Kenanga Research raised its target price for stock exchange operator Bursa Malaysia Bhd to 7.20 ringgit from 6.95 ringgit, saying it expects the equity market to improve as the uncertainty over the country’s upcoming elections lessens.
“We believe that the uncertainties over the general election should gradually ebb,” said Kenanga in a report on Friday. The brokerage maintained a “market perform” call on Bursa Malaysia shares.
“We believe the market could be in the midst of pricing in an improved equity market scenario,” it added.
Average trading volume on the stock exchange has declined 48.5 percent in the first quarter ended March. 31, Kenanga said. Moreover, revenue earned from new listings declined 8 percent from last year.
Shares of Bursa Malaysia were up 0.28 percent at 7.2 ringgit at 0910am (0110GMT) while the benchmark index gained 0.17 percent.
0911 (0111 GMT) (Reporting by Al-Zaquan Amer Hamzah; Editing by Anupama Dwivedi)