[ET Net News Agency, 10 March 2021] Goldman Sachs lifted its target price for HKEX
(00388) to HK$400 from HK$415 and maintained its "sell" rating.
The research house said SB (South-Bound) Connect flow has turned. During the last ten
trading sessions, SB has net sold HK$46bn, after buying HK$469bn during the first 35
trading days of the year.
Goldman said SB Connect flow has been: (1) an early indicator of volumes (and their
peaks); (2) one of the drivers for rising turnover and market cap at the exchange
recently, and (3) a large buyer of the HKEX stock.
Goldman lowered its 2022-23 EPS forecasts by 2% (2021 unchanged) to account for lower
cash market volumes in the future, looking at prior incidences of the market index,
volume, and SB peaks. (KL)