This would raise its profit for the year to RM370 million from RM189.2 million the year before, said Hong Leong Investment Bank Bhd (HLIB).

The research firm said its profit forecast was based on Bursa’s fourth quarter average daily trading volume of RM4.83 billion.

Bursa’s fourth quarter results are tentatively slated for release on Feb 2.

HLIB has also raised Bursa’s financial years 2021 and 2022 by 13 and 16 per cent, respectively.

It has kept its “buy” call on Bursa with a target price of RM11.46, based on 30 times financial year 2021 price-to-earnings ratio.  Meanwhile, HLIB analyst Jeremy Goh said the second round of the Movement Control Order (MCO 2.0) would likely boost retail participation and return of foreign investors to Bursa.

“The MCO 2.0 lockdown could prompt retailers to enter the market in a more aggressive manner,” he added.

Retail participation rose to 32.5 per cent from mid-March to end-April (first MCO period) from 27.1 per cent between January and mid-March.

Goh said foreign investors had been net sellers on Bursa in six of the past seven years, with the highest outflow of RM26.4 billion during the period recorded last year.

“With foreign shareholding now at a low 20.7 per cent, the base appears much more palatable to envision their re-entry, especially so if they turn ‘risk on’ amid a vaccine-driven recovery climate.” He said market volatility could be further amplified by the recent reintroduction of regulated short selling.

  “We hold the rather consensus view that 2021 will be a vaccine-led recovery year. Despite last year’s high base, it may be possible to sustain the ADV this year,” he said, adding that ADV for the month-to-date January remained a robust RM5.11 billion.

• Bursa Malaysia Bhd