The Singapore Exchange (SGX) says it will release more details of the new index on Sept 22.

 

The statement, sent later on Sept 12, came after Minister for National Development and deputy chairman of the Monetary Authority of Singapore (MAS), Chee Hong Tat, announced that the bourse will launch a new index tracking companies outside of the Straits Times Index (STI) at the Singapore Institute of Directors&rsquo (SID) directors conference on the same day.

 

SGX Group' s head of equities, Ng Yao Loong, said that the group is " committed to doing its part by equipping listed companies with the necessary tools and resources to enhance shareholder value, and enabling investors to make confident and more informed decisions" .

 

Noting that sustainable growth in the local bourse is " in [a] large part" dependent on Singapore' s listcos unlocking value, Ng also notes that the transformation requires a " collective effort across the ecosystem" . " Our initiatives are mutually reinforcing: stronger corporate value enhancing practices generate greater visibility, while recognition through index inclusion motivates better performance. Together with transparent disclosure, these efforts will make listed companies &ndash especially those beyond the STI &ndash more visible to institutional and retail investors alike," says Ng.

 

On Chee' s point about communication, Tan Boon Gin, CEO of Singapore Exchange Regulation (SGX RegCo), says companies must " engage with investors better" in a bid to " complement corporate actions and financial management that unlock or increase shareholder value" .

 

" More institutional capital is entering the market. Companies that want to be noticed and rewarded for having quality management and business strategies must proactively communicate their outlook and strategies to provide forward-looking guidance," he adds. " This allows investors to take such decision-useful information into consideration and ascribe the right valuations to these companies. We intend to consult the market on whether companies should be required to disclose policies such as dividend and investor relations. This is how we collectively raise the bar in line with global best practices.&rdquo

 

Chew Sutat, Protem chairman of SGListCos and former SGX executive, says SGX' s push for meaningful investor communications is " timely" as interest in small- and mid-cap stocks is accelerating. " While some listed companies are already making strides in enhancing shareholder value and articulating their strategies, it is imperative for all listed companies to step up to tap on this momentum," he adds.

While it can raise the profile of larger non-STI stocks and attract fund products, analysts call for more clarity on criteria for inclusion

 

[SINGAPORE] Market watchers have floated ideas for the Singapore Exchange&rsquo s (SGX) upcoming equity index &ndash from one that tracks companies earning more than 70 per cent of their revenues at home to another that is centred on mid to large-cap stocks valued at up to S$20 billion. 

 

The new index, which will exclude constituents of the Straits Times Index (STI), is meant to &ldquo provide a useful lens to track how the next tier of large and liquid companies are evolving&rdquo , deputy chairman of the Monetary Authority of Singapore (MAS) Chee Hong Tat said on Friday (Sep 12).

 

Market watchers welcomed the move, with RHB Bank analyst Shekhar Jaiswal calling it &ldquo strategic and constructive&rdquo . 

 

Still, some cautioned that without clear differentiation, it risks becoming &ldquo just another index&rdquo , with non-STI indices such as the FTSE ST Mid & Small Cap Index already in the mix.

 

What a new index brings to the table

Glenn Thum, a research manager at Phillip Securities Research, said that the new index could raise the profile of larger non-STI stocks and attract fund products around these names. This will, in turn, improve the liquidity and valuations of these stocks.

 

&ldquo But without sufficient liquidity thresholds and investor demand, its impact could be limited,&rdquo said Thum.

 

Similarly, Jaiswal echoed these sentiments, warning that the new index could become &ldquo just another index&rdquo if there is no clear differentiator. 

 

He noted that the FTSE ST Mid and Small Cap Index, which was launched in July 2025 already comprises 74 constituents across real estate and investment trusts (Reits), business trusts and corporates. Some of these constituents are also part of the STI. 

 

&ldquo Unless more clarity is provided on the criteria for inclusion in the new index, (the new index) risks being a subset of the existing FTSE ST Mid and Small Cap Index, essentially excluding STI names. In that case, the incremental value-add may be limited,&rdquo said Jaiswal.

 

Adding value

For the new index to be a meaningful addition to the market, it would have to provide a good representation of a key segment of the Singapore market, said Carmen Lee, head of OCBC investment research.

 

Among Lee&rsquo s suggestions were a Singapore-focused index comprising companies with more than 70 per cent of earnings from Singapore, a mid-cap index as well as a Reit index.

 

Phillip Securities&rsquo Thum proposed targeting companies between S$500 million and S$20 billion in market capitalisation that have good liquidity and free float. The index should also be reviewed regularly, he added.

 

Among his picks for the index were   ComfortDelGro   : C52 0%,   AEM   : AWX +1.96%,   Golden Agri-Resources   : E5H +12.07%,   SIA Engineering   : S59 +0.32%,   Singapore Land   : U06 +0.62% and   UMS   : 558 +1.5%. It would &ldquo make sense&rdquo to include these companies in the index given their size, liquidity and sector relevance, said Thum. 

 

Market watchers also agreed that raising awareness of the upcoming index will be critical. 

 

OCBC&rsquo s Lee said it would be &ldquo ideal&rdquo to have products such as exchange-traded funds (ETFs) that track the new index as this would help to raise investor interest.

 

Greater information and disclosure on the index&rsquo s component stocks, such as weightage, methodology and reserve list, would also help to improve investor&rsquo s knowledge of the index, added Lee. 

 

Similarly, Thum said that research material from reputable brokerages on the index will help to raise awareness for the lesser known companies.

 

Said Thum: &ldquo (The new index) risks being ignored like other secondary indices, but it could gain traction if backed by ETFs, clear methodology and strong promotion.&rdquo  

The benchmark Straits Times Index rises 5.3% month on month to 4,137.77, outpacing regional peers

 

[SINGAPORE] The Singapore Exchange Group : S68 -0.44% (SGX Group) reported a three-month high in the trading value and volumes of its key products in July, as the local bourse started its 2026 financial year on an upward trajectory.

 

Total securities turnover value rose 27 per cent year on year in July, to S$33.8 billion, said the group in a bourse filing on Monday (Aug 11). The jump was driven by a surge in small and mid-cap stocks liquidity, which surged 94 per cent month on month to S$261 million.

 

Some 38.9 billion shares were traded in July, surging 44 per cent from about 27 billion in July 2024.

 

The volume of derivatives also rose, up 25 per cent year on year to 29.3 million contracts. The daily average volume was up 23 per cent at 1.3 million contracts.

 

The advances in derivatives volume and securities turnover came as &ldquo market activity reflected investor confidence across multiple asset classes&rdquo , SGX said.

 

The benchmark Straits Times Index (STI) rose 5.3 per cent month on month in July to 4,137.77 and closed at a record high of 4,273 on Jul 24. It outperformed most Asean peers.

 

Despite the high, the FTSE ST Small Cap Index and the FTSE ST Mid Cap index outperformed the STI, gaining 9.9 and 6.7 per cent month on month, respectively.

 

SGX shares are up 27 per cent year to date, having gained 3 per cent across the month before Monday&rsquo s announcement.

 

The STI has dipped slightly since the end of July, but nearly reached a new high after closing at 4,258.15 last Thursday.

 

Listings joy

Listings gained momentum in July, as NTT DC Reit and Info-Tech Systems joined the mainboard, while China Medical System marked a secondary listing. Lum Chang Creations, a spin-off from mainboard-listed Lum Chang Holdings, debuted on the Catalist board.

 

The first exchange-traded fund (ETF) to track the ChiNext Index through a Singdollar-hedged fund class launched on the SGX in July. Total ETF assets under management grew 36 per cent on-year to S$14.9 billion, said the SGX Group.

 

Singapore equities enjoyed a sustained upward trend in July, as the MSCI Singapore Index extended its rally for a third straight month. The daily average volume of SGX MSCI Singapore Index Futures rose 16 per cent to 48,137 contracts or US$1.6 billion notional value.

 

The traded volume for commodities surged 76 per cent year on year to an all-time high of nine million contracts, with increases across benchmark iron ore and freight derivatives, as well as petrochemicals contracts.

 

&ldquo The unique SGX Commodities offering enables market participants to risk-manage both cargo and freight on a single liquid and capital-efficient platform,&rdquo said the group.

 

Global volatility around India and US trade negotiations also saw SGX INR/USD foreign exchange futures traded volume rise 41 per cent year on year to 2.2 million contracts. Meanwhile, the heightened trade volatility also led to the USD/CNH forex futures volume climbing 7 per cent year on year to 3.1 million contracts, as the Chinese yuan reached an eight-month high against the US dollar.

 

The Singapore Exchange (SGX) is seeing &ldquo positive momentum in the stock market&rdquo with institutional and retail flows into the mid-cap stocks, says group CEO Loh Boon Chye at SGX&rsquo s FY2025 results briefing on Aug 8.

 

&ldquo Our index stocks, our REITs have always traded very well, but what has obviously changed is the mid-cap stocks,&rdquo he adds. &ldquo On top of that&hellip clearly there is shifting investment capital flows. We&rsquo re seeing that.&rdquo

 

The FY2025 was a &ldquo defining year&rdquo for SGX, marked by its strongest performance on record. During the year, SGX reported a record revenue and net profit with broad-based growth across all of its operating segments.

 

The shift in flows has benefitted SGX&rsquo s multi-asset strategy as the exchange sees more of its customers adding more asset classes to their portfolio.

 

Following its record year, SGX has proposed a final quarterly dividend of 10.5 cents per share, 1.5 cents higher and 16.7% up y-o-y. This brings SGX&rsquo s total FY2025 dividend to 37.5 cents per share.

 

The bourse has also proposed a 0.25-cent increase in its dividend every quarter from FY2026 to FY2028. Should the proposed increase go through, FY2026 will see a total dividend payout of 44.5 cents while FY2027 and FY2028 will see total dividends of 48.5 cents and 52.5 cents per share respectively.

 

&ldquo We&rsquo re confident in our ability to deliver the step up in dividends,&rdquo says chief financial officer (CFO) Daniel Koh, on the sustainability of SGX&rsquo s dividend growth. &ldquo But in this day and age, who knows what will happen&hellip [it could be like] Covid-19&hellip we always need to have the caveat in there, but we are confident.&rdquo

 

On balancing its dividend and investing in its core business, Loh said the group is looking at &ldquo sustainable long-term growth&rdquo .

 

While the group aims to deliver growth to its stakeholders and shareholders over the medium to long term, it seeks to balance that with returning capital in the form of guidance for the next three years.

 

At the same time, the group is looking to grow via opportunities such as bolt-on acquisitions.

 

The group&rsquo s strong balance sheet and cash flow will allow the team to look at value-accretive opportunities as well as sustain its dividends.

 

&ldquo I think FY2025 has clearly demonstrated that the multi-asset strategy that we&rsquo ve talked about for years is coming through in an environment like that. It&rsquo s not just FY2025, we&rsquo ve seen parts of that in FY2023 and FY2024,&rdquo Loh says.

 

He adds that he hopes the group&rsquo s payout ratio will provide SGX&rsquo s shareholders with &ldquo better clarity&rdquo on its forward trajectory.

 

SGX is also looked upon as a dividend cum growth stock, says Koh. As such, the group has to balance that with regard to enhancing shareholder return but also investing in sustainable growth, he adds.

The board proposes a final quarterly dividend of S$0.105 a share, up from S$0.09 previously

 

[SINGAPORE] Singapore Exchange : S68 -2.45% (SGX) reported its highest-ever full-year revenue and net profit since listing on Friday (Aug 8). This milestone comes amid a 2.6 per cent decline in net profit for the second half ended June 2025, which fell to S$308 million from S$316.3 million a year earlier. 

 

&ldquo FY 2025 was a defining year for SGX, marked by our strongest performance on record,&rdquo said chief executive officer of the bourse, Loh Boon Chye, at the financial results briefing on Friday.

 

He attributed the growth to disciplined execution of the group&rsquo s multi-asset strategy, deeper client engagement, and targeted innovation across its product offerings.

 

SGX&rsquo s chief financial officer, Daniel Koh, presenting the group&rsquo s financials for the first time since officially stepping into his role last December, said the group delivered strong and sustained business growth across all operating segments. 

 

This reinforces its position as the &ldquo trusted multi asset platform for clients - raising capital, seeking investment opportunities and managing risks,&rdquo he said.

 

&ldquo Steady dividend increase&rdquo

&ldquo Given SGX&rsquo s confidence in its long-term, sustained prospects, the board has proposed a steady dividend increase of S$0.25 every quarter from FY2026 to FY2028,&rdquo said Koh.

 

It has also proposed a final quarterly dividend of S$0.105 a share, up from S$0.09 per share in the same quarter the year before. If approved, total dividends for FY2025 will stand at S$0.375, representing an annualised increase of 8.7 per cent. 

 

The proposed final quarterly dividend will be payable on Oct 27, after approval at the upcoming annual general meeting.

 

Meanwhile, earnings per share (EPS) for the half-year period stood at S$0.288, down from S$0.296 for H2 FY2024.

 

Net profit for the full year of the Singapore bourse stood at nearly S$648 million, an increase of 8.4 per cent from S$597.9 million in FY2024. This translates to a full-year EPS of S$0.606. 

 

Operating revenue and expenses rise

Operating revenue for FY2025 was up 11.3 per cent to S$1.37 billion from S$1.23 billion in the previous financial year. 

 

The growth in operating revenue was achieved on the back of an 8.6 per cent increase in fixed income, currency and commodities net revenue to S$321.6 million, accounting for 24.8 per cent of total net revenue. 

 

This was in turn driven by trading and clearing revenue increasing 17.8 per cent, as over-the-counter foreign exchange (OTC FX) net revenue rose 25.3 per cent, and was offset by treasury and other revenue declining 20.4 per cent.

 

Cash equities rose by 18.7 per cent to S$392.7 million for the period, while platform and other revenue increased 3 per cent to S$238 million. 

 

SGX&rsquo s chief executive Loh said that the group&rsquo s FX desk, has risen to rank among the top three exchange-backed OTC FX platforms, with room to grow further. 

 

&ldquo Looking ahead, we are on track to achieve 6 per cent to 8 per cent growth in our group revenue (excluding treasury income),&rdquo he said. 

 

SGX&rsquo s total adjusted expenses rose 1.6 per cent to S$542.8 million, up from S$534.3 million a year earlier. The increase was mainly due to a S$9 million rise in staff costs, driven by a higher variable bonus provision in line with improved profitability.

 

The group clarified that variable staff costs remain performance-linked, and it is reviewing its internal processes to manage staffing more effectively. It is also looking to manage expenses with discipline.

 

Strong cash equities performance

SGX is gaining strong momentum in its cash equity business, with its initial public offering pipeline reaching its most robust level in years, Loh said.

 

&ldquo Through our efforts to deepen market participation and the tailwinds from the MAS equity review group to boost currency, we started to see a significant improvement in stock market liquidity and volumes, not just in the index stocks, but also in the small and mid cap (companies),&rdquo he added.

 

Loh also noted that the group has been curating a diverse product suite designed to help investors diversify their portfolios across asset classes, geographies, and themes. For example, SGX has expanded its Singapore depository receipts offering by adding more names to the suite.

 

He said the group is entering FY2026 with &ldquo readiness and a clear growth agenda&rdquo .

 

&ldquo While market conditions may stabilise following the earlier economic uncertainty and volatility, capital flows into Asia are likely to remain strong, and we are well positioned to capitalise on this across regions and products,&rdquo Loh added.

 

For FY2026, SGX said in its Friday bourse filing that it will invest in key strategic areas, including capability building and technology enhancements, where expenses are expected to increase by 4 to 6 per cent, and capital expenditure is expected to come in at S$90 million to S$95 million. This comes with investments in long-term scalability to achieve resilience for its technology systems and infrastructure. 

 

The group also noted in its statement that it is collaborating with the Monetary Authority of Singapore and key ecosystem partners to strengthen the competitiveness of the Singapore equities market. 

 

&ldquo We are positive about our initial public offering pipeline and its near-term outlook. Concurrently, we are exploring the development of new categories of structured products to broaden our retail and institutional offerings,&rdquo SGX said.

The Singapore Exchange (SGX Group) has reported its highest revenue and net profit since listing, following record first-half figures posted in February. SGX reported earnings of $648 million for the FY2025 ended June 30, 8.4% higher than FY2024&rsquo s earnings of $598 million.

 

Earnings per share (EPS) stood at 60.6 cents.

 

On an adjusted basis, SGX&rsquo s earnings increased by 15.9% to $609.5 million from FY2024&rsquo s adjusted figure of $525.9 million. The figure excludes certain non-cash and non-recurring items that are said to have less bearing on SGX&rsquo s operating performance.

 

Adjusted EPS also grew by 15.9% y-o-y to 57 cents.

 

Net revenue &mdash after netting off transaction-based expenses &mdash increased 11.7% y-o-y to $1.30 billion, driven by higher revenue from all business segments. This includes associated treasury income. Treasury income declined $6.5 million y-o-y.

 

During the financial year, SGX recorded six new equity listings, which raised $25.7 million. This is down from seven new listings in FY2024, which raised $117 million.

 

Cash equities&rsquo revenue rose by 18.7% y-o-y, or $62 million, to $392.7 million as securities daily average value (SDAV) over the year rose to $1.34 billion from $1.06 billion last year. Equities accounted for 30.3% of total net revenue.

 

Derivatives&rsquo revenue was up 13.8% y-o-y, or $44 million, to $345.9 million as the daily average volume (DAV) rose to 1.3 million contracts from 1.1 million contracts last year. Commodities and equity derivatives contributed to the increase.

 

Derivatives accounted for 26.6% of total net revenue.

 

Currencies and commodities net revenue increased 8.6% y-o-y to $312.5 million. Over-the-counter foreign exchange (OTC FX) saw net revenue increase by 25.3% y-o-y, or $23 million, to $113 million. OTC FX headline average daily volume (ADV) increased 28.5% y-o-y to US$143 billion.

 

Net revenue from SGX&rsquo s last of four segments &mdash platform and others &mdash rose 3.0% y-o-y to $238.0 million and accounted for 18.3% of total net revenue.

 

Proposed dividend increase

SGX has proposed a final quarterly dividend of 10.5 cents per share, up by 1.5 cents from last year&rsquo s final quarterly dividend and 16.7% higher y-o-y. This brings SGX&rsquo s total FY2025 dividend to 37.5 cents per share.

 

The bourse has also proposed a 0.25-cent increase in its dividend every quarter from FY2026 to FY2028. This is subject to SGX&rsquo s shareholders&rsquo approval at its annual general meeting (AGM) to be held on Oct 9.

 

Should the proposed increase go through, FY2026 will see a total dividend payout of 44.5 cents, while FY2027 and FY2028 will see total dividends of 48.5 cents and 52.5 cents per share respectively.

 

Total capital expenditure in FY2025 was $67.6 million, largely flat from $66.0 million this time last year.

 

SGX Group CEO Loh Boon Chye says FY2025 was a &ldquo landmark year&rdquo . &ldquo We have demonstrated the enduring strength and resilience of our diversified multi-asset strategy with our strongest performance ever... As we execute with focus and invest strategically in our core businesses, we will drive sustainable growth and long-term value for our shareholders.&rdquo

 

Koh adds: &ldquo Looking ahead, we are on track to achieve 6%-8% growth in our group revenue (excluding treasury income) in the medium term. SGX FX &mdash one of our key growth drivers &mdash has risen to rank among the top three exchange-backed OTC FX platforms, with room to grow further. We will also strengthen our high-quality, multi-asset product shelf &mdash across asset classes, geographies and themes.&rdquo

 

RHB Group Research (RHB) analyst Shekhar Jaiswal has raised his target price (TP) on the Singapore Exchange Group (SGX) from $14.10 to $16. The analyst has maintained his &ldquo neutral&rdquo call on the stock&rsquo s recent share price rally, which opened at a five-year high of $15.23 on July 7.

 

Jaiswal notes in his report that the rally likely reflects investor rotation into Singapore as a safe haven, with the securities daily average value (SDAV) reaching $1.9 billion in April.

 

Despite this, the SDAV has fallen m-o-m since then, with May&rsquo s value coming in at $1.3 billion and Bloomberg estimating June&rsquo s SDAV to arrive at $1.2 billion.

 

However, Jaiswal still expects SGX&rsquo s 4QFY2025 SDAV to rise 13% q-o-q and 25% y-o-y, with June&rsquo s SDAV estimated to grow 26% y-o-y.

 

&ldquo We believe this growth trend will continue, as we expect the Monetary Authority of Singapore&rsquo s (MAS) $5 billion equity market development programme (EQDP) initiative to further deepen equity market participation by investors beyond Straits Times Index (STI) constituents,&rdquo writes Jaiswal.

 

He adds: &ldquo Nevertheless, 2HFY2025 SDAV is tracking below our prior assumptions. As a result, we trim FY2025 turnover forecasts and lower our FY2025 profit estimate by 1%. Derivatives volume data, due later this week, has yet to be incorporated.&rdquo

 

Meanwhile, for FY2025, SGX expects expenses to rise at the lower end of its 2% to 4% guidance range and capital expenditure (capex) to come in at the low end of the $70 million to $75 million range.

 

Over the medium term, the group targets 6% to 8% revenue growth excluding treasury income and a low to mid-single-digit rise in expenses.

 

On this, Jaiswal forecasts a FY2024 to FY2027 compound annual growth rate (CAGR) of 8.7% in revenue and a CAGR of 5.1% in expenses over the same period.

 

Capex, he notes, will rise due to ongoing tech modernisation but is expected to stay below the historical 7% of group revenue.

 

SGX aims to deliver mid single-digit CAGR in dividend per share (DPS).

 

As the group&rsquo s overseas operations expand, the analyst notes that the effective tax rate is expected to gradually increase.

 

&ldquo It was at around 18% in 1HFY2025 and is projected to stay around these levels. We estimate FY2025 to FY2027 tax rate at 17% to 17.4%,&rdquo writes Jaiswal.

 

Reflecting updated assumptions, he raises his FY2026 and FY2027 SDAV forecasts, leading to a 0.8% and 1.4% uplift in profit estimates each.

 

Jaiswal writes: &ldquo We roll forward our valuation base to FY2026. In light of expected sustained trading activity, we raise our target price-to-earnings ratio (P/E) multiple to 23.5 times, at one standard deviation (s.d.) above SGX&rsquo s long-term average.&rdquo

 

Key drivers noted by the analyst include increases in total securities trading volume and total derivatives trading volume, as well as an effective trading and clearing rate.

 

On the other hand, key downside risks to his call include a lower-than-expected securities market turnover, lower-than-expected trading in derivative contracts and a lower-than-expected clearing and trading rate.