SGX

SGX: Goldman Sachs reiterated Neutral on SGX with 12-month TP adjusted upwards to $7.90 based on 3-stage DDM. Continued declines in cash equity ADT has been cushioned by contribution from derivative business, future volume trajectory may be materially altered by two major events: 1. Reducing lot sizes to 1/10th of current size, which could substantially raise liquidity, but the outcome is clouded by a whole host of market reforms scheduled to be implemented over the next two years 2. U.S. interest rate hikes, which widely expected to start in mid-2015 are likely to negative impact on SGX ADT as it did the last time round, as velocity compressed on a relatively unaffected market cap.