SINGAPORE, Oct 18 (Reuters) - CIMB Research downgraded Singapore Exchange (SGX) to underperform from neutral and cut its share-price target to S$5.86 from S$5.93.
Singapore Exchange , Asia's no. 2 listed bourse by market value, warned market activity in the near-term could be hit, even as it posted an 18 percent forecast-beating rise in quarterly profit on strong derivative revenues.
CIMB cut its fiscal 2012-2014 earnings-per-share estimate as it expects costs to rise from the second quarter, and as October's daily trading value was not promising, the brokerage said.
"Sure, first quarter results were good, with cost-control the star. Unfortunately, subdued costs are a mirage with revenue reflecting a quarter when market lethargy has yet to set in," CIMB said in a report.
Shares of SGX have fallen about 25 percent since the start of the year. They closed at S$6.29 on Monday. (Reporting by Charmian Kok; Editing by Vinu Pilakkott)