Singapore Exchange (SGX) - Maybank Research 2024-02-01: At A Cross-roads; Low Yield & Slow Growth. 

• Singapore Exchange (SGX)’s 1HFY24 core-NPAT was behind MIBG/Street expectations. Weak market sentiment as well as a slower China impacted volumes in cash equities and derivatives.
• Nevertheless, the Group’s risk management platform proposition held up well with increased volumes in FICC as market participants hedged inflation and FX volatility.
• - Read this at SGinvestors.io -

Slower equities, better FICC

• Weak market sentiment drove SGX's cash equities average daily traded volumes to fall -11.5% y-o-y in 1HFY24. Equity derivatives saw revenues fall -6.9% y-o-y. This was partly from the migration of the Nifty contract to the NSE IX-SGX GIFT connect in India. Management expects Nifty volumes to normalise within 12-18 months as clearing members are fully onboarded.
• - Read this at SGinvestors.io -

Costs, capex seeing better management

• Read more at SGinvestors.io.

Thilan Wickramasinghe Maybank Research | https://www.maybank-ke.com.sg/ 2024-02-01 SGinvestors.io

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