Are higher trading volumes on SGX a sign of things to come?

SINGAPORE (Jan 16): The Singapore Exchange’s securities average trading volumes for the 2Q to Dec rose 9% on quarter to $1.06 billion which RHB attributed to the pickup in activity after the US presidential elections in November.

As such, the brokerage is maintaining its “buy” recommendation for the stock with a target price of $9.10. RHB’s analyst Leng Seng Choon is also maintaining his forecast of $1.27 billion in SGX trading volumes for the full year ending June, noting that trading volumes continued to grow in the first few trading days of 2017.

More importantly, Leng notes that SGX’s derivatives’ trading volumes grew by a less inspiring 3% over the three month period to $41.37 million. Nearly 41% of that increase came from the China A50 Index Futures.

---

Related Stories

• Can SGX afford to wait up to a year for reforms?
• Lim & Tan Securities maintains ‘buy’ on Grand Banks Yachts; almost doubles TP to $1.05
• Brokers’ Digest: AEM, Prime US REIT, Hyphens Pharma, Seatrium, Valuetronics, DFI Retail Group, CDG, Centurion, Sembcorp

---