The Singapore Exchange (SGX) has reported a mixed outlook for its securities trading activities in the first half of 2025. Despite an initial peak in April, the securities daily average value (SDAV) has experienced a month-on-month decline. Analysts attribute the recent share price rally to investor confidence in Singapore as a safe haven, buoyed by optimism surrounding initial public offerings (IPOs) and anticipated benefits from the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EQDP).
SGX’s valuation has been adjusted forward to the financial year 2026, with an increased price-to-earnings ratio of 23.5 times, up from 22 times. This adjustment reflects a 6% upside potential, with a target price of $11.70 (SGD16). However, much of the market optimism may already be factored into current valuations.
The recent analysis by Shekhar Jaiswal highlights the potential for growth in trading activity, although the decline in SDAV since April suggests caution. “The share price rally likely reflects investor rotation into Singapore as a safe haven,” Jaiswal noted, emphasising the role of MAS’s EQDP in driving market sentiment.
Looking ahead, the SGX’s performance will likely hinge on the successful implementation of MAS initiatives and the broader economic environment. Whilst the current outlook remains neutral, the potential for increased trading activity and IPO success could provide a boost to the exchange’s future performance.
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