Besides providing shelter from the bigger swings suffered by other markets, Tay sees another reason to like SGX — the growing momentum in trading volume. “We believe the twin catalysts of volatility from global macroeconomic uncertainty and incremental liquidity injection as a result of the government’s equity market review could contribute to earnings upside from FY2026,” the analyst writes in his July 8 report.
Investors trading local stocks appear to be unfazed by the latest tariff twists and turns from the US. Unlike the plunge following the April 2 Liberation Day announcement, the Straits Times Index (STI) closed slightly higher on July 8, remaining positive for the day and standing firm amid the wider volatility other markets are prone to. The index gained even more the following day to close at 4,057.82 points. In addition, trading turnover, as expected, enjoyed steady growth, as indicated by latest data from the Singapore Exchange (SGX) for June, capping the last month of its financial year ended June 30.
In this context, SGX, trading on itself, is viewed as a “defensive pick” and an attribute that justifies an upgrade to “add” by CGS International analyst Tay Wee Kuang, along with a higher target price of $18.30, up from $13.20 previously.
