Citigroup raises profit forecast; Australian exchange operator's stock price rises
路透社2026/10/08 06:11On Thursday, shares of Australian Securities Exchange operator ASX Ltd (ASX.AX) surged to nearly a two-month high after Citi raised its annual profit outlook for the company, citing a strong first-quarter performance and predicting robust market activity to continue into the first half of the year. Details are as follows: The exchange operator's average daily trading volume in the spot market rose 16% year-on-year in September. Citi analysts noted that daily futures trading volumes climbed 44% during the month, approaching historical highs, possibly reflecting structural and cyclical factors, including interest rate prospects and changes in the bond market. Citi added that strong market activity is expected to last at least through the first half, and consequently raised ASX's annual earnings-per-share forecast by 2%. Citi pointed out, however, that corporate market activity remained subdued in September. Short-term market activity is expected to be boosted with Glencore's GLEN.L company planning a secondary listing in October and Firmus company planning an initial public offering (IPO) in October. Both Citi and UBS raised their target price for ASX from AU$60.10 and AU$64.20 to AU$61.00 and AU$65.50, respectively. Meanwhile, Goldman Sachs remains cautious about the strategy of the new CEO, Anthony Attia, and the company's potential future financial situation. Goldman Sachs is also alert to execution risks in the exchange operator's CHESS system replacement and technology modernization plans. This comes after the central bank stated in September that the company's clearing and settlement facilities had not met the bank's expectations. ASX shares closed up 3.8%, reaching their highest level in nearly two months and ranking among the top performers on the S&P/ASX 200 index.
Reuters, October 8 - On Thursday, shares of Australian Securities Exchange operator ASX Ltd (ASX.AX) surged to a near two-month high after Citigroup raised its annual profit forecast for the company, saying that strong first-quarter performance is expected to continue driving robust market activity through the first half of this year.
Details are as follows:
The exchange operator saw a 16% year-on-year increase in average daily trading volume in its spot market in September.
Citi analysts stated that daily futures trading volume in the month climbed 44%, approaching historical highs, which may reflect structural and cyclical factors, including interest rate outlook and changes in the bond market.
Citi added that strong market activity is expected to persist at least through the first half of the year, and as a result, ASX's annual earnings per share forecast was raised by 2%.
Citi noted that on the downside, corporate market activity remained subdued in September, but with Glencore's GLEN.L planning a secondary listing in October, as well as Firmus's planned initial public offering (IPO) in October, a near-term boost to market activity is anticipated.
Both Citi and UBS raised their target price for ASX from A$60.10 and A$64.20 respectively to A$61.00 and A$65.50.
Meanwhile, Goldman Sachs maintains a cautious stance towards new CEO Anthony Attia's (link) strategy and the company’s potential future financial situation.
Goldman also remains watchful of execution risks in the exchange operator’s CHESS system replacement and technology modernization plans, after the central bank stated in September that the company's clearing and settlement facilities had not met expectations (link).
ASX shares closed up 3.8%, hitting a near two-month high and ranking among the best performers on the S&P/ASX 200 Index.
(To assist non-native English speakers, Reuters provides automated translations of its reporting into several other languages. Since automated translation may contain errors or lack needed context, Reuters does not guarantee the accuracy of translated texts; they are provided solely for readers’ convenience. Reuters accepts no liability for any damage or loss caused by using the automated translation function.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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