Singapore Exchange (SGX) has maintained a neutral outlook with a target price of S$15.90, reflecting a 3% upside, according to a recent update. The June 2025 securities turnover was incorporated into the estimates, whilst derivatives volumes for the second half of the financial year 2025 were reported to be 1.2% below expectations. Despite the benefits from increased market volatility and improved securities turnover, much of the optimism appears to be already priced into the stock’s year-to-date gains.
The Monetary Authority of Singapore (MAS) has been instrumental in supporting equity market initiatives, which have contributed to the improvement in securities turnover. However, the current earnings forecasts remain unchanged. The report does, however, indicate an increase in dividend expectations, suggesting a positive outlook for shareholders.
Analyst Shekhar Jaiswal commented on the situation, noting that whilst there are benefits from the current market conditions, the stock’s performance has already accounted for much of this optimism. The report highlights the importance of market volatility and MAS-led initiatives in driving recent improvements.
Looking ahead, the focus remains on how SGX will navigate the challenges posed by the derivatives market and whether further market initiatives will bolster its performance. The unchanged earnings forecasts suggest stability, but the raised dividend expectations indicate potential for shareholder returns. As the market continues to evolve, SGX’s ability to adapt and leverage market conditions will be crucial for its future performance.
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