Macquarie research rates ASX to underperform noting that volumes on the exchange are lagging the current equity market rally

Macquarie research rates ASX to underperform noting that volumes on the exchange are lagging the current equity market rally. Cash Equities volumes fell to just $3.7bn, 10.6% below the average of August and September 2013 ($4.2bn) as ASX lost ~1ppt market share to Chi-X. October interest rate futures volumes grew by 20% YoY and +10% and +17% above the July and August 2013 non-roll months. ASX is trading on 18x consensus 1yr forward PER, a 26% premium to the Australian market and at the top of its valuation range - underperform.