Singapore Stocks to Buy and Hold Forever: 2. Singapore Exchange Limited

Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.

The group enjoys a natural monopoly by being the only bourse operator in Singapore.

Of late, SGX has morphed into being more than just a stock exchange; it is also advancing on its plan to become a multi-asset exchange offering a suite of products such as stocks, bonds, derivatives, currencies, and options for investors to construct and manage their investment portfolios.

The group reported a 4% year-on-year increase in revenue to S$1.1 billion for its fiscal 2022 (FY2022) ending 30 June 2022.

Net profit inched up 1% year on year to S$451 million.

Moving on, for the first half of FY2023 (1H FY2023), SGX’s revenue jumped 10% year on year to S$571 million while net profit climbed 30% year on year to S$285 million.

Annual dividends have been on the rise, going from S$0.26 in FY2009 to S$0.32 in FY2022.

SGX also saw rising daily average volume across equities, foreign exchange, and commodities for 1H FY2023.

What’s more, its over-the-counter foreign exchange business is on track to achieve an average daily volume of US$100 billion soon, with 1H FY2023 clocking up a volume of US$68 billion.

The bourse operator recently launched Singapore Depository Receipts in partnership with the Stock Exchange of Thailand, allowing Singapore investors to have access to three Thai-listed blue-chip stocks.

SGX has also inked a deal with NSE International Exchange for the full-scale trading operations for the NSE IX-SGX GIFT Connect, a first-of-its-kind financial corridor between Singapore and India.

These initiatives, along with the strong market position that SGX possesses, should enable the group to continue posting steady growth in profits and dividends in the coming years.