SGX falls 5.8% as initial MAS review group proposals dampen earlier optimism; Citi downgrades stock to ‘sell’
The counter could potentially give up much of its gains since unveiling its first-half results
SHARES of Singapore Exchange (SGX) fell as much as 6.3 per cent or S$0.85 to S$12.62 on Friday (Feb 14) as investors were less than impressed with the initial proposals to revive the equities market.
The counter closed at S$12.69, down S$0.78, or 5.8 per cent, on turnover of 7.2 million shares.
Citi Research downgraded its call on the SGX to a “sell” on Friday, as it expects the recent optimism priced into the counter’s valuation to unwind. It also lowered the price target of the stock to S$11.90.
The bank’s downgrade come a day after the equities market review group of the Monetary Authority of Singapore (MAS) announced its first set of measures.
The review group had proposed introducing tax incentives to attract enterprises and fund managers to list in Singapore. It also aims to encourage the launch and growth of funds with substantial investment in local equities.
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Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Vanity Fair Fashion.
