SGX

SGX: Strong set of results above estimates. Grp reported its largest qtrly profit since the 2008 financial crisis, as a surge in trading volumes pushed its earnings up 26%. Net profit at $97.7m was well above the $77.8m earned yoy. The daily average traded value of securities on the exchange rose to $1.7b in 3Q vs $1.46b yoy and well above the $1.2b qoq. Grp's derivatives business saw an average daily trading volume of 479,235 contracts, a 52% yoy. Despite the strong results, SGX note that maintaining this performance for the rest of the year will depend on whether the improved sentiment in global markets continues. Global economic conditions remain volatile. It is uncertain if current market conditions will persist. Add however that its pipeline for initial public offerings and bond listings remain strong. Ratings as follows: CIMB maintains U/p with $7.29 TP CS maintains O/p with $9.25 TP. Deutsche maintains Hold at $7.90 TP Nomura maintains Neutral with $7.60 TP