SGX falls 6% as initial MAS review group proposals dampen earlier optimism; Citi downgrades to ‘sell’

CITI Research has downgraded its call on the Singapore Exchange (SGX) to “sell”, and revised its target price to S$11.90, as it expects the recent optimism priced into the counter’s valuation to unwind.

Shares of SGX fell more than 6 per cent or S$0.85 to S$12.62 as at 9.01 am on Friday (Feb 14).

CITI Research’s note comes a day after the equities market review group of the Monetary Authority of Singapore (MAS) announced its first set of measures.

The group proposed introducing tax incentives to attract enterprises and fund managers to list in Singapore. It also aims to encourage the launch and growth of funds with substantial investment in local equities.

The first set of measures has already been submitted to Prime Minister and Minister for Finance Lawrence Wong. A fuller update on these measures will come on Feb 21.