Bursa Malaysia Bhd(Feb 6, RM8.75)Maintain hold call with an unchanged fair value of RM8.70: Bursa Malaysia Bhd reported a fourth quarter financial year 2016 (4QFY16) net profit of RM50 million, which was higher than our expectation of RM43 million. For FY16, the DATV was lower at RM1.81 billion for the securities market and in line with our expectations. In 4QFY16, market velocity dropped to 25% from 26% in 3QFY16. Bursa Suq Al-Sila trading revenue declined marginally by 0.4% y-o-y while revenue for market data revenue rose by 1.6% y-o-y due to increased subscribers for derivatives market data. In 2H17, the above negative events would have surpassed, and with greater clarity on US President Donald Trump’s policies, we expect an improvement in securities market trading activity.

Source: The Edge Markets February 07, 2017 02:48 UTC