Hong Kong Stock Exchange Q3 trading turnover down 24% on quarter, target price cut to HK$375 – Credit Suisse

 

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The Hong Kong Stock Exchange’s average daily trading turnover so far in third quarter of the year amounted to merely HK$99 billion, down 24% from that in the second quarter of the year, said Credit Suisse in a note.

The broker lowers the forecast of the exchange’s average daily turnover in 2022 from HK$129 billion to HK$124 billion, slightly below the market consensus, implying an average daily turnover of $118 billion for the rest of this year.

It also lowered the forecast of its average daily turnover in 2023 and 2024 to HK$141 billion and HK$162 billion, respectively, from HK$147 billion and HK$166 billion.

The bank cut the forecast of the bourse’s earnings per share in 2022-24 by 3.7%/1.4%/ 2.4%. The target price for the stock was lowered from HK$396 to HK$375, with its rating kept at Outperform.