Equities – Cash also saw strong growth, and we expect this momentum to accelerate in 2H as market reforms start to be implemented. This should drive higher volumes and a better fee mix.
Stronger 2H cash-equities from reform momentum
Equities-Cash revenues increased +16% y-o-y. This was led by ADV increasing +19.5% y-o-y to S$1.51bn. In our view, this growth is largely independent of equity market reforms as related implementation has yet to kick-off i.e. EQDP liquidity is only just starting to be deployed. Together with continued safe-haven flows to Singapore, market velocity should see upside risks.
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We note clearing fees rising +1.8% y-o-y highlighting a shift in mix towards full-fee paying retail and institutional clients. Combined, these developments should broaden and deepen SGX’s Equity-Cash proposition. We raise FY27-28E Equities revenues by 2% each.
Multi-asset platform synergies delivering
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Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
