SGX is benefiting from the 15.7% advance in the Singapore stock market so far this year
SHARES of Singapore Exchange (SGX) charged to their highest since December 2007, driven by near-term volatility as turnover and trading volumes advance.
As at 12 pm on Friday (Nov 22), the bourse operator gained as much as 1.9 per cent or S$0.24 to S$12.77 with 1.8 million shares transacted. The index counter earlier traded at an intraday high of S$12.80.
SGX is benefiting from the 15.7 per cent advance in the Singapore stock market so far this year. Robust performance by the city-state’s three banks lifted the benchmark Straits Times Index (STI) to a 17-year peak this week.
This makes Singapore the best-performing stock market in South-east Asia this year. Morgan Stanley analysts said they expect the STI to continue its momentum next year as the central bank unveils measures to revive the market.
Expectations that the US Federal Reserve might slow down the pace of interest rate cuts after the presidential elections in particular are positive for the banks, which are STI heavyweights.
RHB said in a Wednesday report that this could raise investor interest in Singapore stocks and keep turnover elevated. While the bank kept its “hold” recommendation on SGX, it raised its target price to S$12.80 and forecasts for the current year ending June 2025 by 7.5 per cent.
Copyright The Business Times. All rights reserved.
