Financial Services Roundup: Market Talk is a regular report that provides updates on various financial services topics. In the latest report, it is noted that the Australian Securities Exchange (ASX) had a better trading month in December, but overall cash market volumes were down for the half. Analysts at Morgans have lowered their EPS estimates for ASX and cut the target price.
Morgans analyst Steven Sassine notes that cash markets activity for the ASX was better in December, with total trades up 7% compared to the previous corresponding period. However, for the half, overall cash market volumes were down about 8.5% on a year-on-year basis. This mixed outcome has led Morgans to lower its EPS estimates for ASX for the next couple of years.
To reflect the subdued cash markets activity in the past half, Morgans has adjusted its target price for ASX, lowering it to A$60.20. Currently, ASX is trading at A$62.71, up 0.2%.
This report provides a snapshot of the financial services industry, specifically focusing on the performance of ASX. The decline in cash market volumes for the half is a significant factor that has impacted the earnings outlook for ASX, resulting in the downward revision of EPS estimates by Morgans. This information is useful for investors and traders who are interested in following the financial services sector.