OCBC Investment Research lowered its target price on shares of Singapore Exchange to $6.80 from $7.00 and maintained its hold rating to take into account a more cautious environment for the bourse operator.
SGX shares were up 0.3% at $6.67 and have risen nearly 9 per cent so far this year. Last week, SGX reported a 23% drop in quarterly profit, hurt by a fall in securities income as volumes declined on global economic uncertainties.
SGX has recently announced new initiatives such as higher admission criteria for mainboard listing, revised bid-ask spreads, enhancing exchange traded fund products as well as emphasis on retail investor education and participation, OCBC noted.
“While there are more initiatives ahead, global market conditions remain weak and this will mean that most of these measures will not lead to immediate results,” OCBC said.
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