The ASX has been a poor performer over the last 6-months with the stock sliding ~28% in a rising market. CBOE Global Markets, the 3rd largest exchange operator in the US, has now bought Chi-X the local competitor to the ASX in a move that should address regulators concerns around the incumbents monopoly. This inevitable competition is clearly great news for everyone except the ASX but we feel the forthcoming disruption is becoming built into the ASX’s share price and if we see ongoing weakness back towards $63-$65 support MM believe this will become an excellent defensive play with an attractive ~5% fully franked yield.
MM likes The ASX (ASX) ~10% lower.
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