Above industry average ESG rating maintained

Operating an integrated securities and derivatives exchange across different asset classes, Singapore Exchange (SGX) is the leading securities market in Southeast Asia, exchanging trade stocks and bonds, ETF, warrants, derivatives and infrastructure funds. As of FY22 (financial year ended June 2022), the Equities segment contributed ~63.6% to total revenues, while Fixed Income, Currencies and Commodities (FICC) and Data, Connectivity and Indices (DCI) contributed 23% and 13.4% respectively. Looking ahead, the company expects FICC and DCI to be relatively faster growth areas. SGX has a progressive dividend policy (FY22 dividends of 32 cents/share was stable from a year ago). While we are positive on its various initiatives to broaden its revenue streams and expect further ramp-up of revenues from recent bolt-on acquisitions, time will be needed to execute its plans, while near-term concerns have included the increased competition in the China A50 equity derivatives space and normalization in trading activity. SGX’s medium-term strategy is to advance its multi-asset exchange platform, widen its partnership network and grow its international presence, with the goal to increase diversification of its revenues. The company introduced climate reporting and board diversity disclosure requirements for listed companies in FY2022, which will be implemented in phases although companies in more carbon-intensive sectors are mandated to furnish from FY2023.

However, while it's fundamentals are robust,I am very cautious at investing at this stage as the stocks seem to be too bullish given the impending recession. I will only enter this stock once ir faces a mild correction.

@TigerStars 

DYODD