Singapore Exchange stands to benefit from heavier-than-average trading volume on the local bourse, OCBC Investment Research's Research team says in a note.
Several Straits Times Index component stocks have posted trading volumes exceeding 5X-6X their average six-month trading volume, the team says. Also, SGX will benefit from increased hedging activities for its derivatives business given heightened market volatility, the team says.
Moreover, OCBC views management's focus on cost control as a positive amid current macroeconomic uncertainties.
OCBC raises the stock's fair value estimate to S$14.09 from S$13.68 to reflect a rolling forward of valuations while maintaining the buy rating.
Shares are 1.8% higher at S$12.78.