Shares of Singapore Exchange rose as much as 2.6% to a six-month high after Deutsche Bank highlighted that the bourse operator may benefit from improving turnover on its exchange, reported Reuters.

By 9:47 a.m., SGX shares were up 2.3% at $7.21 with more than 1.5 million shares traded versus its average daily volume of 4.6 milion over the last five sessions.
SGX provides exposure to rebounding markets, given that about 60% of its earnings come from trading and clearing activity, Deutsche Bank said in a report.

 

Last week, the bourse operator said daily average value of securities traded grew 47% in January from a month ago, but was down 27% from a year ago. 

 

SGX shares have gained about 17% so far this year in a broader market up 12%.

 

Deutsche said it expects a more sustained recovery in market activity.

 

“With Singapore relatively more exposed to Western economic developments, we believe favourable outcomes in Europe and the U.S. should benefit both sentiment and turnover,” it added.