ASX (ASX) Update

Submitted by Jim Thesiger on 5 June, 2008 - 14:52

ASX (ASX) has a share price target of $50.02 which represents upside of over 50% and an Outperform recommendation from Australian stockmarket analysts from Macquarie Research Equities (MRE).

ASX (ASX) In The City

The current environment of uncertain market conditions and a surge in the volatility of Aussie stocks has had a number of implications for the ASX Limited (ASX. In todays note, Macquarie Research Equities (MRE) reviews the activity statistics for April and highlight a few positives to backup the positive outlook for the company.

Market conditions continue to take their toll on trade values, but this is more due to the 9 percent pull back in the market cap of the market than volumes. Trade volumes however are well up compared to April, representing a strong rebound from a relatively weak month. A couple of pleasing announcements have also been made by the ASX which should facilitate strong revenue gains. These include a growth in the thresholds for the ASX and SFE fee rebate schemes and an increasing of listing fees.

MRE maintain an outperform recommendation with ASX remaining the top pick in the diversified financials space. There is a price target of $50.02 which represents upside of over 50%. These strong buy signals are a result of ASXs standing as a diversified monopoly with the announced fee changes proving that they have the ability to set prices.