SGX

SGX: Counter had a steady incline in the am session today, up 1.3% to $7.67. Maybank KE has a report out today on a preview of Group's results due 16 Apr after-market, noting that 3QFY13 results is expected to be very strong, and will be of major significance- being SGX's most profitable quarter since the GFC in '08. Security trading activities have picked up significantly, with the quarter Jan-March 2013 registering an average SDAV (securities daily average volume) of $1.7b. This momentum bodes well for the rest of the year, and will represent higher revenue in its more traditional bread-and-butter business. SGX's derivative segment are undergoing structural growth, decoupled from the more volatile volumes in its securities trading business. Growth momentum has also surpassed expectations, with 3QFY13 DAV (derivatives average volume) up more than 50% y/y. Overnight open interest, which grew 31% q/q in 2QFY13, will show another 29% exponential quarterly leap. Collaborations with our neighbouring exchanges will likely be the key discussion point, with the recent collaborations with Korea Exchange and Philippines Stock Exchange. Maybank KE reiterates BUY, with TP of $9.00- pegged to 29x forward PE (1 std. dev. above historical mean).