Singapore Exchange - OCBC Investment 2024-11-20: Strong Derivatives Momentum To Sustain Earnings Growth

• Singapore Exchange (SGX) recently reported its monthly market statistics for Oct 2024. Refer to SGX's announcement dated 08 Nov 2024.

Derivatives DAV jumped 48% y-o-y in Oct to a record highof 1.58m contracts

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• Performance for its equity index futures was in turn driven by record China A50 index futures trading activity during the Golden Week holiday.
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• As for commodities, higher trading activity was boosted by rubber and iron ore derivatives.

Securities DAV traded grew 36% y-o-y to S$1.22b in Oct

• Besides strong growth from SGX’s derivatives business, its securities business also delivered robust growth, with market turnover value increasing by 36% y-o-y to S$26.9b in Oct 2024 (4MFY25 +37% y-o-y to S$112.6b), while the securities daily average value (SDAV) was also up 36% y-o-y S$1.22b.
• Retail investors recorded S$210m of net inflows for cash equities, which was a reversal from outflows in Sep 2024, while institutional outflows were moderate as compared to ASEAN venues, according to SGX. See SGX Fund Flow Summary.
• There were also new product launches by SGX, such as the listing of new daily leverage certificates (DLC) linked to the US Magnificent Seven stocks in Oct 2024, with structured certificates targeted for the coming months that will further expand its suite of structured product offerings.

Raise FY25 core earnings per share (EPS) forecast by 3.3%; bump up fair value to S$12.21

• Read more at SGinvestors.io.

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-11-20 SGinvestors.io

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