SGX

SGX: Weak set of 1Q13 results which were slightly below estimates. Rev at $160.5m, -10% yoy and +2%qoq, while core net profit at $74.3m, -15% yoy and +2% qoq. Drop in rev yoy was mainly weighed by a decrease in securities rev at $58.1m, -19% yoy. Securities daily average traded value (SDAV) was $1.3b vs $1.6b yoy and $1.1b qoq. Depository services rev also weakened at $20.8m, -21% yoy as securities settlement rev was down due to a decline in institutional trades and also as the number of contracts processed declined 19% yoy. Derivatives had a better performance with rev at $45.1m, +5% yoy. This is despite DAV at 306,811 contracts, - 4.8% yoy and -3.9% qoq, as newer contracts like the Indian Nifty futures and options, China A50 futures, Nikkei225 options and MSCI Indonesia futures continued to grow, accounting for 38% of daily average vol. Going forward, grp note that the IPO and bond issuance pipelines remain healthy and will continue to invest resources in developing new products and services, and strengthening regulatory and risk management capabilities. Ratings as follow: CLSA maintains Sell with $5.75 TP Mizhuho maintains U/p with $5.70 TP Nomura maintains Neutral with $7.60 TP