Jun[7] - SGX (benefit throughout bull/bear market)

COUNTER: Singapore Exchange Limited

OVERVIEW:
The counter operates an integrated securities exchange and derivatives exchange in Singapore and related clearing houses. It provides listing (IPO), trading, clearing, depository, market data, etc. Security products includes stocks, business trust, REIT, ETF, notes, etc. Derivative products comprise of foreign exchange and interest rate products, commodities, forwards contracts, etc.

HIGHLIGHTS:
[1] Latest financial results saw stable earning quarter on quarter and year on year.

[2] Year to date earning of 2016 is set to beat last year record with improvement across major segments.

[2] The counter is in net cash position without any borrowing. Debt/Total equity is 0. Company policy is to distribute 80% of earning or 0.2 per shares as annual dividend, whichever is higher.

INVESTMENT THEMES:
[1] Current valuation: PB ~ 8.5 || Dividend yield ~ 3.8% || PE ~ 21 
     
[2] Although STI has been riding its up and down trend throughout past 5 years, the counter has been generating stable earning with increasing dividend. Thus recent turbulent in market provide hunting opportunity.

[3] On May 25, the counter announced its exclusive discussion with Baltic exchange regarding to acquisition bidding of the latter. The deal could complement SGX's current derivatives business, especially freight derivatives.

PRICE TREND:
The counter has been moving back to its average price range throughout past one year. Immediate support is 7.3 followed by 7. 6.67 is three year trough, which also represent one of its highest dividend yield at 4.2%.