IIFL downgrades SGX to sell from reduce

Stock Name: SGX
Company Name: SINGAPORE EXCHANGE LIMITED

Research House: IIFL

Price Call: SELL

Target Price: 5.44

IIFL has downgraded Asia’s second-largest listed bourse Singapore Exchange (SGX) (SGXL.SI) to sell from reduce and cut its target price to $5.44 from $6.12.

IIFL has cut its net profit estimate for SGX by 7% for fiscal 2012 and 2% for 2013 to reflect a decline in securities volume.

The brokerage has also lowered its estimate for the average daily turnover for SGX’s securities business for 2012 by 13% to $1.4 billion, which is 14% below the year ago.

“Gloomy outlook for global and Asian stock markets continues to weigh down on SGX securities turnover,” said IIFL in a report.

 

At 10:04 a.m., shares of SGX were 0.33% higher at $6.06, but have fallen 28% since the start of the year.