SGX

SGX: may get lift on news that Lukoil, Russia’s second largest oil firm is seeking to list some existing shares in either Singapore or Hong Kong, although company has no plans for issue of new shares. Lukoil is traded on the London Stock Exchange, with market cap of US$50bn, and would greatly improve the trading depth of the market where it chooses to list. In comparison, SingTel, Spore’s largest listed counter, has a market cap of US$38bn...

Given that Singapore is an international oil trading hub, and is the listing base of leading commodities companies such as Wilmar, Noble, Olam, SGX stands as good a chance (if not better), compared to SEHK, in wooing Lukoil over. Stock has gained >20% over the past one month, on expectations that ADR trading, to commence 22 Oct, would significantly boost trading revenue. UBS upgrades target to $10.50 from $9.50.