Singapore Exchange - CGS-CIMB Research 2022-03-21: Fuelled By Volatility

Singapore Exchange - Fuelled By Volatility

  • We expect SGX's Share Price to be supported by elevated financial market volatility as the recovery of treasury income gets priced in. We project an expedited recovery in SGX (SGX:S68)'s treasury income towards ~16% of revenue in FY23-24F (FY21: ~10%) as Fed signals 6 more hikes in CY22F.
  • SGX reported securities daily average value (SDAV) rose 21% y-o-y to S$1.6bn in Feb 22, rebounding strongly from the S$1.2bn average in 1H22. SGX’s China A50 trading volumes are steady.
  • Reiterate ADD call on SGX. Continued geopolitical uncertainty should support demand for hedging solutions. SGX's valuations are inexpensive at 23x CY22F P/E.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

Andrea CHOONG CGS-CIMB Research | 2022-03-21
SGX Stock Analyst Report ADD MAINTAIN ADD 10.400 SAME 10.400

Previous report by CGS-CIMB:
2022-02-05 Singapore Exchange - Steadying The Ship

Target prices by 2 other brokers at SGX Target Prices.
Listing of broker reports at SGX Analyst Report.

Relevant links:
SGX Share Price History,
SGX Announcements,
SGX Dividends & Corp Actions,
SGX News Articles


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