ASX Limited Trading Update

Submitted by Craig Strzelecki on 4 May, 2007 - 20:52

ASX Limited has a retained Outperform recommendation and a $50.32 share price target from stockmarket analyst Macquarie Research Equities. April Share Trading Trading has set more records: Trading volumes have also been on the up, with an average of 240,161 transactions executed per day, up 48% on this time last year and a new record. Continued strength in volumes in the equity market may mean a great time for buying exposure into the Australian Stock Exchange (ASX). Robust month for equities: At 240,161, the number of daily transactions in April was a record and up 8.9% on the previous high, set in February 2007. Noting that April was a shortened month (with fewer trading days due to the Easter holiday period), the total value traded on ASX markets during April was $109.4bn, which equates to an average value of $6.1bn per day, up 31% relative to the pcp. The analyst believes that there is upside risk to their FY08 revenue forecasts and have identified several factors that will continue to support equity trading growth
(which accounts for 31% of ASX revenue). These include mandated superannuation contributions, an expected strong surge in voluntary contributions in the coming quarter (as investors take advantage of transitionary arrangements), reinvestment of dividend and takeover money, and investment of Future Fund FUM into the domestic equity market. The analysts have retained their Outperform recommendation for ASX Limited: reflecting their upside relative to MRE’s $50.32 price target supported by a 3.7% fully-franked dividend yield. Momentum in trading volumes – coupled with likely further upside to SFE synergy benefits – should provide a backdrop supporting further near term earnings upgrades.

ASX Limited is listed on the Australian Stock Exchange (ASX) under stock code ASX. You can view their investor website here. ASX was listed on the ASX on 14 October, 1998. Maurice Newman is the chairman of ASX while Robert George Elstone is the managing director. The company is the economic entity provides stock exchange and ancillary services in Australia. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade ASX. Check your charts and good luck with your share trading!