RHB cuts Singapore Exchange target price on weaker trading volumes
RHB Research lowered SGX earnings estimates by 8 to 8.5 percent and cut its target price to S$20.30. The neutral rating is maintained.
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what happened
RHB Research analyst Shekhar Jaiswal said in a report, as relayed by Market Talk, that Singapore Exchange faces an earnings hit from likely lower trading volumes. According to the report, SGX's securities turnover and daily average value fell from the previous month in September. The implied securities and derivatives activity for the first half of fiscal 2027 runs 7.4% and 10.2% below RHB's forecasts, respectively.
RHB cut its earnings estimates for SGX by 8.3% for fiscal 2027, 8.4% for 2028 and 8.5% for 2029. The target price was lowered to S$20.30 from S$22.20, while the neutral rating was kept. The analyst argued that SGX's valuation premium to regional peers remains defensible, partly because of Singapore's structural advantages. The shares were trading 0.2% lower at S$20.73.
why it matters
Exchange revenue depends directly on trading volumes and fees, so a drop in activity quickly feeds into profit forecasts. The revision concerns a single company, but it shows how slower turnover can hit the earnings of exchange operators.
market impact
SGX: weaker trading volumes cut profit forecasts and weigh on the exchange's shares
tags
instruments
sources
- Singapore Exchange Faces Earnings Hit From Likely Lower Trading Volumes — Market Talk, 20 October 2026 at 02:13 UTC
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