Singapore Exchange 03 (Feb 11 - Dec 24)

[winston]

not vested

Still a long road from here

4QFY16 net profit of S$76.8m in line; FY16 at 99%/98% of our/consensus forecast.

Securities clearing and derivatives revenues fell short of expectations on lower margins, but made up for by lower expenses, which came in below guidance.

Final DPS of 13 Scts declared, bringing total DPS to 28 Scts (86% payout ratio).

Maintain Reduce. We cut our FY17-18 EPS by 2-4%, but our DDM-based target price edges up to S$7.24 as we roll our valuation forward to FY17.

Source: CIMB

https://brokingrfs.cimb.com/DbBjiLAu_qm ... GuzRw2.pdf

[winston]

SGX: Lack of price drivers for now

Singapore Exchange (SGX) posted a 20% YoY and 14% QoQ decline in 4QFY16 net profit to S$76.8m, below consensus and our expectations.

This was largely due to an impairment charge of S$6m for its investment in Bombay Stock Exchange. Excluding this, net earnings would have been in line with expectations.

Expenses have risen faster than revenue, resulting in three consecutive years of operating margin decline.

Management is looking at disciplined cost controls amidst a challenging operating environment.

Against this backdrop, we have cut FY17 earnings from S$382m to S$361m.

Rolling our estimate forward and using 21x earnings, we dropped our fair value estimate from S$7.40 to S$7.36

Source: OCBC

[winston]

not vested

Singapore Exchange Reportedly Plans to Acquire Baltic Exchange with US$100M

Singapore Exchange is ready to provide a formal offer to buy London's Baltic Exchange following months of negotiations, Reuters quoted from sources, as saying.

Reportedly, both parties have started exclusive talks and the Singapore Exchange is preparing to make a formal offer with potential trading value of approximately US$100 million.

In addition, Brexit is not likely to pose impacts on the transaction.

Source: AAStocks Financial News

[behappyalways]

Singapore Exchange prepares formal offer to buy UK's Baltic Exchange
http://sgx.i3investor.com/servlets/fdnews/62552.jsp

[behappyalways]

SGX to offer $137 mil for Baltic Exchange
http://sgx.i3investor.com/servlets/fdnews/62616.jsp

[winston]

not vested

SGX’s securities turnover value and derivatives volume dip in July

By Jude Chan

SINGAPORE (Aug 8): Singapore Exchange (SGX) on Monday announced total securities market turnover in July fell to $21.0 billion, down 7% compared to a month ago.

Total derivatives volume was 12.9 million in July, down 9% compared to a month ago.

Compared to the same month last year, total securities market turnover and total derivatives volume fell 13% and 40%, respectively.

Securities

Securities daily average value (SDAV) rose 3% month on month but fell 4% year on year to S$1.1 billion.

Market turnover value of Exchange Traded Funds (ETFs) was $275.0 million, up 4% m-o-m and up 8% y-o-y.

In July, SGX welcomed two new Mainboard listings, raising $385.0 million; four new Catalist listings, raising $37.6 million; and 54 new bond listings, raising $19.0 billion.

Total market capitalisation value of 768 listed companies stood at $910.3 billion as at end July 2016.

Derivatives

Equity Index Futures volume fell to 10.5 million, 9% lower a month ago and 47% lower compared to the same period last year.

While FTSE China A50 Index Futures remained the most active contract with volume of 5.0 million, it dipped 1% m-o-m and 65% lower than the same period last year.

SGX Nifty 50 Index Futures volume was 1.5 million, down 14% m-o-m and down 10% y-o-y.

Nikkei 225 Index Futures volume was 1.8 million, down 29% m-o-m and down 10% y-o-y.

Value of cleared OTC SGD Interest Rate Swaps was $11.8 billion, down 29% m-o-m and down 16% y-o-y.

SGX closed 0.93% higher at $7.64 on Monday.

Source: The Edgee

[behappyalways]

SGX Chases a Tech Mirage
https://www.bloomberg.com/gadfly/articl ... glory-days

[winston]

by behappyalways:-

SGX loses $6.1b market cap in delistings

Source: SBR

http://sbr.com.sg/stocks/news/sgx-loses ... delistings

[winston]

not vested

Markets remain lacklustre

We expect SGX to post a 1QFY17 net profit of S$81.3m (-2% qoq, -18% yoy).

Securities average daily value traded (ADVT) declined 3% qoq to fall below S$1bn, as market activity remained subdued after Brexit.

Derivative traded volume fell 6% qoq on lower demand across all key products, including equity index futures, iron ore futures and FX futures.

Maintain Reduce, with an unchanged DDM-based target price of S$7.24. We see further near-term pressure going into a seasonally-weak quarter.

Source: CIMB

https://brokingrfs.cimb.com/pXrqHYrc10K ... K8Uvg2.pdf

[winston]

not vested

3 reasons why SGX’s 1Q17 earnings report will be lacklustre

By Jude Chan

SINGAPORE (Oct 13): CIMB is keeping its “reduce” rating on Singapore Exchange with an unchanged target price of $7.24 ahead of SGX’s 1QFY17 earnings report, scheduled to be announced after market closes on Oct 19.

CIMB analyst Jessalynn Chen expects SGX to report an 18% y-o-y drop in net profit to $81.3 million for 1Q, accounting for 22% of full-year forecast.

“Although SGX’s share price has fallen 8% since its peak in April, we still see downside risk amid sustained weakness in securities and derivative volumes,” says Chen in a Wednesday report.

“Near term, we expect market activity to remain subdued, going into a seasonally weak quarter,” she adds.

Here are 3 reasons why CIMB’s Chen believes SGX’s 1Q17 earnings report is going to be lacklustre.


• Securities ADVT declines further post-Brexit

SGX already saw a challenging 4Q16 as markets retreated in a risk-off mode leading up to Brexit. Securities average daily value traded (ADVT), however, continued its decline in 1Q17.

According to Chen, SGX’s securities ADVT fell a further 3% q-o-q in the first quarter to $988 million –below CIMB’s forecast of $1.1 billion.


• Derivative volume down

Derivative traded volume was down 6% q-o-q to 40.1 million contracts in 1Q17, says Chen.

This was on the back of demand for China A50 futures falling 4% q-o-q, Nikkei 225 futures down 13% q-o-q, Nifty futures down 3% q-o-q, iron ore futures down 8% q-o-q, and FX futures down 5% q-o-q.

Overall, however, Chen says derivative revenue is likely to have declined by only 3% q-o-q to $72.6 million, as the average fee per contract could have improved due to a smaller proportion of lower-margin contracts.


• Baltic Exchange acquisition “unlikely to move the needle”

SGX’s deal to buy market-information service Baltic Exchange for 87 million pounds ($153 million) is expected to complete toward the end of November. But Chen says the acquisition will “hardly move the needle” for SGX.

(See SGX agrees to buy Baltic Exchange for $154 mil)

She notes that based on its latest 2016 annual report ending March, Baltic Exchange posted an operating margin of 9-11% in FY15-16 – far below SGX’s margin of 50%.

“Net profit of £0.97 million - 2.25 million will also hardly move the needle at 0.4%-1.0% accretion to our FY17 earnings forecast,” Chen adds. “Forward freight agreement futures and options currently make up a mere 0.3% of total derivative traded volume on SGX.”

“We see further near-term pressure going into a seasonally-weak quarter,” Chen says.

Shares of SGX closed at $7.27.

Source: The Edge

http://smr.theedgemarkets.com/article/3 ... 1-87358173