SGX

SGX: UBS upgrades to Neutral from Sell, albeit on a lower TP of $6.50 from $6.60. Says, over the past 3 months EPS expectations for FY13 have moderated another 3-4% as trading volumes have in general remained weak. YTD average daily turnover for the securities market is $1.29b. Meanwhile, the past quarter the shares have underperformed the STI by some 5%. As such, the stock trading more in-line at 21.7x fwd P/E, just marginally ahead of the 5 year avg fwd P/E of 20.7x. Valuation relative to HKEx has also swung in SGX’s favour, after HKEx’s significant out-performance over SGX, leaving SGX now trading 1.2 std dev below its 5 year average P/E relative. Yield at ~4.5% provides additional support to the shares.