KUALA LUMPUR (April 9): Bursa Malaysia Bhd’s share price rose as much as 19 sen or 3.73% today to RM5.29, on expectation that the stock exchange operator and regulator will report this month, strong numbers for the first quarter ended March 31, 2020 (1QFY20). 

Bursa is scheduled to announced its 1QFY20 performance this April 30, according to the group's statement earlier this month.

In a note today, AllianceDBS Research Sdn Bhd said strong performance in the equity and derivatives markets could have translated to robust 1QFY20 earnings for Bursa.

"We are more optimistic on BURSA’s prospects in FY21F and FY22F on assumption of sentiment improving, after Covid-19 fallout dissipates over time, supported by government stimulus and economic recovery. Revisions to BURSA’s fee structure (e.g. listing fees, clearing fees) and a downscaling of its surveillance role would unlock its earnings potential.

"Maintain BUY with lower RM6 target price. We trimmed our FY20- 21F earnings by 4% respectively, after incorporating lower listing fee revenue, translating to a lower target price . That said, current valuations which are at a 5-year trough are still compelling for a business with a fairly stable dividend and recurring income stream, "AllianceDBS said. 

AllianceDBS said its previous Bursa share target price was at RM6.30. At 3:57pm today, Bursa shares were traded at RM5.23 for a market capitalisation of RM4.23 billion.