Are SGX shares worth trading now?
UOB analysts have raised their price target on the stock to S$9.55 a share while keeping a 'hold' call.
- Singapore Exchange Ltd (SGX: S68) share price rallied to a high of S$9.67 on Tuesday (12 July 2022)
- The bourse operator reported ‘strong’ trading volume for June 2022
- Analysts foresee some upside on the stock in the next 12 months
- Keen to trade SGX shares? Open an account with us to start today
SGX stock price: what’s the latest?
Singapore Exchange (SGX) shares opened higher on Tuesday, after it released market statistics for June 2022.
The blue-chip counter is up slightly in the last one month and 2.6% year-to-date.
The latest analyst sentiments published by SGX StockFacts show a consensus rating of around ‘neutral’, alongside a price target of S$10.26 on the stock.
The price target equates to a 6.7% upside potential from SGX’s last traded price of S$9.62 on Wednesday.
UOB and RHB analysts recently reiterated ‘hold’ and ‘neutral’ calls on the stock. UOB raised price target to S$9.55 a share from S$9.33 previously, while RHB kept price target unchanged at S$10.40 a share.
UOB’s equity research team increased its FY22-24 profit forecasts by 2% to 4% respectively, on the back of higher growth assumptions for the Fixed Income, Currencies and Commodities (FICC) segment.
Meanwhile, RHB kept their earnings estimates for FY2022 at S$625 million, which is higher than the industry average of S$606 million.
How did SGX perform in June 2022?
The bourse operator said derivatives trading activity ‘rose strongly’ in June 2022, ‘rounding off a robust half-year as sustained volatility in global markets drove institutional demand for portfolio risk management’.
Derivatives traded volume increased 24% year-on-year (YoY) in June to 23.5 million contracts, the highest in three months.
For the first half of 2022 – a period when participants were challenged by severe market conditions, volume was up 13% from July to December 2021 at 116.7 million contracts, with derivatives daily average volume (DDAV) rising 18%.
SGX Equity Derivatives traded volume also increased 25% YoY in June to 16.9 million contracts. Gains were led by SGX FTSE China A50 Index Futures, as volume climbed 20% YoY for the month to 9.4 million contracts.
Foreign exchange (FX) derivatives saw total futures traded volume rising 21% YoY to 2.9 million contracts. The volume of SGX USD/CNH Futures climbed 59% YoY to 1.5 million, reinforcing the contract’s position as the world’s most widely traded international RMB futures.
Commodity derivatives volume rose 32% YoY in June to 2.9 million contracts, led by a 43% YoY gain in benchmark iron ore derivatives to 2.6 million contracts.
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