Phillip Securities analyst Glenn Thum has maintained their bullish stance on SPXCF stock, giving a Buy rating yesterday.
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Glenn Thum has given his Buy rating due to a combination of factors including the Singapore Exchange’s (SGX) strategic initiatives and financial performance. The company has shown a consistent increase in quarterly dividends, with plans to continue this trend until FY28, reflecting strong shareholder returns. Despite a slight underperformance in revenue and earnings for FY25, SGX’s growth in the Fixed Income, Currencies, and Commodities (FICC) segment, particularly in currency and commodity derivatives, has been noteworthy.
Moreover, SGX’s equities revenue has benefited from a recovery in securities daily average value and equity derivatives volumes. The company’s OTC FX business is also experiencing significant growth, contributing positively to its earnings. While there are challenges such as declining treasury income due to lower interest rates, SGX’s position as a stable growth entity in Asia, especially during periods of market volatility, supports the Buy rating. The target price has been adjusted upwards, indicating confidence in SGX’s future performance.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$18.20 price target.
SPXCF’s price has also changed moderately for the past six months – from $10.450 to $13.000, which is a 24.40% increase.