SGX at an investment sweet spot: report

The Singapore Exchange is well-positioned to capture the global flows of various asset classes, according to a report from Jefferies Equity Research.

Analysts from Jefferies Equity Research said that the Singapore Exchange (SGX) is currently at an “investment sweet spot.”

It noted that through mergers and acquisitions, partnerships, and in-house developments, it has positioned itself in a great spot to capture the global flows of various asset classes who wish to participate in the Asian growth story.

“We believe the exchange offers a unique investment proposition combining stability from solid core businesses, exciting growth engines, and a host of emerging opportunities,” Jefferies said in a report.

Jefferies added that SGX’s method of binding securities and futures mutually reinforces liquidity.

“The exchange can launch new/replacement products quickly, leading to network and portfolio effects, such as the launch of FTSE contracts,” it said.

Other things that improve liquidity include its pipeline of global REIT listings, secondary listings from US unicorns, its aim to be an SPAC listing venue, and its connectivity and flow from China.

It also noted its position as the number one green bond listing venue, with 50% market share of Asian issuances over the past 12 months.

Thus, the brokerage firm maintained its advice to investors to buy SGX stocks.