Singapore Exchange - RHB Invest 2024-06-11: Strong Operating Data; Rolling Forward Valuations

• We raise FY24F-26F earnings forecast for SGX by 1.4% each and roll forward our valuation basis to FY25. While we expect improvements in FY25–26 SDAV and earnings, our FY24–26 profit estimate for SGX remains below consensus’.
• - Read this at SGinvestors.io -
• The derivatives business remains strong, with FY24-to-date derivatives daily average volume (DDAV) up 8% y-o-y.

SDAV data remains strong.

• We had noted in our last report that SDAV could remain elevated in the near term, given the rebalancing of indices, which recently saw the announcement of the removal of five Singapore stocks from the MSCI Index. In addition, SGX noted that SDAV surged amid robust activity around corporate earnings.
• - Read this at SGinvestors.io -
• Accordingly, we have increased 2HFY24 SDAV forecast by 3.4%. We estimate that SGX's SDAV will increase by 5% each year in FY25–26.

Derivative business remains strong.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-06-11 SGinvestors.io

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