A biased and opinionated defence of SGX
A biased and opinionated defence of SGX Please note that this author already holds a position in SGX and may be intending to acquire more if there is volatility in stock prices. The views of this author are his own and do not constitute as financial advice. Readers are suggested to do their own diligence before proceeding. 1) Strong balance sheet Management reiterated its commitment to a progressive dividend policy. Strong balance sheet suggest the ability to support dividends and concise valuation via Dividend discount model 2) Perceived negative Impact on SGX derivatives revenue stream MSCI contracts make up about 15% of its equity derivatives daily average volumes (DAV) and about 12% of total derivatives DAV. => 15% * 51 = 7.65% drop in revenue in the worst case (assuming no change) => So why are you so worried? 3) Perceived tailwinds for HKEX surely present headwinds to SGX HKEx has signed an agreement with MSCI to introduce new products based on MSCI Asia and