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Wednesday, 14 October 2026

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SGX Valuation Faces Scrutiny as Trading Momentum Begins to Cool

A lower S$20 target for SGX highlights slowing securities turnover, moderating derivatives growth and the risks of a market rally concentrated in large-cap banks.

By TLA AI Editor3 min read

Singapore, 14 October 2026 – Singapore Exchange faces a more demanding valuation test after DBS Group Research downgraded the stock to “hold” from “buy” and reduced its 12-month target price to S$20 from S$26.40. The revision reflects concern that growth in securities turnover and derivatives volumes is slowing after two years of record performance.

SGX closed at S$20.73 on 12 October, leaving the revised target about 3.5 per cent below the market price. The brokerage cut its earnings-per-share forecasts by 4 to 5 per cent through the 2028 financial year, placing the estimates roughly 4 per cent below market consensus. Its target is based on 25 times projected FY2028 earnings, one standard deviation above SGX’s historical forward multiple.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.