SGX Jumps to 19-Month High on Earnings: Singapore Mover

Singapore Exchange Ltd., operator of Southeast Asia’s biggest stock market, jumped to its highest level in more than 18 months after reporting second-quarter results that beat analyst estimates.

The stock rose 1.2 percent to S$7.63, the highest close since July 2011. The company said yesterday second-quarter profit climbed 17 percent to S$76.3 million ($62 million) as trading in equities and derivatives increased. That exceeded the S$74.8 million average estimate by six analysts in a Bloomberg News survey.

“We expect good results and solid trading volumes to lead to upgrades in earnings, price targets and recommendations,” Harsh Wardhan Modi, an analyst at JPMorgan Chase & Co. in Singapore, wrote in a note today. “SGX remains our top pick within Asian exchanges.”

JPMorgan expects SGX to post a net income of S$330.1 million in the year ending June 30, compared with S$291.8 million in the previous year, according to the note. The brokerage rates the stock overweight, with a share-price forecast of S$8.50, that’s the highest among the 21 analysts whose recommendations are tracked by Bloomberg News.

The average value of equities traded daily rose 11 percent to S$1.23 billion in the October-to-December quarter from a year earlier, according to data compiled by Bloomberg. Average daily transactions in the derivatives market increased 30 percent to a quarterly record high of 358,532 contracts, while open interest climbed 83 percent to 2.5 million contracts, SGX said yesterday.

Before it's here, it's on the Bloomberg Terminal.