- Singapore Exchange (SGX)'s FY24 core-NPAT was in-line with Street and ahead of MIBG. Derivatives drove growth, particularly commodities and currencies as clients managed risks amidst major volatility.
Strong franchise, but low pay out.
- - Read this at SGinvestors.io -
- In the meantime, dividends continue to disappoint, especially given capacity to pay more.
Derivatives continues to deliver
- 2HFY24 FICC saw a 17.6% y-o-y revenue growth. In FY24 this segment saw volumes expand +42% y-o-y pointing to the strength of the platform for risk management amidst global volatility. We think with increased China uncertainty, US elections and rate cut variability, this segment should continue to deliver.
- - Read this at SGinvestors.io -
- Nevertheless, SGX's equity derivatives revenues fell -8.1% y-o-y in 2HFY24. Competition, especially for contracts such as the Nikkei 225 seem to be rising (FY24 volumes fell -22.5% y-o-y). This needs to be watched.
- We forecast FICC to grow +14% y-o-y in FY25E.
Cash equities rejuvenation too early to call
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Thilan Wickramasinghe Maybank Research | https://www.maybank-ke.com.sg/ 2024-08-08
Previous report by Maybank:
2024-02-01 Singapore Exchange (SGX) - At A Cross-roads; Low Yield & Slow Growth. .
Price targets by 3 other brokers at SGX Target Prices.
Listing of research reports at SGX Analyst Reports.
Relevant links:
SGX Share Price History,
SGX Announcements,
SGX Dividends & Corporate Actions,
SGX News Articles
