Australian exchange operator rises as Citi boosts earnings outlook

ASX

08/10/2026 07:01

Oct 8 (Reuters) - Shares of the Australian bourse operator ASX Ltd ASX.AX surged to a near two-month high on Thursday after Citi raised annual earnings outlook, citing expectations of continued strong activity through the first half of the year, following a robust first quarter.
Here are the details:
The exchange operator posted 16% growth in September in the average daily number of trades for cash markets, compared with last year.
The daily futures volume climbed 44% in the month to near-record highs, likely reflecting structural and cyclical factors, including shifts in the rates outlook and bond market, Citi analysts said.
Strong activity is likely to persist through at least the first half, Citi added, raising annual earnings per share outlook for ASX by 2%. 
On the downside, corporate market activity remained muted in September, but a boost is expected in the near-term with Glencore's GLEN.L secondary listing and Firmus' IPO set for October, Citi said.
Both Citi and UBS raised ASX's price target to A$61.00 and A$65.50 from A$60.10 and A$64.20, respectively.
Meanwhile, Goldman Sachs remains cautious about the new Chief Executive Anthony Attia's strategy and potential financial settings of the firm going ahead. 
Goldman Sachs is also wary of the bourse operator's execution risks regarding CHESS replacement and technology modernisation program, after the central bank said in September that the firm's clearing and settlement facilities failed to meet the central bank's expectations.
ASX shares ended 3.8% higher, clocking a near two-month high, and were among the top performers on the benchmark S&P/ASX 200.

 (Reporting by Keshav Singh Chundawat in Bengaluru; Editing by Nivedita Bhattacharjee)
 ((Keshav.singhchundawat@thomsonreuters.com))