Citi flags leadership and cost risks at Australian bourse operator ASX

ASX

08/04/2026 20:18

** Citi analysts note Australia's ASX  ASX.AX recorded strong trading volumes in March, but flag risks related to uncertainty regarding FY27/28 costs

** Despite "stronger-than-expected" top-line growth and an "undemanding" valuation, Citi retains its "Neutral" rating on co due to uncertainty over the extent and duration of elevated costs

** Adds uncertainty is related to the impending CEO appointment and entailing strategic changes, regulatory agreements, the scope of co's reset program and potential changes to co's capex plans

** Still notes ASX's cash market average daily value of trades for March rose 28% yoy due to elevated market volatility and higher trading velocity; highlights record futures volumes in March driven by changing interest rate outlook and volatility

** Bourse operator's shares rose 2.1% on Wednesday after it released its March activity report

** YTD, shares up 4.7% after falling 21% in 2025

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))