SGX

SGX: Mar trading volume rose; SDAV unlikely to be sustained
- Mar total securities turnover reached $27.3b (+9% y/y; +13% m/m), mainly from three additional trading days (Mar: 22 vs Feb: 19), while securities daily average value (SDAV) slid to $1.2b (+9% y/y; -2% m/m) amid the absence of market volatility.
- Derivatives volume rose to 17.1m (+15% y/y; +23% m/m), led by equity index futures (+3% y/y; +18% m/m), while commodities derivatives volume soared to 2.3m (+279% y/y; +94% m/m) from increased iron ore (+292% y/y; +96% m/m) and forward freight (+263% y/y; +55% m/m) contracts.
- Some market watchers are of the view that SGX is unlikely to sustain the $1.2b average SDAV achieved in 3QFY6/16 and deem current valuation of 23x forward P/E as expensive.
- Bloomberg consensus currently has 9 Buy, 7 Hold and 2 Sell ratings with average TP of $7.70 for SGX.