SGX: February securities trading value was up 12% y/y and down 3% m/m to $1.2b, the result of CNY holiday in February. Compared to other Asia Ex-Japan exchanges however, SGX relatively outperformed as the rest saw an 18% drop in turnover.
Derivatives market was up 21% y/y but down 34% m/m as the Chinese market was closed for five trading days. Predictably, the biggest drag came from China-themed derivatives products such as China A50 Futures. At the same time, volatility of Chinese stock market has tapered, as the Shanghai Composite is now range-bound 3100-3400.
Credit Suisse sees no new catalyst and rates Neutral with TP $7.75, noting strong yield (~4%). Deustche Bank sees new leadership to provide further direction to SGX’s cash market and is encouraged by the resilience shown in February statistics, rates Buy with TP $8.70
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