KUALA LUMPUR: RHB Research has maintained its Buy on Bursa Malaysia with a target price of RM9.10 which is based on a target 2015 price per earnings of 25 times.
In a note on Tuesday, RHB said Bursa is a proxy and a likely beneficiary of the ongoing rollout of the Economic Transformation Programme.
Meanwhile, on the retail front, macro factors look positive – thanks to the country?s young, growing workforce as well as high savings rate.
"This could be further boosted if foreign retail participation picks up following the launch of the Asean Trading Link, although we see this as a longer-term positive. Assuming our full-year ADV assumption of RM2bil is achieved, this could be Bursa?s strongest performance since 2007," it said.
It added that Bursa's 3Q14 results within expectations.
Bursa reported 3Q14 net profit of RM53mil which was broadly within expectations.
"Its 9M14 net profit of RM145mil accounted for 78% of our and 76% of consensus full-year estimates.
"We leave our FY14F net profit unchanged as 4Q is typically a slower season for the securities market while staff costs (mainly a variable component) tend to be higher," it said.
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