Singapore Exchange 02 (Feb 10 - Jan 11)

[winston]

Not vested

RESEARCH ALERT-Phillip lowers target price for SGX to S$9.88

SINGAPORE, Jan 19 (Reuters) - Phillip Securities has lowered its target price for Singapore Exchange , Asia's second-largest listed bourse operator, to S$9.88 from S$10.50 but maintained its "buy" rating.

STATEMENT: SGX earned S$81.7 million ($63.5 million) adjusted net profit in its fiscal second quarter ended December compared with S$71.8 million a year ago. If transaction costs related to the merger with ASX were included, net profit was S$74.2 million, little changed from the fiscal first quarter.

Phillip said that while SGX generally has a set of positive results, it was disappointed by the bourse operator's securities daily average value and trading volume in American Depository Receipts, which have fallen below its estimates.

The brokerage said that it had lowered its earnings per share estimates for SGX to S$0.33 from S$0.39, adding that further disappointments to its forecast will result in a rating downgrade.

However, Phillip said the expected listing of Hutchison Port on SGX, together with Prudential and Global Logistic Properties , show that SGX is actively courting big names and issuers.

Hutchison Whampoa <0013.HK> plans to spin off its holdings in two ports assets, a move expected to raise $6 billion in what could be Southeast Asia's largest-ever stock offering.

[ID:nTOE70H01C] SGX also said on Wednesday it will launch the world's fastest trading engine, called SGX Reach, on Aug 15 this year.


Source: Reuters

[iam802]

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Very narrow trading range which is good. Because if it goes against your position, the loss is minimise.

Just make sure to have a cut-loss in place