SGX (10 Aug 16)

SGX: (S$7.64) Jul securities turnover remain lukewarm
- Jul securities turnover declined to $21b (-13% y/y, -7% m/m) on lower trading days (-10%) on both a year and month ago, with lower daily average value of $1.1b (-4% y/y, +3% m/m).
- Derivatives volume continue to slump (-40% y/y; -9% m/m), , while commodities derivatives rose to 1.3m contracts (+33% y/y; +29% m/m).
- Just a week ago, SGX made a hefty bid for London's Baltic Exchange in a bid to expand its product suite.
- While SGX has a monopoly in Singapore, any near-term catalysts remain to be unseen given that measures to shore up liquidity and boost trading volumes have not been proven effective.
- On a relative basis, SGX’s forward P/E of 22.3x and dividend yield of 3.7% appear more attractive than those of HKEx (36.9x, 3.1%).