Written by The Edge
Monday, 22 March 2010 10:52
Singapore Exchange (S68.SG) off 1.2% at $7.93 as widely-regarded barometer of broad market health knocked back below $8 amid falling trading activity in Singapore.
Average daily volume last week for Singapore market merely 1.25 billion shares worth $1.22 billion vs 1.43 billion shares worth $1.44 billion in previous week.
“The Street is way too bullish (in terms of earnings estimates for SGX),” says CIMB, which has Underperform call; “even though the STI was more buoyant recently, we doubt that trading values can raise earnings to the levels expected by the Street.”
Notes current consensus estimates imply average daily value of S$3.1 billion for fiscal 4Q10 ending June. Cuts target price to $8.38 from $8.83 after reducing FY10-12 earnings forecasts by 5%-10%.
