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March Jul 24, 2018 – 2:09 PM
BROKER RHB maintained its "buy" call on the Singapore Stock Exchange (SGX) with a target price of US $ 9, an increase of 20%.
At 3:15 pm on Tuesday, the counter is trading at 7.46 Singapore dollars, down 0.3 percent or two cents from Singapore.
SGX will publish its results for fiscal year 2018 on July 27, after the close of the market.
RHB noted that Bloomberg data indicating that the average daily value of SGX's 2018 year-end securities is $ 1.24 billion. its forecasts of $ 1.2 billion Singapore, and more than $ 1.12 billion in fiscal 2017.
Although the monthly SADV of $ 1.1 billion in July 2018 was low , RHB analysts noted that this may be partly due to the FIFA World Cup, which has led to lower volumes.
For the future, analysts are optimistic about the SADV of the Singapore Stock Exchange, and have assumed 1.39 billion Australian dollars for the fiscal year 2019.
"Global developments, including further increases in federal funds rate and commercial concerns The broker also forecasts an average daily derivative volume (DADV) of $ 0.82 million for the 2019 fiscal year, according to the RHB analysts firm Leng Seng Choon
., Taking into account some negative aspects of the Nifty 50 Indian index futures trading, which account for 11 percent of the total SGX derivatives
RHB business is also expected good earnings growth and strong balance sheet
"SGX's 4.6% dividend yield for fiscal1919 is almost twice the yield on Singapore's 10-year sovereign bonds 2.42%. We expect net earnings growth of 9.7% for the 2019 financial year. SGX is in a net cash position. RHB also noted that its target price is based on a P / E 2019 (price / earnings ratio) of 24 times, or a standard deviation above the three-year average of 22.2 times.
Nevertheless, the main risks include global economic fluctuations and geopolitical developments.
The result of arbitrage between SGX and India could also affect the volume of derivatives trading and hence profits.
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