"Furthermore, SGX will also benefit from increased hedging activities for its derivatives business given heightened market volatility," says OCBC in its April 10 report.
For the year ending June, SGX has reaffirmed that costs will increase by just 2 - 4% and for its capex to range between $70 and $75 million, both of which are at the lower end of its guidance.
"We view management’s focus on cost control as a positive amid current macroeconomic uncertainties."
"Although we maintain our earnings projections for now, we lift our fair value estimate from $13.68 to $14.09 after rolling forward our valuations to 23.0x our FY2026 core earnings per share forecast," says OCBC.
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SGX shares changed hands at $12.76 as at 1.32 pm, up 1.67%.
