These stronger operating numbers, along with prospects of market momentum carrying into the new year, have prompted several analysts to raise their target prices for the bourse, which is already trading near record levels.
UOB Kay Hian’s Roy Chen notes that for Jul-Nov, total traded value for securities rose 19.3% y-o-y, outpacing his full-year projection of 16% growth.
Derivatives volumes also surpassed expectations, with commodity and currency derivative contracts up 21.1% and 12.4% y-o-y, respectively (versus UOBKH’s mid-single-digit growth forecasts). Commodity outperformance was driven primarily by iron ore contracts amid geopolitical uncertainty and expectations of stronger infrastructure spending in China.
In currency derivatives, INR/USD futures led the beat, with traded volume jumping 43.0% y-o-y, supported by robust Indian equity inflows and strong hedging demand against a volatile rupee.
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“We expect the MAS Equity Market Development Programme (EQDP) to continue driving trading activities in the Singapore equity market, while macro and geopolitical uncertainties should sustain hedging demand in derivatives,” says Chen, who has raised his target price to $17.30 from $16.66 previously.
That said, y-o-y growth is likely to moderate. According to Chen, securities traded value growth should ease to low-teens in 2HFY2026 (high-teens in 1HFY2026), and derivatives volumes should see a flattish to low single-digit growth, given the elevated base in 2HFY2025 created by the initial EQDP boost and heightened volatility amid the US-China tariff war.
While Chen maintains a “hold” rating on SGX due to its current price near to his target, he still likes SGX’s resilient multi-asset business model and believes its value will rise over time. “Investors should accumulate SGX on share price dips,” he says.
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Maybank’s Thilan Wickramasinghe, who rates this stock a “buy”, has raised his target price to from $18.81 from $17.67 previously. “Strong November equity market data affirms our belief that SGX is structurally shifting to a higher ADV (average daily value) operating environment. With equity opex largely stable, this allows for significant upside earnings risks as operating leverage flows through.”
“Market reforms promise to improve valuations and establish Singapore as a regional equities centre. SGX should be the first-degree beneficiary of these shifts, which could also drive upside dividend surprises in 2HFY2026,” adds Wickramasinghe.
In the past 10 years, SGX’s ADV has averaged $1.2 billion. November market ADV was $1.8 billion. Compared to January (just before the first MAS market reform recommendations were announced), ADV is 71% higher.
Wickramasinhe believes that confidence surrounding reforms, together with safe-haven liquidity flows to Singapore, have created a new, higher ADV base for SGX. The latest recommendations for reforming market microstructure could further increase liquidity from retail investors, whilst the EQDP programme should increase institutional investor demand next year.
Meanwhile, rising IPO momentum could further boost flows. In 1HFY2025, there was only one new listing, whereas the July-Nov period saw eight IPOs. Funds raised also increased from just $6 million to $2.3 billion.
“The last time we observed a similar level of IPOs was 13 years ago. We believe there is a structural shift in confidence for SGX as a listing venue. This could extend Singapore’s regional financial centre standing into equities as well, in our view,” says Wickramasinghe. He also believes the proposed SGX-Nasdaq dual-listing bridge could further entrench regional listing flows in Singapore.
Separately, while execution is yet to be seen, the proposed ‘Value Unlock’ programme could unleash latent valuation multiples over the medium term. He estimates 15 IPOs in FY2026 and 23 in FY2027.
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“In 2HFY2026, we believe there may be upside surprise risks to dividends given stronger operating leverage, and structural reshaping of SGX’s operating environment,” adds Wickramasinghe.
RHB Bank Singapore’s Shekhar Jaiswal has also raised his target price. Previously priced at $17.40, he now deems this counter worth $17.90.
He deems SGX’s 5MFY2026 operating metrics as “robust”, with year-to-date securities daily average value (SDAV) and derivatives daily average volume (DDAV) up 19% and 6% y-o-y, respectively. “Healthy November activity led to a modest 2.5% uplift to our 1HFY2026 SDAV, while DDAV remained in line.”
“While the medium- to long-term outlook is supported by regulatory initiatives, EQDP fund deployment and favourable macro drivers, valuations look stretched, and we therefore would prefer to accumulate the stock at lower levels,” says Jaiswal, whose call is “neutral”.
Jaiswal has made marginal forecast adjustments and included a sensitivity analysis in this report. His estimates remain above the consensus and are well within SGX’s growth guidance.
“We expect continued support from EQDP fund deployments. A softer Singapore Overnight Rate Average and expected US Federal Reserve rate cuts in 2026 could lift demand for REITs and other yield assets, sustaining cash-equity activity, while evolving US–China dynamics should support derivatives volumes,” he adds.
