Singapore Exchange - RHB Invest 2023-03-14: Expecting SGX's Share Price Weakness To Persist

• Singapore Exchange (SGX)'s implied FY23F (Jul 2022 to Jun 2023) securities daily average value (SDAV) and derivatives daily average volume (DDAV) based on operating data till February 2023 are tracking below our forecast.
• - Read this at SGinvestors.io -

SGX's securities volume grew y-o-y in February but was flat m-o-m.

• Although the STI has outperformed its regional peers, the index was down 3.1% in February amid concerns that the US Federal Reserve could keep interest rates higher for longer, thereby translating into slower economic growth.
• - Read this at SGinvestors.io -
• The year-to-date securities market turnover value and SDAV for FY23 are tracking 11% and 10% below the numbers for the same period in FY22. The implied FY23F SADV, based on data through February, is 2.6% below our estimate.
• In February, SGX saw the listing of YKGI (SGX:YK9), an established homegrown F&B operator, on its Catalist board.
• We believe SGX could continue to see weakness in its cash equity business and lower our FY23F SDAV estimates for SGX by 3%, which remain below consensus.

SGX's derivatives business continues to register growth.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2023-03-14 SGinvestors.io

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