What’s next for SGX shares?

↵Singapore Exchange (SGX: S68) share price rallied nearly 2% on Thursday (12 May 2021)

The bourse operator reported its April 2022 statistics, in which total derivatives trading volume ‘rose to a record’

The Straits Times Index was the strongest performing developed-market benchmark globally in the first four months of 2022

CIMB analysts recently reiterated an ‘add’ call on SGX, while UOB kept a ‘hold’ rating

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SGX share price: what’s the latest?

Singapore Exchange (SGX) shares rallied as much as 2% to a high of S$9.57, after releasing its market statistics for April 2022.

The blue-chip counter is up 1.5% year to date but down by almost 5% in the last one month.

The latest analyst sentiments published by SGX StockFacts show a consensus rating skewed toward ‘neutral’, alongside a price target of S$10.145 on the stock.

The price target equates to an over 6% upside potential from SGX’s last traded price of S$9.52 on Thursday.

CIMB analysts previously reiterated an ‘add’ call and price target of S$10.40 on the stock, with UOB rating the stock a ‘hold’ while raising price target to S$9.33 (from S$9.09).

STI Index: ‘strongest performing developed-market benchmark’ this year

SGX’s market statistics for April 2022 revealed that derivatives trading volume ‘rose to a record amid macro uncertainties, while the continuing Russia-Ukraine conflict drove hedging activity in freight’.

Derivatives daily average volume rose 25% year-on-year (y-o-y) to 1.1 million contracts in April, reaching an all-time high of almost three million contracts on 26 April 2022.

Total traded volume for the month gained 19% y-o-y to 20.8 million contracts.

Equity index futures volume climbed 23% y-o-y to 15.1 million contracts, while FX futures volume increased 27% y-o-y to 2.8 million contracts – the highest since March 2021.

The traded volume of SGX FTSE China A50 Index futures gained 37% y-o-y in April to 9.1 million contracts, SGX USD/CNH Futures volume rose 58% y-o-y to 1.2 million contracts, while iron ore volume climbed 3% y-o-y to 1.8 million contracts.

SGX Nifty 50 Index futures traded volume increased 14% y-o-y to 2.4 million contracts, while SGX INR/USD Futures volume were up 9% y-o-y at 1.5 million contracts.

Commodity derivatives traded volume stood at 2.1 million contracts in April, easing as market volatility normalised from recent months.

Blue-chip barometer Straits Times Index (STI) declined 1.5% to 3,356.9. Over the first four months of the year, the STI was the strongest performing developed-market benchmark globally, generating a 7.5% gain, with dividends boosting the total return to 8.7%.

This was a significant outperformance to the FTSE Asia Pacific Index and FTSE All-World Index. From January to April, Singapore stocks received close to S$420 million of net institutional inflows.