After the release of ASX’s May statistics, Morgans sees trading as broadly soft, with capital raisings/listings the only real bright spot. The rating falls to Reduce from Hold, due to the recent share price rise. The target price increases to $65.87 from $65.59.
The broker sees ASX’s activity growth trends in the second half as fairly lacklustre overall, ex capital raising activity. In cash equities, monthly average growth rates for volume traded and value traded have been down -20% and -14% respectively on the pcp.
Sector: Diversified Financials.
Target price is $65.87.Current Price is $75.60. Difference: ($9.73) – (brackets indicate current price is over target). If ASX meets the Morgans target it will return approximately -15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
