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SGX to ride strengthening global growth

Samantha Chiew Published on Tue, Jun 20, 2017 / 10:35 AM GMT+8

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SINGAPORE (June 20): RHB is keeping its “buy” recommendation on Singapore Exchange (SGX) with a target price of $9.00, supported by the broker’s DCF-derived fair value of $8.79 and a 4.1% dividend yield.

In a Tuesday report, analyst Leng Seng Choon believes strengthening global growth will be positive for Singapore’s economic growth, and this would drive FY18F securities average daily volume (SADV) to $1.35 billion despite a “relatively unexciting” QTD SADV in 4QFY17 of $1.15 billion.

Leng is also forecasting FY18 net profit growth of 12% from both the exchange’s securities and derivatives businesses.