KUALA LUMPUR, April 16 — RHB Research has maintained its “buy” call on Bursa Malaysia Bhd but revised lower its target price to RM10.30 from RM10.80 recently on the back of an earlier-than-expected normalisation.
In a note today, the research firm said both equities and derivatives stayed active during first quarter of 2021 (1Q21) with equity securities average daily value (SADV) even inched higher quarter-on-quarter (QoQ) and it was well above RM5 billion in all three months.
The local bourse saw a total of 516 billion of trading volume worth RM310 billion in 1Q21, it said.
“We observed that the momentum has moderated since late March when SADV struggled to hit RM4 billion based on the high frequency data.
“There were only three days where the daily amount of SADV surpassed RM4 billion, out of the 16 days, since March 24 versus two days from Jan 4 to March 23, one of them being half-day trading,” it shared.
RHB Research said although it is still premature to conclude that equity trading on Bursa Malaysia will continue to lose steam from now onwards, it expects SADV to moderate from the exceptional 2020 and come earlier than previously expected, that is in the second half this year (2H21).
For trading in derivatives, RHB Research said it was active during 1Q21 as well with the average daily contracts traded rebounded 14 per cent QoQ despite being 6.0 per cent YoY lower while in 1Q20 the market saw a high volatility due to the pandemic and lockdowns around the globe.
Moving forward, the research house said the near-term risk for Bursa Malaysia includes the potential fourth infection wave and vaccine shortages.
As at 11.01am, Bursa Malaysia shares eased five sen to RM8.55, with 374,800 shares changing hands. — Bernama