From mint · · 1m
SGX Loses $4.2 Billion in Value
Analysts downgrade SGX stock as valuation concerns mount.
In brief
Analysts downgrade SGX stock as valuation concerns mount. Singapore Exchange shares dropped $4.2 billion in value after analysts criticized its high valuation multiples. Originally reported by mint.
SGX Shares Slip
SGX shares slipped Monday, erasing $4.2 billion in market value since an August peak due to rising valuation concerns.
Analysts Downgrade SGX
Citigroup lowered its price target and placed SGX on a 90-day negative catalyst watch while JPMorgan and Macquarie downgraded ratings.
SGX Stock Tumbles
SGX shares have fallen 19% since August 26, making it the worst performer on Singapore’s Straits Times Index.
Valuation Concerns
SGX trades at 26 times forward earnings versus a 10-year average of 22 times and 16 times for the Straits Times Index benchmark.
Citi Cuts Earnings
Citi reduced SGX earnings estimates and warned sluggish iron-ore trading could weigh on derivative fees.
SGX Shares Fall
SGX shares dropped 2.1% on Monday after a 7% decline in the previous session.
The bottom line
Singapore Exchange shares dropped $4.2 billion in value after analysts criticized its high valuation multiples.
