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SGX started at 'buy' on cyclical upturn

Samantha Chiew
Samantha Chiew12/20/2017 11:20 AM GMT+08  • 2 min read
SGX started at 'buy' on cyclical upturn
SINGAPORE (Dec 20): Maybank Kim Eng is initiating coverage on Singapore Exchange (SGX) with a “buy” call and a target price of $8.30.
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SINGAPORE (Dec 20): Maybank Kim Eng is initiating coverage on Singapore Exchange (SGX) with a “buy” call and a target price of $8.30.

“SGX is a good proxy to ride the cyclical upturn,” says analyst Ng Li Hiang in a Wednesday report. “We see support from its strong cash position, healthy balance sheet and decent dividend yields of close to 4%.”

According to Ng, SGX’s earnings has scope to improve on the back of three main factors: a healthy market cap from a healthy IPO pipeline; a stronger momentum of securities daily average traded value (SDAV) from an improving economic outlook; and growth from SGX’s derivatives daily average volume (DDAV), which is likely to sustain on the back of higher open interest, expansion of its product offerings, and its ability to extend the derivatives value chain.

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