KUALA LUMPUR (April 23): Analysts expect Bursa Malaysia Bhd's earnings for the first quarter ended March 31, 2018 (1QFY18) to come within expectations when the stock market operator releases its results this Wednesday.

RHB Research Institute Sdn Bhd has maintained its "buy" rating on Bursa Malaysia at RM7.58 and raised its target price by 5% to RM8.50 from RM8.13 previously as it believes that the upcoming 14th General Election (GE14) could add to trading activity in the short term.

In a note today, RHB said securities average daily value (SADV) in the first quarter of 2018 was RM2.7 billion, up 14% quarter-on-quarter and 16% year-on-year (y-o-y). This was in line with its 2018 forecast of RM2.7 billion.

"We expect SADV to rise further in 2019 to RM2.8 billion — one contributing factor is the upcoming establishment of a stock market trading link between Bursa Malaysia and SGX, which should help improve trading liquidity further," added RHB.

Meanwhile, MIDF Amanah Investment Bank Bhd Research expects Bursa Malaysia's 1QFY18 earnings to come within its estimates, adding that it will be driven by stronger average daily trade value (ADTV) traded for securities market on-market trades.

"We expect profits to come in between RM61 million and RM63 million, with growth of circa +10.5% y-o-y from the same period last year," it said.

However, MIDF maintains its "neutral" stance on Bursa Malaysia with an unchanged target price of RM7.50.

Both RHB and MIDF have released notes today on Bursa Malaysia in light of its 1QFY18 results, which will be released this Wednesday.