by ANIS HAZIM / pic MUHD AMIN NAHARUL

MAYBANK Investment Bank Bhd (Maybank IB) has maintained its ‘Hold’ call on Bursa Malaysia Bhd at a lowered target price (TP) of RM6.26 based on an unchanged 22 times price earnings ratio, with a potential total return of 1.3% including dividend yield.

Its analyst Wong Chew Hann said Bursa Malaysia’s second quarter of 2022 (2Q22) results were in line with Maybank IB’s view, bringing the first half of 2022 (1H22) net profit to 54%/53% of its consensus of the financial year 2022 estimates (FY22F).

“We however lower FY22/FY23/FY24F net profit by 10%/11%/10% on lower equity average daily volume (ADV) forecasts,” Wong said in a note today.

She noted that Bursa Malaysia’s 2Q22 net profit of RM60 million brought its 1H22 to RM127 million, while equity ADV normalised further to RM2.23 billion in 2Q22 on a lower velocity of 30%.

However, for months-to-date’s (July) equity, ADV has retraced further to RM1.35 billion.

“We lower our equity ADV forecast for 2022 to RM2.2 billion from RM2.5 billion based on revised FY22 KLCI target of 1,500 implying RM1.7 trillion exchange market value at year-end and lower trading velocity,” she said.

Over at derivatives, crude palm oil (CPO) futures or total contracts were down 5% year-on-year despite the CPO price rally.

“For derivatives, we now forecast net impaired loan (nil) growth in contracts in 2022 versus 3% in 1H22,” she added.