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Investing.com - UBS downgraded Singapore Exchange (SGX:S68) (OTC:SPXCY) from Neutral to Sell on Sunday, while raising its price target to SGD14.50 from SGD12.30. The exchange operator currently maintains a perfect Piotroski Score of 9, indicating strong financial fundamentals.
The downgrade comes as Singapore Exchange shares have surged approximately 33% year-to-date and recorded an impressive 66% return over the past year, according to InvestingPro data, with the stock currently trading near its 52-week high of $25.72.
UBS noted that earnings upgrades driven by higher market volatility contributed to roughly half of the year-to-date performance gain for the exchange operator.
The remaining performance improvement was attributed to higher valuations, with investors likely anticipating increased securities daily average value (SDAV) following the ongoing Monetary Authority of Singapore (MAS) equities market review.
UBS highlighted that the SGD5 billion Equity Market Development Programme announced in February 2025 and the recent selection of three fund managers to receive the first SGD1.1 billion tranche likely fueled investor optimism that "this time could be different."
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