“SGX’s velocity has a positive correlation with volatility,” Credit Suisse analysts wrote in a note on Tuesday, raising the shares to neutral from underperform. The stock has held up better during the current rout – it’s the third-best performer in the Straits Times Index this year.
SINGAPORE (Mar 13): Singapore Exchange is benefiting from the frenzied buying and selling of assets that the coronavirus outbreak has triggered.
The bourse, which allows the exchange of products from Singaporean shares to FTSE China A50 Index and currency futures, saw its securities market’s trading surge 44% to $27.5 billion in February from the same period a year ago. Derivatives volume hit a record 1.24 million contracts, it said on March 9.
That’s led brokerages including Credit Suisse Group AG, Citigroup Inc. and CGS-CIMB Securities International Pte. to upgrade Singapore Exchange shares this month, touting the Southeast Asian venue as a key beneficiary of market volatility.
