KUALA LUMPUR, May 4 — MIDF Research has upgraded its call on Bursa Malaysia Bhd to "trading buy” from "neutral” due to the counter’s bullish outlook.

In a research note today, MIDF Resarch has also revised its target price on Bursa Malaysia Bhd upwards to RM6.45 from RM5.90 previously.

"The uncertainties surrounding the global economy may lead to higher volatility in the market. As evident by the first quarter 2020 ended March 31, 2020 (Q1 FY2020), higher volatility could mean higher revenue for Bursa Malaysia and better earnings,” it said.

For Q1 FY2020, Bursa Malaysia recorded a strong profit after tax and minority interest, rising by 38.2 per cent year-on-year, surpassing MIDF Research’s expectations of 31.3 per cent at its full-year estimate.

"The variance was due to our underestimation of its revenue growth.

"We are not discounting that there could be more volatility to the market as the full impact of the Covid-19 pandemic to the economy and corporate earnings becomes more apparent. This should benefit Bursa Malaysia, especially its trading revenue,” it added. — Bernama