Singapore Exchange expected to announce a set of sterling results

Singapore Exchange, which operates the Mainboard listing of companies in Singapore is expected to announce a set of good 1Q2006 results tomorrow on the back of high volumes. Furthermore, the success of its derivatives trading has led to higher revenues. Singapore Exchange recently denied speculations that it will merge with US-based Nasdaq. However, fresh rumours are up again on talks that Australia-based Macquarie Bank will snap up stakes in Singapore Exchange as it looks forward to build a portfolio of stakes in Asia-Pacific bourses.

A stake purchase by Macquarie in SGX will help support long term prices. However, recent prices of Singapore Exchange has reached a new high and short term upside to this stock seems unlikely. Analysts covering the stock have placed target price to be between S$4.15 to $4.30 while the company's share price has breached this mark.