SGX

SGX: CIMB maintains U/p with $7.31 TP. House expect 4Q13 earnings to beat Street estimates on account of better-than-expected derivatives trading volume. Going forward, poor market sentiment could weigh down earnings, although derivatives should continue to provide some support. House raise FY13 EPS by 8% to account for higher derivatives volume but leave FY14-15 EPS unchanged. DDM-based target price (discount rate 9.5%) rises slightly after our EPS adjustments. Believe SGX’s premium P/E is unjustified given headwinds in global markets. Maintain Underperform with de-rating catalysts from the latter.