- We raise SGX's target price to S$16.09. Maintain BUY.
- In 2025, SGX’s average daily cash equities trading value has materially increased. This is likely structural driven by safe haven inflows to Singapore, domestic pump priming, falling rates and accelerating corporate capital returns.
- - Read this at SGinvestors.io -
Equity ADV at a structural turning point?
- CY25 year-to-date cash equities average daily traded value (ADV) is 20% higher than CY24. Indeed, April’s S$1.9bn ADV was last seen on a sustained basis prior to May 2009. In our view, this is structural. US policy uncertainty can continue till at least 2028. This is driving investors towards safe haven markets with policy certainty such as Singapore for diversification.
- - Read this at SGinvestors.io -
- A construction boom is underway, which is driving upgrades to listed construction players as well as spill-over beneficiaries. Plus domestic interest rates are falling sharply (June 6-month T-bills at 2.0%). These drivers favour more flows to equities.
Policy boost and volatility boost
- Read more at SGinvestors.io.
