SGX

SGX: CIMB maintains Neutral with $7.26 TP. House note that 1Q13’s securities value traded (S$1.44bn/day) was only 21% higher qoq, in a qtr buoyed by M&A and QE3 hype. Yoy, volume was still -7%. Derivatives’ vol, however, was 5-10% lower qoq. The stock’s 23x CY13 valuation is close to mean (25x P/E) and provides little upside. SGX’s share price tracked the market ytd and should not deviate much. Neutral rating is unchanged in the absence of catalysts. Even as its 1Q13 vol picked up on M&A hype, the profitability needle has not moved much. Add that Exchanges worldwide face a ‘volume’ glass ceiling today, as macro uncertainty reigns. HouseDDM target price is unchanged.