STOCKS NEWS SINGAPORE-DMG, Keeps Sell

STOCKS NEWS SINGAPORE-DMG raises SGX target to S$5.30, keeps sell

DMG & Partners Securities raised its target price on Singapore Exchange Ltd (SGX) to S$5.30 from S$5.00, but maintained its 'sell' rating on the bourse operator.

SGX shares were down 0.6 percent at S$6.88 on Wednesday. The stock has gained 12 percent so far this year versus the 14 percent gain in the broader Straits Times Index.

SGX recorded average daily turnover (ADT) of S$1.41 billion ($1.15 billion) in August, up from S$1.23 billion in July, largely due to increased trading of Fraser and Neave Ltd shares, DMG said.

Thai Beverage PCL is working with a partner on a potential bid for F&N to get its hands on the Singapore company's property and soft drinks businesses after Heineken NV took pole position in the battle to buy F&N's prized beer brewer.

But SGX's nine-year ADT compound annual growth rate is half that of Hong Kong Exchanges and Clearing Ltd (HKEx), DMG said, adding that HKEx is more likely to be a beneficiary of foreign funds inflow than SGX.