The Singapore Exchange (SGX) has kicked off its new fiscal year with robust performance figures, as revealed in a recent company update. July’s data indicates that securities and derivatives volumes have surpassed the estimates for the first half of the fiscal year ending June 2026, according to RHB’s research note.
Notably, small and mid-cap liquidity surged by 94% month-on-month, fuelled by retail flows and six consecutive months of institutional net buys.
This momentum is expected to continue, although the stock’s forward valuation appears stretched unless the July performance is sustained and annualised. Analyst Shekhar Jaiswal noted that their earnings forecasts for fiscal years 2026 to 2028 are 5-6% above consensus, with dividend estimates exceeding guidance. However, the implied yield of approximately 3% for fiscal year 2026 remains below the market average.
The SGX’s share price has risen by 27% year-to-date, reflecting the optimism already priced into the market. Despite the strong start, the company’s forward valuation suggests caution unless the current momentum is maintained. The update also highlighted that the dividend yield, whilst exceeding guidance, is still trailing behind the broader market yield.
Looking ahead, the SGX’s performance will be closely monitored to see if it can sustain the strong start to the fiscal year. The company’s ability to maintain this momentum could have significant implications for its valuation and investor confidence.
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