SGX

SGX: SGX saw a pick-up in trading volumes across its securities and derivatives platforms in Apr ’15.

Latest data revealed that total value of securities traded rose to $26.5b (+3% y/y, +6% m/m), with the average daily traded value climbing 3% y/y and 11% m/m to $1.3b. This was achieved on a achieved on the back of a market rally in small and mid caps. For the month, there were three IPOs and 39 bond listings, raising more than $11.1b.

Derivatives volume soared to 16m contracts (+89% y/y, +10% m/m), with daily trading volume of 781,782 contracts (+87% y/y, +15% m/m). Notable performers were the SGX equity index futures totalling 14.6m contracts (+105% y/y, +10% m/m), and other Asian equity contracts, which showed double digit m/m growth.

Commodities delivered a solid performance, with total AsiaClear volume of 591,263 contracts, surging more than three-fold, and up 8% m/m. The most significant performer was in iron ore derivatives and SICOM rubber futures.

SGX continues to focus on a series of transformational initiatives in the securities market, including new product launches, international distribution and moves to strengthen its regulatory and risk management capabilities.

The exchange remains on the look out for further tie-ups and JVs in the commodities and derivatives markets as it attempts to diversify from its traditional securities business and widen its product offering.

At the current price, SGX trades at 26.2x forward P/E, in line with its regional peers. Overall, the street has 7 Buy, 9 Hold and 4 Sell ratings with a consensus TP of $8.26.