However, with this counter up 30% year to date, which brings its valuation closer to historical ranges’ upper end and a level of yield deemed "underwhelming", Jaiswal has kept his "neutral" call.
In August, securities turnover increased by 17% y-o-y but down 1% m-o-m to $33.6 billion, with daily average turnover at $1.60 billion, which was up 17% y-o-y and up 9% m-o-m.
Jaiswal notes that trading volume was led by small and mid-cap counters, which enjoyed an 11% increase in daily average in August over July, with institutional investors buying more.
This momentum, seen since February, should persist, supported by regulatory initiatives aimed at broadening equity participation beyond the STI constituents, says Jaiswal, who has raised his estimates for trading turnover.
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In addition, with the momentum for new listings improving, he is assuming 15 listings in the current FY2026 and 10 each for the coming FY2027 and FY2028.
While valuation is inching towards stretched levels, Jaiswal sees near-term support drivers, including yet to be deployed EQDP funds, a revival in IPO activity, and a positive view towards Singapore equities.
"The macro backdrop is also supportive, with declining SORA and an anticipated US Federal Funds Rate cut likely to lift demand for REITs and other yield plays, reinforcing trading volumes," he adds.
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His new target price of $17.80 is based on 25x earnings.
SGX shares traded at $17.02 as at 3.03 pm, up 2.72% for the day and up 36.05%.
