SINGAPORE (July 22): RHB is keeping its “buy” call on Singapore Exchange (SGX) with a target price of $9.04 after fine-tuning its FY17-18 net profit forecasts.

In a Thursday report, analyst Leng Seng Choon says RHB has lowered its net FY16 net profit forecast for SGX by 3% to $352 million to factor in 4Q’s weaker-than-expected securities average daily value (SADV), which was 15% lower q-o-q at $1 billion. Its full year’s $1.06 billion was only marginally lower than FY15’s $1.08 billion.

Although RBH believes SGX’s 4QFY16 earnings will be “unexciting”, the research house remains bullish on the stock on the back of a potential pickup in SADV in 2H16.

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