J.P. Morgan has downgraded Singapore Exchange (SGX) (SGXL.SI) to underweight from neutral and lowered its target price to $5.30 from $7.00.
J.P. Morgan said SGX’s volumes in the fourth quarter last year were exceptionally low at $1.088 billionper day.
J.P. Morgan said SGX’s volumes in the fourth quarter last year were exceptionally low at $1.088 billionper day.
The bank also noted that the volumes in January have been tepid so far, belying hopes of a rebound, and the Lunar New Year period generally sees slow volumes.
SGX is slated to report its second-quarter result for its 2012 fiscal year on Jan 16 and J.P. Morgan said it expects the bourse to post a profit of $59 million, down 33% quarter-on-quarter and 21% year-on-year.
At 10:50 a.m., SGX shares were down 0.8% at $6.11.
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