KUALA LUMPUR: Kenanga Research has cut its FY22 earnings forecast on Bursa Malaysia Bhd
in anticipation of softening average daily trading volume (ADV) due to cautious market sentiment and a lack of catalysts.
"We foresee 2022 ADV to soften YoY to RM2.39b (from our earlier RM3b expectations).
'This continues the FY21 trend of QoQ softening of ADV premised on weaker market sentiment on likely stemmed by Fed/BNM rate hikes, lack of
catalyst across local sectors, and continued softening of retail ADV with substantial downside risks due to elevated FY21 levels.
The research firm expects a further softening of ADV in 2023 to RM2.26bil as ADV continues to normalise form the retail trading frenzy in FY20 and FY21.
Consequently, Kenanga lowered its FY22 earnings projection by 9%.
It also introduced an earnings forecast of RM275mil or FY23, which is a marginal 2% decline from FY22, on softer ADV.
It maintained "market perform" with a lower target price of RM5.85 from RM7.60 previously.
in anticipation of softening average daily trading volume (ADV) due to cautious market sentiment and a lack of catalysts."We foresee 2022 ADV to soften YoY to RM2.39b (from our earlier RM3b expectations).
'This continues the FY21 trend of QoQ softening of ADV premised on weaker market sentiment on likely stemmed by Fed/BNM rate hikes, lack of
catalyst across local sectors, and continued softening of retail ADV with substantial downside risks due to elevated FY21 levels.
The research firm expects a further softening of ADV in 2023 to RM2.26bil as ADV continues to normalise form the retail trading frenzy in FY20 and FY21.
Consequently, Kenanga lowered its FY22 earnings projection by 9%.
It also introduced an earnings forecast of RM275mil or FY23, which is a marginal 2% decline from FY22, on softer ADV.
It maintained "market perform" with a lower target price of RM5.85 from RM7.60 previously.
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