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SGX falls 6% as initial MAS review group proposals dampen earlier optimism; Citi downgrades to ‘sell’

SGX falls 6% as initial MAS review group proposals dampen earlier optimism; Citi downgrades to ‘sell’

By Swedan Margen

Fashion

The counter could potentially give up much of its gains since unveiling its first-half results

CITI Research downgraded its call on the Singapore Exchange (SGX) to “sell” on Friday (Feb 14), as it expects the recent optimism priced into the counter’s valuation to unwind.

Citi also lowered its price target to S$11.90. Shares of SGX fell more than 6 per cent or S$0.85 to S$12.62 just after market open on Friday. They were last at S$12.68 as at 1.44 pm on Friday.

The bank’s downgrade and price target reduction comes 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.

The first set of measures has already been submitted to Prime Minister and Minister for Finance Lawrence Wong. A fuller update on these measures will come on Feb 21.

Copyright SPH Media. All rights reserved.

Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

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