SGX price targets slashed on MSCI licence loss, increased competition

Singapore

THE Singapore Exchange's (SGX) impending loss of most of its MSCI equity index futures and options contracts will likely translate into lower earnings, hindered growth and greater competition within the derivatives space.

This is according to analysts from DBS, OCBC, RHB, CGS-CIMB and Jefferies, who have all cut their target prices (TPs) for the bourse operator - with some downgrading the stock - following news that MSCI will shift index licensing for some derivatives to the Hong Kong bourse.