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SGX shares fall, cutting about $4.2 billion from market value
The stock is down 19% since its Aug. 26 record high as banks’ selloff raises concerns about concentration in heavyweight lenders.
Singapore Exchange Ltd. shares slipped on Monday, extending a slump that has erased about $4.2 billion in market value since an August peak, as analysts voiced concerns about the stock’s valuation, according to LiveMint Markets.
The coverage cited multiple brokerage moves, including Citigroup lowering its price target and placing the shares on a 90-day negative catalyst watch with a sell rating. JPMorgan Chase downgraded SGX to neutral, while Macquarie cut its recommendation to underperform.
SGX has tumbled 19% since hitting a record high on Aug. 26, making it the worst performer on Singapore’s Straits Times Index over the period. The article also pointed to rising trading concentration in major banks as a key market risk.
LiveMint Markets said the concentration risk was highlighted in a note by Citi analyst Yong Hong Tan, referencing vulnerability in the STI amid a broader global banks selloff.