SGX

SGX: DBSV maintains Buys buy lowers TP to $9.50 from $10.50. Note that trading vol and values in the securities market have softened. Average daily trading vol and value stands at 1.56b and $1.62b respectively, while derivatives rev are likely to be soft. Although derivatives trading volumes have remained relatively robust, the weak US$(to S$) is expected to cap upside.….

House lowers average daily volume and value assumption by 5% across FYJun11-13. Coupled with soft derivatives and other rev, trim earnings by 15-17% over the same period. Estimate a full year DPS of 27c (90% payout). At current price, grp trades at is trading at 21x FY11 and only 18x FY12 P/E, below its 5-year historical mean and regional peers at 27x FY11 and 23x FY12 P/E.