Thursday, 19 July 2012

DMG downgrades SGX to sell, maintains TP of S$5.00

DMG & Partners Research (DMG) has downgraded Singapore Exchange's (SGX) rating to sell on Friday, maintaining its target price of S$5.00 due to the uncertainty of merger talks between London Stock Exchange (LSE) and SGX.
Stocks for SGX were at S$6.78 at 1.17pm, gaining 1.50 per cent from the start of the day's trading.
The Daily Telegraph had reported on the possible merger between LSE and SGX worth a potential 7.2 billion pounds (US$11.31 billion) today, however SGX had since refuted that claim, according to Reuters.
"Pending more details from either SGX or LSE, it would be difficult to assess the impact of any potential M&A on SGX's share price performance," said DMG's report.

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