said, without giving details.
Shares of Bursa have gained 13 per cent this year, outpacing a 2.1 per cent increase in the benchmark FTSE Bursa Malaysia KLCI Index. - Bloomberg
