Policy tailwinds are improving the medium-term outlook, which should support liquidity, issuance, and turnover. Our estimates stay above Street’s and imply above-guidance DPS but modest yields.
With near-term securities daily average traded value (SDAV) tracking firm and market pricing in much of the uplift, valuation stays the key constraint. We prefer to add on pull-backs or clearer evidence of a sustained SDAV improvement.
New regulatory initiatives are a medium-term positive.
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The Government has also convened a Growth Capital Workgroup to strengthen Singapore as a growth-capital hub, covering measures across deal origination, fundraising and capital mobilisation, and capital recycling, with review completion by end 2027 and interim updates on its recommendations along the way.
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Our forecasts are ahead of consensus and imply a DPS above SGX guidance.
Our FY26F-28F earnings are 1.5%, 5.3%, and 6.7% above consensus. We assume SDAV sustains an uptrend to ~S$1.84bn by FY28 from S$1.3bn in FY25, alongside 10.4% blended derivatives daily average volume (DDAV) CAGR over FY25–FY28F.
We estimate SGX's dividends rising to 59.8 cents by FY28, above SGX’s guided 52.5 cents during the same period. Despite our more constructive dividend outlook, the yield remains modest.
Key risks
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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