Market Q4 Earnings Expected to Weaken Amid Volatility

KUALA LUMPUR (Jan 14) – Bursa Malaysia’s net profit for the fourth quarter of FY2024 (4QFY24) is projected to decline quarter-on-quarter (QoQ), weighed down by a softer average daily trading value (DATV) in the securities market. Trading velocity for the quarter dropped by 12 percentage points to 31%.

Earnings decline

Despite healthy domestic liquidity and a robust initial public offering (IPO) pipeline, the market continues to face headwinds from subdued foreign fund inflows. Persistent high interest rates in the United States have bolstered the US dollar, while uncertainties surrounding U.S. trade and fiscal policies add to global volatility.

Bursa trading ratio

Analysts maintain a “Hold” rating on Bursa Malaysia, with a target price (TP) of RM9.10 per share.

The valuation is based on a forward price-to-earnings (P/E) ratio of 24 times for FY2025, in line with the stock’s 10-year historical average. Bursa Malaysia is currently trading at a forward P/E of 23 times, comparable to the regional exchange average of 24 times.

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Staff Writer

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