OSK maintains 'fully valued' call on Bursa (1818)

KUALA LUMPUR: HwangDBS Vickers Research Sdn Bhd is maintaining a "fully valued" call on Bursa Malaysia after posting within-expectation financial results in the second quarter.

It said the lower profits recorded by Bursa Malaysia in the quarter was expected due to lower marketing and development expenses, despite relatively stable operating expenses.

"Revenue from equities fell 16 per cent quarter-on-quarter due to softer trading activity in the security market.

"Bursa Malaysia's second quarter net profit of RM37.9 million took its first half earnings to RM78.7 million or 55 per cent of our financial year 2012's estimate," OSK said in a research note today.

However, the research firm is keeping its assumption for Bursa Malaysia this year, based on the average trading volume on the local bourse of 1.11 billion and daily turnover value of RM1.47 billion.

"The strong trading momentum in the first quarter this year has fizzled out quickly in the second quarter and the current market sentiment remains volatile.

"Our key concern remains the sustainability of trading volumes and values," it added. -- BERNAMA

aiyee ... diff rating

Credit Suisse estimated rm8
cimb upgraded rm7.28
nw osk said fully value