KUALA LUMPUR: Kenanga Research has reduce its FY22 earnings forecast on Bursa Malaysia Bhd
in anticipation of softening common day by day buying and selling quantity (ADV) as a consequence of cautious market sentiment and a scarcity of catalysts.
“We foresee 2022 ADV to melt YoY to RM2.39b (from our earlier RM3b expectations).
‘This continues the FY21 pattern of QoQ softening of ADV premised on weaker market sentiment on doubtless stemmed by Fed/BNM fee hikes, lack of
catalyst throughout native sectors, and continued softening of retail ADV with substantial draw back dangers as a consequence of elevated FY21 ranges.
The analysis agency expects an additional softening of ADV in 2023 to RM2.26bil as ADV continues to normalise kind the retail buying and selling frenzy in FY20 and FY21.
Consequently, Kenanga lowered its FY22 earnings projection by 9%.
It additionally launched an earnings forecast of RM275mil or FY23, which is a marginal 2% decline from FY22, on softer ADV.
It maintained “market carry out” with a decrease goal worth of RM5.85 from RM7.60 beforehand.
