Chart Source: Advisor XS 9th Feb 2022
The Singapore Exchange or SGX for short reported its results on Monday and most analyst were satisfied with the results. The biggest rerating came from Citi analyst upgrading it from a sell to a buy rating with a price target of $10.50. Some highlight of its results :
For the 1HFY2022 ended Dec 2021, SGX reported earnings of $219 million, down 8% y-o-y; adjusted earnings, which SGX claims is a more accurate reflection of its underlying earnings, was down 2% y-o-y.
Revenues of $522 million were flat y-o-y with higher operating expenses of $262 million, up 6% y-o-y, and operating profit of $260 million, down 7% y-o-y.
With more interest in local SPAC (Special Purpose Acquisition Company) listings , this could also support market velocity and fees moving forward for SGX.
As we spotted SGX just a month back when it started to break above its downtrend line, it started to show resilience despite a negative sentiment around that time. For contra players, they might have taken some profits as SGX has risen in a few days. But in order to maximize the trade, a trade might consider using CFD in order to swing in with minimal cost. As our alert was at $9.50, we have seen SGX swinging to a high of $10.03 up over 5%.
There is some resistance between the range of $10.03 -10.10 and overcoming it might see SGX move up to , momentum and volume is building up for SGX and we might see it move to $10.50 before taking a break.
In order to ride the this trend, a trade has to either trade in or out or purchase the share. To know how to swing such a trade at a fraction of a cost and free up your capital then do join us in our upcoming WEBINAR where we’ll show you how to hold on to your winning trades in order to ride the trend!
Date: 17th feb
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