The implied 2HFY25F securities turnover and derivatives trading volume based on the Jan 2025 market data are significantly below our estimates. The elevated near-term market volatility will imply sequentially higher derivatives volumes but we expect the securities daily average traded value (SDAV) to remain flat h-o-h in 2HFY25.
- Read this at SGinvestors.io -
We expect growth to moderate from FY26 and note that our estimates are in line with consensus.
Jan 2025 data came in softer than expected.
SGX reported Jan 2025 securities turnover and SDAV of S$20.8bn (+1% y-o-y, +4% m-o-m) and S$1m (+11% y-o-y, +9% m-o-m), aided by growth in trading activity across all client segments led by REITs and index stocks. It noted that increased risk-management activity over the Lunar New Year holiday, heightened volatility amid a technology selloff, and global policymaking uncertainty supported higher trading activity.
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Although this is just one month of data for 2HFY25F, we assess that the implied securities turnover and derivatives volume came in 19% and 10% below our estimates.
Growth is largely in line with guidance.
Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
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