KUALA LUMPUR (Feb 6): CIMB Investment Bank Bhd said Bursa Malaysia Bhd's net profit in its financial year ended Dec 31, 2017 (FY17) was 3% above CIMB's forecast due to stronger-than-expected equity trading income. Against consensus forecast, CIMB said Bursa Malaysia's net profit was in line at 101% of Bloomberg consensus estimate. 

Yesterday, Bursa Malaysia said 4QFY17 net profit rose to RM55.27 million from RM50.17 million a year earlier. Full-year net profit climbed to RM223.04 million from RM193.62 million.

Today, CIMB wrote in a note: "Despite our positive outlook on equity income in 2018, we retain a Hold call on Bursa due to concerns over the contraction in derivative income. The upside/downside risks to our call are a pick-up/collapse in trading values in the equity and derivative markets".

CIMB said it had increased its Bursa Malaysia share target price (TP) to RM10.40, from RM10.

Affin Hwang Investment Bank Bhd wrote in a note today, reiterating its Buy rating on Bursa Malaysia with with an unchanged 12-month TP of RM12.

Affin Hwang said key catalysts for Bursa Malaysia include a "synchronised global recovery, a stronger pipeline of IPOs (initial public offering) and corporate exercises, and run-up to the upcoming general election (in Malaysia)".