Can SGX shares hit S$11?

• Singapore Exchange Ltd (SGX: S68) share price closed at S$9.68 on Wednesday (27 July 2022)
• The bourse operator has signed a new agreement with the New York Stock Exchange
• UOB lifted its rating on SGX to ‘buy’
• Keen to trade SGX shares? Open an account with us to start today.

SGX stock price: what’s the update?

Singapore Exchange (SGX) shares have declined 1.7% in the last one week. Despite the present bearishness, the stock is still up by 3.2% this year, with markets in recovery mode.

In terms of stock outlook, the latest analyst sentiments published by SGX StockFacts show a consensus rating of ‘neutral’, alongside a price target of S$10.26 on the stock.

The price target equates to a 6% upside potential from SGX’s last traded price of S$9.68 on Wednesday.

UOB’s equity research team lifted its rating on the stock to ‘buy’ and price target from S$9.55 to S$11.09 in its latest investor note on 20 July.

The higher price target was because the analysts believe the stock has more price upsides in store, being that it was trading below its historical price-to-earnings mean.

UOB also predicted that SGX will post strong results in the second half of FY2022, on the back of solid growths from most segments (minus cash equities) as indicated by sturdy FY2022 volumes.

Finally, the analysts increased their earnings prediction for SGX’s FY2022 to FY2024 by 3% to 4% respectively, in light of strong results from the equity derivatives and commodities (FICC) segments.

SGX and NYSE sign memorandum of understanding

SGX Group and the NYSE signed a new agreement on 21 July 2022 to collaborate on the dual listing of companies on both exchanges.

The agreement will also see both companies work together in a few other key areas focused on the capital markets, including identifying and developing new environmental, social and governance products and services; supporting index product development at SGX Group and NYSE affiliate ICE Data Indices; and exploring new exchange-traded fund products.

‘This agreement underscores SGX Group and NYSE’s joint interest in driving greater collaboration between the two exchanges,’ said Loh Boon Chye, CEO of SGX Group.

‘It aims to create a more connected ecosystem to facilitate access to capital and the development of new investment solutions to address growing complex needs of market participants and investors.’

Thinking of trading SGX shares?

Go long or short via CFDs on SGX and other Singapore shares with our award-winning platform.* Open an account with us to start trading shares immediately.

_{*Awarded the Best Online Trading Platform by Influential Brands in 2021.}