Singapore Exchange (SGX) - RHB Invest 2024-11-20: Raising Earnings Estimates

• Singapore Exchange (SGX)’s securities turnover and derivatives trading volume continues to surprise on the upside.
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Trading data exceeds estimates.

• October turnover and securities daily average traded value (SDAV) of S$26.9bn and S$1.22m were up 36% each y-o-y, aided by strong rises in the turnover for the top three sectors:
  • - Read this at SGinvestors.io -
  • industrials, and
  • telecommunications.
• SGX noted that retail investors net bought S$210m of cash equities in October, reversing outflows from the previous month, while institutional outflows were moderate compared with ASEAN venues – underscoring the Singapore market’s resilience (see SGX market fund flow summary). FY25 year-to-date turnover and SDAV are up 37% and 34% y-o-y.
• October derivatives volume of 31.3m contracts and derivatives daily average volume (DDAV) of 1.42m contracts were each up 52% y-o-y. The volumes for derivative products were higher across all asset classes, i.e. equities (+61% y-o-y), FX (+63% y-o-y), and commodities (+25% y-o-y). FY25 year-to-date derivatives volume and DDAV are up 26% and 23% y-o-y.
• The implied 1HFY25 SDAV and DDAV exceeded our estimates by 8% and 12%.

Earnings sensitivity.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-11-20 SGinvestors.io

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