{"id":7911,"date":"2021-01-21T12:32:53","date_gmt":"2021-01-21T04:32:53","guid":{"rendered":"https:\/\/newmalaysiatimes.com\/?p=7911"},"modified":"2021-01-21T12:33:00","modified_gmt":"2021-01-21T04:33:00","slug":"continued-volatility-amid-mco-2-0-to-spur-trading-on-bursa-malaysia","status":"publish","type":"post","link":"https:\/\/newmalaysiatimes.com\/?p=7911","title":{"rendered":"Continued volatility amid MCO 2.0 to spur trading on Bursa Malaysia"},"content":{"rendered":"\n

KUALA LUMPUR, Jan 21 — AmInvestment Bank Bhd (AmInvest) expects the continued volatility due to the rise in the daily tally of COVID-19 cases and uncertainties during the current Movement Control Order (MCO 2.0) would spur securities and derivatives trading on Bursa Malaysia.<\/p>\n\n\n\n

In a note today, it said the continued volatility bodes well for active trading in the securities and derivatives markets. <\/p>\n\n\n\n

\u201cWe see value re-emerging on Bursa Malaysia Bhd\u2019s (Bursa) stocks, providing opportunities to accumulate after the retreat in the share price from a high of RM10.98,\u201d it said.<\/p>\n\n\n\n

The investment bank expects markets to remain volatile in the near term, pending clearer signs of a firmer economic recovery. <\/p>\n\n\n\n

On Bursa\u2019s financial results, AmInvest projects that the local stock exchange operator would see a lower fourth quarter of 2020 (Q4 2020) earnings, easing 1.9 per cent quarter-on-quarter to RM119.6 million from RM121.9 million in Q3 2020.<\/p>\n\n\n\n

\"volatility\"<\/figure><\/div>\n\n\n\n

It said that the projection is based on the lower daily average trading value (DATV) for securities market, despite the improvement in the derivatives trading revenue.<\/p>\n\n\n\n

\u201cThis will bring Bursa\u2019s full financial year ended Dec 31, 2020\u2019s (FY20) earnings to RM391.6 million (which is an increase of 110.1 per cent year-on-year), thus above our earlier estimate of RM373.5 million, supported by higher securities and derivatives trading revenue,\u201d it said.<\/p>\n\n\n\n

AmInvest said Bursa is scheduled to release its Q4 2020 results on Feb 2, 2021.<\/p>\n\n\n\n

Overall, AmInvest has upgraded its recommendation on Bursa to a \u201cbuy\u201d from \u201chold\u201d call,  with a higher fair value of RM9.65 from RM9.50 per share previously.<\/p>\n\n\n\n

The investment bank also raised the company\u2019s FY20\/21 earnings forecast by 4.9 per cent\/7.3 per cent, factoring in higher DATV of RM4.2 billion\/RM3.2 billion (previously: RM3.8 billion\/RM2.7 billion) for the securities market. <\/p>\n\n\n\n

\u201cAlso, we have raised our assumptions for the average daily contracts (ADC) traded for derivatives in FY20\/21 to 73,000\/75,920. <\/p>\n\n\n\n

\u201cWe are now pegging the stock to FY21 price-to-earnings ratio (PER) of 26 times from 28 times previously, in line with the average of listed stock exchanges regionally,\u201d it said.<\/p>\n\n\n\n

At 10.58 am, Bursa\u2019s share lost five sen to RM8.73, with 210,200 shares traded.<\/p>\n\n\n\n

— BERNAMA<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

KUALA LUMPUR, Jan 21 — AmInvestment Bank Bhd (AmInvest) expects the continued volatility due to the…<\/p>\n","protected":false},"author":1,"featured_media":7912,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,524],"tags":[],"class_list":["post-7911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-nation"],"featured_image_urls":{"full":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77.jpg",1110,694,false],"thumbnail":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77-150x150.jpg",150,150,true],"medium":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77-300x188.jpg",300,188,true],"medium_large":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77-768x480.jpg",640,400,true],"large":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77-1024x640.jpg",640,400,true],"1536x1536":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77.jpg",1110,694,false],"2048x2048":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77.jpg",1110,694,false],"newsium-slider-full":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77.jpg",1110,694,false],"newsium-featured":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77.jpg",1024,640,false],"newsium-medium":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/01\/f80dd2cf2420c6c774045be6b020e3dd5e993c1e90a77.jpg",720,450,false]},"author_info":{"info":["Editor"]},"category_info":"Economy<\/a> Nation<\/a>","tag_info":"Nation","comment_count":"0","_links":{"self":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts\/7911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7911"}],"version-history":[{"count":2,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts\/7911\/revisions"}],"predecessor-version":[{"id":7914,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts\/7911\/revisions\/7914"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/media\/7912"}],"wp:attachment":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}