Securities market outlook not positive: RHB

SGX has not ruled out the possibility of acquisitions which might impact higher dividends.

The Singapore Exchange's EBITDA margin has been declining and is expected to drop further, a RHB analyst said.

With this, the outlook for the securities market is negative with securities daily average traded value expected to drop by around 12% in the fiscal year of 2023.

The firm’s operating expenses were lower than expected and this resulted in a higher net profit compared to predictions. 

The bourse has adjusted its profit forecast for the next 2 fiscal years by 2% each.

Despite the positive earnings, the outlook for the stock in the short term remains weak because of uncertainty in the macroeconomic environment and low market valuations that may delay new listings.

The target price for SGX is $9.40, which includes an ESG premium of 8%.