Unfortunately, the SGX — which investors perceived to be at the losing end of the new contract, given that the FTSE China A50 futures is a significant contributor to revenue — has also languished. The SGX’s share price broke below support at the $9.98 to $10 level on Sept 30 and has spent the past five to six weeks moving to $9.47 before rebounding. Based on the chart pattern, the declining 50-day moving average is acting as a resistance line.
Finally, the Singapore Exchange (SGX) will get an IPO in the form of Daiwa House Logistics Trust. The IPO’s market cap is around $540 million, which is small for an S-REIT. However, with the regulatory framework ready for potential listings of special purpose acquisition companies (SPACs), we could see more IPOs, which could revive the fortunes of SGX which has suffered from a dearth of IPOs.
For the time being though, the chart of the SGX looks pretty dismal at first glance. Its share price has been under pressure since August,when the Hong Kong Exchange and Clearing (HKEX) announced it would be launching a futures contract based on the MSCI China A 50 Connect Index. HKEX’s share price, although up 26% y-o-y, is up just 4% this year. After a temporary rebound in September, the HKEX continued to languish.
