Archive · 5 Oct 2026
SGX Loses $4.2 Billion as Analysts Question Valuation
Singapore Exchange, or SGX, runs a stock exchange in Singapore.
Its shares have dropped since reaching a record price in August.
The fall has erased about $4.2 billion in market value.
Some investment firms think the shares are still expensive compared with earnings.
Several analysts have lowered their ratings or price targets.
Citigroup said trading is concentrated in a few large banks, which could make the market more vulnerable to swings.
It also said slow iron-ore trading could reduce some fees SGX earns.
SGX shares fell again on Monday after dropping more than 7% in the previous session.
Singapore Exchange shares have fallen 19% since reaching a record high on Aug. 26, wiping about $4.2 billion from its market value.
Citigroup cut its price target to S$17.70 and maintained a sell rating, while putting the shares on a 90-day negative catalyst watch.
JPMorgan downgraded SGX to neutral, and Macquarie lowered its recommendation to underperform.
SGX trades at nearly 26 times projected 12-month earnings, above its 10-year average of 22 times and the Straits Times Index's roughly 16 times.
Citigroup cited concentrated trading in major banks and sluggish iron-ore trading as risks to SGX's market and derivatives-fee earnings.
- Who
- Singapore Exchange Ltd. and analysts at Citigroup, JPMorgan Chase and Macquarie.
- What
- SGX shares have lost about $4.2 billion in market value as analysts raise concerns about valuation and business risks.
- When
- The shares fell on Monday; the decline has run from the Aug. 26 record high, with analyst actions reported in September and October.
- Where
- Singapore.
- Why
- Analysts cited a high valuation, concentrated trading in major banks, and potentially weaker derivatives fees from sluggish iron-ore trading.
Analyst concerns
Earlier market optimism
SGX valuation and outlook
Analyst concerns
Citi said SGX's valuation remains high, cut earnings estimates and lowered its price target; JPMorgan and Macquarie also reduced their recommendations.
Earlier market optimism
Before the recent decline, SGX was among the Straits Times Index's top 2026 performers, supported by growing institutional interest in Singapore equities, particularly major bank shares.
- Market-value decline
- About $4.2 billion since the August peak.
- Share-price decline
- 19% since the record high on Aug. 26.
- Monday trading
- Shares fell as much as 2.1%, after declining more than 7% in the previous session.
- Citi price target
- S$17.70 per share, implying nearly 16% downside from Friday's close.
- Citi rating
- Sell, with a 90-day negative catalyst watch.
- Forward valuation
- Nearly 26 times projected 12-month earnings, compared with a 10-year average of 22 times.
- Benchmark valuation
- The Straits Times Index trades at around 16 times.